Value-added tax (VAT)
VAT is charged by VAT-registered entities at the standard rate of 15% on all goods and services supplied by them in Mauritius (except those taxed at 0%), other than the following exempt supplies (not an exhaustive list):
- Wheat and cereal flours (excluding wheat flour).
- Medical, hospital, and dental services, including clinical laboratory services, services provided in a health institution, and veterinary services.
- Educational and training services provided by institutions approved by the Mauritius Qualification Authority.
- Sale or transfer of building for residential purpose.
- Banking services, except:
- services provided to merchants accepting credit/debit card
- services in respect of safe deposit locker, and issue and renewal of credit/debit cards
- services for keeping and maintaining customer’s accounts, and
- services supplied by a bank holding a banking licence under Banking Act 2004 in respect of its banking transactions with non-residents and corporations holding a Global Business Licence.
An entity should register for VAT if turnover exceeds MUR 6 million a year. However, certain service providers (e.g. accountants and auditors, attorneys and solicitors, consultants, surveyors, valuers) should register for VAT irrespective of their turnover.
VAT-registered persons with annual taxable turnover exceeding MUR 10 million should submit their VAT return monthly and electronically by the end of the month following the end of the taxable month. Otherwise, VAT return filing is completed quarterly (i.e. within 20 days following the end of a taxable quarter). The taxable quarter is a period of three months ending at the end of March, June, September, or December. Also, where the VAT-registered persons are filing pay-as-you-earn (PAYE) returns electronically under the Income Tax Act (ITA), they are required to file the VAT returns electronically by the end of the month following the taxable period.
Customs duty is levied on commodities imported into Mauritius. The rate of duty applicable is the rate in force under the Customs Tariff Act at the time the bill of entry is validated at the Customs.
A number of exemptions and concessions are available to industries, organisations, and persons under the Customs Tariff Act.
An excise duty is levied at the time of importation on selected commodities, which includes spirits, vehicles, and petroleum products at corresponding prescribed rates. A levy is also chargeable on some specified excisable goods, whether the goods are for home consumption or not, at corresponding prescribed rates.
Campement site tax
Per the Land (Duties and Taxes) Act, every owner of a campement site situated in a specified zone is subject to an annual tax known as the campement site tax, varying between MUR 2 to MUR 6 per square metre.
The tax shall be payable to the authorised officer on or before 31 July in every year.
Land transfer tax
Per the Land (Duties and Taxes) Act, land transfer tax is levied on the transfer of land and is payable by the transferor at the rate of 5%.
Land transfer tax is also payable at the above rates by the transferor upon transfer of the shares of a company owning immovable properties, based on the value of shares or property, whichever is the lower.
The following transactions are not subject to land transfer duty (non-exhaustive list):
- A transfer of immovable property from ascendant to descendant (or vice versa).
- A transfer of immovable property or shares between companies forming part of a group of companies, as defined in the Companies Act 2001.
- A transfer of immovable property where such transfer takes place between companies having the same shareholders for the sole purpose of merging.
Per the Land (Duties and Taxes) Act, leasehold tax is levied on the registration of a deed of transfer of leasehold rights in state land. The leasehold tax is levied on the open market value of the leasehold right at the time of transfer at the rate of 20% and is payable by the transferor and transferee in equal proportion (i.e. 10% each).
The Registration Duty Act provides, among others, for a duty at an effective rate of 5% of the sum of money paid as a condition of an exchange of immovable property, or a division in kind of immovable property, where such sum does not exceed MUR 100,000.
The transfer of shares of a company other than those listed on the Stock Exchange of Mauritius or traded on the secondary market is subject to registration duty if the company holds immovable property.
Stamp duty is levied and paid to the Registrar General on every document at the time of registration, transcription, inscription, or erasure of inscription. Stamp duty varies from MUR 25 to MUR 1,000.
Every employer has to register with the MRA as an employer and has to withhold income tax from the emolument of the employee at the time the emolument is made available to the employee.
The employer has to remit the amount withheld electronically on or before the end of the month immediately following the month in which the tax was withheld.
Failure to comply with the above entails a penalty of 5% of the unpaid tax and an interest of 1% per month or part of the month during which the tax remained unpaid.
Social security contributions
Contribution Sociale Generalisee (CSG)
In the Finance Bill 2020, as from 01 September 2020, the pension system under the NPF is being abolished and replaced by CSG. Every participant and every employer of a participant are liable to pay CSG at prescribed rates depending on their remuneration. Participants means an employee or self-employed, on full time or part time basis but does not include a public sector employee.
The rate of contribution applicable is shown in the table below.
|Category of employee||Rate applicable on the basic wage or salary of the employee and to be deducted from the wage or salary of the employee||Rate applicable on the basic wage or salary of the employee and payable by the employer|
|An employee, other than a Public Sector employee, earning a basic wage or salary NOT exceeding Rs 50,000 in a month||1.5 per cent||3 per cent|
|An employee other than a Public Sector employee earning a basic wage or salary exceeding Rs 50,000 in a month||3 per cent||6 per cent|
|Public Sector employee earning a basic wage or salary not exceeding Rs 50,000 in a month||Not applicable||4.5 per cent|
|Public Sector employee earning a basic wage or salary exceeding Rs 50,000 in a month||Not applicable||9 per cent|
|An employee who is in the domestic service earning a basic wage or salary NOT exceeding Rs 3,000 in aggregate in a month, from one or more employers||Not applicable||3 per cent|
Failure to comply with the above entails a penalty of 10% of the unpaid tax and an interest of 1% per month or part of the month during which the tax remained unpaid.
All employees and employers are also required to contribute to the NSF at the rate of 1% and 2.5% respectively, capped to a ceiling. Every employer is required to pay training levy at the rate of 1% of the total basic wage or salary of its employees.