MAURITIUS Law and Practice Contributed by: Johanne Hague, Gaelle Angoh Li Ying Pin, Medina Torabally and Béatrice Phanjoo, CMS Prism in association with CMS
Definition of Income Income for the purposes of the ITA 1995 includes: • any advantage in money or in money’s worth such as salary, wages, leave pay, fee, overtime pay, perquisite, allowance, bonus, gratuity, commission or other reward or remuneration in respect of or in relation to the office or employment of that individ - ual, any superannuation, compensation for loss of office, pension, retiring allowance, annuity or other reward in respect of or in relation to past employ - ment or loss or reduction of future income of that individual, whether receivable by that individual or by any person who is or has been the spouse or dependant of that individual; • any gross income derived from any business; • any rent, royalty, premium or other income derived from property; • any dividend, interest, charges, annuity or pension; • basic retirement pension payable under the Nation - al Pensions Act 1976; • any gross income, in money or money’s worth, derived from the sale of immovable property in the course of any business; and • any other income derived from any other source. Income Tax Bands As from the income year beginning on 1 July 2025, the Mauritius personal income tax regime provides for three tax bands, with the lowest bracket of income (up to MUR500,000 per annum) having a tax rate of 0%. The second bracket (MUR500,001–MUR1 million) attracts a rate of 10%. The highest bracket (above MUR1 million) is subject to a tax rate of 20%. Fair Share Contribution Individuals with a total annual income (including local dividends, which are usually exempt) exceed - ing MUR12 million in an income year are also liable to a “Fair Share Contribution” of 15% on the leviable income in excess of MUR12 million. This is payable at the time of the filing by the individual of their return of income. Dividends or distributions received from entities holding a global business licence, as well as from a foundation or a trust are, however, excluded from the total income considered.
Deductions Personal reliefs, deductions and allowances under the ITA 1995 can only be claimed by resident individuals in an income year. Deductions can also be claimed in relation to an individual’s dependants. Exempt income is listed in the Third Schedule to the ITA 1995 and include, inter alia, dividends paid by a resident company. Estate, Inheritance and Gift Taxes There is no inheritance, succession, estate, donation or gift tax in Mauritius. 2.4 Taxation of Non-Resident Individuals A non-resident is only taxable on all Mauritius-source income, other than exempt income. The types of income are addressed in 2.3 Taxation of Resident Individuals . 2.5 Tax Residence of Legal Entities The rule of tax residence for companies in Mauritius is determined based on the company’s incorporation in Mauritius or the location of the company’s central management and control. A company is considered tax resident in Mauritius if: • it is incorporated in Mauritius; or • its central management and control are in Mauri - tius. However, Section 73A of the ITA 1995 provides that a company incorporated in Mauritius, but centrally managed and controlled outside of Mauritius, may be deemed to be non-resident for tax purposes. For Mauritius tax purposes, trusts and foundations are treated as companies (other than charitable trusts or foundations). A trust is treated as tax resident: • where the trust is administered in Mauritius and a majority of the trustees are resident in Mauritius; or • where the settlor of the trust was resident in Mau- ritius at the time the instrument creating the trust was executed.
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