MAURITIUS Law and Practice Contributed by: Sameer K Tegally, Sonia Xavier and Ashvan Luckraz, Venture Law
From 1 July 2025, the income tax rates and bands will be revised. The revised progressive tax bands will be as follows: 0% on the first MUR500,000 of chargeable income, 10% on the next MUR500,000, and 20% on the remain - ing income. Moreover, from 1 July 2025, individuals aged 18–28 earning up to MUR1 million/year will be exempt from income tax on salary or business income. An individual (employed or self-employed) has to file income tax returns for the preceding income year, declaring their income and deductions to the Mauritius Revenue Authority (MRA). Employers are required to operate a cumulative system of pay as you earn (PAYE) whereby tax withheld from emoluments that are made avail- able to an employee has to be remitted to the MRA within 20 days. If tax is underpaid under the PAYE system, the unpaid balance becomes payable on or before 30 September following the end of the income year. If tax is overpaid, a refund of the excess tax is made to the taxpayer. Every month, every employer shall pay the amount of contribution to the MRA in respect of every employee who was employed during the preceding month. Currently, the CSG and National Solidary Fund (NSF) contributions are payable at the prescribed rate on an employee’s basic wage/salary. An employer is required to contribute 2.5% of remuneration to the NSF and to pay a monthly rate of 1.5% of the basic salary of every employ - ee.
Under the CSG: • employees earning MUR50,000 or less monthly will be subject to a contribution of 1.5%, and 3% for the employers; • employees earning more than MUR50,000 monthly will be subject to a contribution of 3%, and 6% for the employers; • a public sector employee earning MUR50,000 or less monthly will not be subject to the con - tribution, and 4.5% for the employers; • a public sector employee earning more than MUR50,000 monthly will not be subject to the contribution, and 9% for the employers; and • an employee who is in domestic service earn - ing MUR3,000 or less monthly, from one or more employers, shall not be subject to the contribution, and 3% for the employers. In the 2025-2026 Mauritius budget, the govern - ment plans to revamp the National Pension Fund (NPF) and potentially replace the existing Contri- bution Sociale Généralisée (CSG) system. Fair Share Contribution Following the 2025–2026 Mauritius Budget, the government will introduce an additional 15% tax on individuals whose annual income (including dividends) exceeds MUR12 million. This measure will apply from 1 July 2025 to 30 June 2028 and will be collected through the PAYE system. 5.2 Taxes Applicable to Businesses A corporation resident in Mauritius is subject to tax on its worldwide income. A non-resident cor - poration is liable to tax on any Mauritius-source income, subject to any applicable tax treaty pro - visions. Corporations are liable to income tax on their net income, currently at a flat rate of 15%.
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