August 25, 2021

Income Tax Act

There have been many changes in the income Tax Act in relation to Corporate Tax, Personal and Value Added Tax and other taxes.  However, we have listed below some changes in the Corporate Tax and Personal Tax

 

CORPORATE TAX:

 

Additional activities to include the extension of 80% exemption:

Effective as from 1st July 2022, the income derived from the following activities shall beneficiate from 80% exemption:

  • The Investment dealer; and
  • For the leasing of locomotives and trains including rail leasing

 

Income derived from Mauritius 

As from the 1st July 2022, income derived from investment in shares from Mauritius will be considered as Mauritius Source Income. In this respect, dividend from an Authorised Company, who is considered as a non-resident in Mauritius will be considered as a foreign source income.

 

Manufacturing companies engaged in medical, biotechnology or pharmaceutical sector

Where a manufacturing company: -

  • Is engaged in medical, biotechnology or pharmaceutical sector; and
  • Hold an investment certificate issued by the Economic Development board,

it shall, in an income year (effective from the year of assessment commencing 1st July 2022) , be liable to income tax on its chargeable income at the rate of 3%, under specific conditions.

 

Higher Education Institutions set-up in Mauritius

Where a higher education institution registered under the Higher Education Act is set up in Mauritius, it shall, in an income year, (effective from the year of assessment commencing 1st July 2022) be liable to income tax on its chargeable income at the rate of 3%.

 

Extension of the tax holiday for Family Offices from 5 to 10 years

As from the year of assessment commencing from the 1st of July 2022, the Family Offices (Single and Multiple Licences) shall be subject to 10-year tax holiday. (Subject to satisfying substance conditions)

 

Foundations and Trusts

  • The declaration of non-residence has been abolished. In this respect, since the 1st July 2021, Trusts and Foundations will no longer be able to file a declaration of non-residence. For existing Trusts and Foundation before the 30th June 2021, they have a grandfathering period up to the year of assessment 2024/2025.
  • The ‘ Mauritius Revenue Authority’ shall issue a Statement of Practice to that effect

 

PERSONAL TAX

 

RELIEF FOR MEDICAL INSURANCE PREMIUM AND CONTRIBUTION

Medical insurance premiums of up to Rs20,000 for self and first dependent and up to Rs 15,000 for every other dependent.

 

PRIVATE PENSION

An individual who has contributed for an approved personal pension scheme for himself shall be entitled to deduct such amount, up to a maximum of Rs30,000 from his net income.

 

NATIONAL COVID-19 VACCINATION PROGRAMME FUND

A person who has contributed to the Covid-19 vaccination Programme Fund is entitled to deduct such amount from his net income.

 

DONATION

An individual who donates to a charitable institution shall be entitled to deduct such amount up to a maximum of Rs30,000, from his net income.



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