.: MRA

Personal Taxation

1. Tax Rates on Chargeable Income: Individuals

(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	255,000
Category B- An individual with one dependent	365,000
Category C- An individual with two dependents	425,000
Category D- An individual with three dependents	465,000
Category E- A retired person with no dependent	305,000
Category F- A retired person with one dependent	415,000

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, child under the age of 18 or a child over the age of 18 and who is pursuing full-time education or training or who cannot earn a living because of a physical or mental disability.

"Child" means

(a)

an unmarried child, stepchild or adopted child of a person;

(b)

an unmarried child whose guardianship or custody is entrusted to the person by virtue of any other
enactment or of an order of a court of competent jurisdiction;

(c)

an unmarried child placed in foster care of the person by virtue of an order of a court of competent
jurisdiction.

"Retired person" means a person who attains the age of 60 at any time prior to the first day of January of the income year 2011 and who, during that period, is not in receipt of any business income or emoluments other than retirement pension.

Additional exemption in respect of dependent child pursuing undergraduate course.

(a)

Where a person has claimed an Income Exemption Threshold in respect of category B, C, D or F and
the dependent is a child pursuing a non-sponsored full-time undergraduate course at a recognised tertiary educational institution, the person may claim an additional exemption in respect of that child as follows:

(i)

Rs 80,000 - Where the child is pursuing his undergraduate course in Mauritius at an institution recognised by the Tertiary Education Commision; or

(ii)

Rs 125,000 - Where the child is pursuing undergraduate course outside Mauritius at a recognised institution.

(b)

The additional exemption is not allowable:-

(i)

in respect of more than three children;

(ii)

in respect of the same child for more than 3 consecutive years;

(iii)

where the tuition fees, excluding administration and student union fees, are less than Rs 44,500;

(iv)

to a person whose total income (net income plus interest and dividends received) for the income year ending 31 December 2011 exceeds Rs 2 million.

Interest Relief on secured housing loan.

(a)

A person who has contracted a housing loan, which is secured by a mortgage or fixed charge on immoveable property and which is used exclusively for the purchase or construction of his first house, may claim a relief in respect of the interest paid on the loan.

(b)

The relief to be claimed in the EDF is the amount of interest payable in the income year ending 31 December 2011or Rs 120,000, whichever is the lesser. In the case of a couple where neither spouse is a dependent spouse, the relief may be claimed by either spouse or at their option, divide the claim equally between them provided the claim does not, in the aggregate, exceed Rs 120,000.

(c)

The loan must have been contracted on or after 1 July 2006 from a bank, a non-bank deposit taking institution or an insurance company.

(d)

The relief is not allowable where the person or his spouse:-

(i)

is, at the time the loan is contracted, already the owner of a residential building;

(ii)

derives in the income year ending 31 December 2011, total income (net income plus interest and
dividends received) exceeding Rs 2 million;

(iii)

has benefitted from any new housing scheme set up on or after 1 January 2011 by a prescribed
competent authority.

(e)

The relief is allowable for 5 consecutive years only as from January 2011.

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 255,000; 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 31 March together with a remittance of the amount of tax payable, if any, in accordance with the return.

6. Penalty

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.

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.

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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