Personal Taxation

1. Tax Rates on Chargeable Income: Individuals

Income year commencing on - 
Chargeable Income
Rate of tax (%)
(a) 1 July 2006 
 Chargeable income relating to net income other than income from interest -
  On the first 500,000 rupees
15
  On the remainder
22.5
  Chargeable income relating to income from interest
15
(b) 1 July 2007 onwards
 Chargeable income relating to net income including income from interest
15
 
 

2. Calculation of Chargeable Income

Gross Income
less     Allowable Deductions
less     Income exemption threshold

=          Chargeable Income

Gross Income includes salaries, wages, annuity, pension, income from business, income from property, foreign dividends, royalty, interest.
Allowable deductions include expenditure incurred in the production of income, losses, bad debts, annual allowance (in lieu of depreciation).
3. Income Exemption Threshold 

An individual who is resident in Mauritius is entitled to an income exemption threshold which he can deduct from his income to arrive at his chargeable income, if any.

The income exemption threshold in respect of income year ending 30 June 2009 is as follows -
Category
Amount (Rs)
Category A- An individual with no dependent
240,000
Category B- An individual with one dependent
350,000
Category C- An individual with two dependents
410,000
Category D- An individual with three dependents
450,000
Category E- A retired person with no dependent
285,000
Category F- A retired person with one dependent
395,000

An individual is not entitled to claim an income exemption threshold in respect of -

(a)
 Category B or Category F, where the total income of the dependent exceeds Rs 110,000;
(b)
 Category C, where the total income of his second dependent exceeds Rs 60,000;
(c)
 Category D, where the total income of the third dependent exceeds Rs 40,000.

 
If a person claims in an income year, an income exemption threshold in respect of Category B, Category C, Category D or Category F, the spouse of that individual can claim in that income year an income exemption threshold only in respect of Category A or Category E whichever is applicable.
"Dependent" means either -
-
a spouse;
-
a child under the age of 18; or
-
a child over the age of 18 and who is pursuing full time course at an educational institution or a training institution or who cannot earn a living because of physical or mental disability.
"Retired person" means a person who attains the age of 60 at any time prior to the first day of July of an income year and who, during the income year, is not in receipt of any business income or emoluments other than retirement pension.


4. Income Tax Forms For Individuals

IT FORM - 1A

Applicable to an individual in receipt of emoluments only. This return should be filled in by every person who -

(i) is a registered person (i.e. has been allocated a Tax Account Number); or

(ii) has a chargeable income, whether or not he is a registered person.

IT FORM - 1

Applicable to an individual deriving income from trade, business, profession, agriculture, rents, emoluments and other sources.

This return should be filled in by an individual who -

(i) is a registered person;

(ii) owns more than one residence or one or more immoveable properties acquired for an aggregate price exceeding Rs 2 million or on which expenditure exceeding Rs 2 million has been incurred for the construction of a building or any other structure;

(iii) owns a car with an engine capacity exceeding 2000c.c.;

(iv) owns a pleasure craft as defined in the Tourism Act 2004;

(v) is owner of a residential property and whose total income exceeds Rs 240,000; or

(vi) has a chargeable income.

5. Due Date for submission of annual return and payment of tax

The return of income (IT Forms 1A or 1) should be filled in and submitted to the MRA not later than 30 September together with a remittance of the amount of tax payable, if any, in accordance with the return.

6. Penalty

a.

Penalty for late submission of annual return of income

Where an individual fails to submit his annual return of income, he is liable to a penalty of Rs 2,000 per month or part of the month up to a maximum penalty of Rs 20,000.
b.

Penalty for late payment of tax

Where an individual fails to pay the tax in accordance with his annual return of income by the due date, he is liable to a penalty of 5% of the amount of the tax, excluding any penalty.
c.

Interest for late payment of tax

Where an individual fails to pay any tax by the due date, he is liable, in addition to any penalty, to pay interest at the rate of 1% per month or part of the month during which the tax remains unpaid.
   
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