Mauritius

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.
• Essential products, such as noodles, toothpastes, toothbrushes, etc.
• Accommodation costs incurred for a qualifying event that has been approved by the Economic Development Board.

An entity should register for VAT if turnover exceeds MUR 3 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. 

Non-declaration or under declaration of supplies 
The MRA may, in cases of non-declaration or under-declaration of supplies and overstatement of credit for input tax, make assessments in respect of a period beyond 2 years but not exceeding 4 years. 

Foreign supplier to charge VAT 

Foreign suppliers whose taxable turnover exceeds MUR 3 million must appoint a tax representative with a permanent establishment in Mauritius. This representative is responsible for filing VAT returns and remitting payments to the MRA. A recipient is considered to be in Mauritius if at least two of several indicators such as billing address, payment bank location, device geolocation, phone country code, or other relevant commercial information; confirm this. Additionally, foreign suppliers are required to submit VAT returns and a list of taxable supplies electronically.  

VAT on digital or electronic services 
With effect from 1 January 2026, VAT will apply to specified digital or electronic services supplied in Mauritius. Foreign suppliers providing such services will be subject to VAT and will be required to register for VAT in Mauritius regardless of their turnover. They must submit a VAT return and a list of taxable supplies made after each taxable period.  
 
The foreign supplier will not be required to charge VAT if the reverse charge mechanism is applicable. They will also not be required to issue VAT invoices and will not be eligible to claim input VAT. 

Fair Share Contribution

Effective from 1 July 2025 to 30 June 2028, corporates other than banks with annual chargeable income and supplies exceeding 24 million rupees (MUR) will be required to pay a Fair Share Contribution (FSC). The contribution will be 5% of chargeable income for entities subject to the standard 15% tax rate, and 2% for those taxed at the reduced rate of 3%.  
 
The FSC will not apply to companies holding a Global Business Licence, companies exempt from income tax or benefiting from tax holidays, or income that is otherwise exempt from tax. 
 
The FSC payable by a telecommunications company will be adjusted, if applicable, to ensure that the total amount payable of FSC, income tax or AMT, CSR, CCR Levy, and solidarity levy payable by the company does not exceed 35% of its chargeable income. 

Banks will be required to pay a 5% FSC of their total chargeable income, including income derived from transactions with non-residents and Global Business Companies, and an additional 2.5% contribution of chargeable income from domestic operations. 

The total amount of FSC and additional FSC, income tax, CSR, CCR Levy and Special Levy must not exceed 35% of the chargeable income of the bank arising from domestic operations.

Corporates and banks will not be allowed to offset unused tax credits, such as the foreign tax credits against the contribution payable.  

Customs duties

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.

Excise taxes

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 rate 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.

As from 1 July 2026, land transfer tax will increase from 5% to 10% where a non-citizen acquires a residential property from: 

• A citizen, under any of the above Economic Development Board Property Schemes or qualifying apartments; or
• Another non-citizen, in the case of resale of residential properties initially acquired under the above schemes.

Leasehold tax

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).

Registration duty

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.

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

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.

Payroll taxes

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 of 1 September 2020, the pension system under the National Pensions Fund (NPF) was abolished and replaced by the CSG. Every participant and every employer of a participant is liable to pay CSG at prescribed rates depending on their remuneration. A participant means an employee or self-employed person, on a 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.

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.

Other contributions

All employees and employers are also required to contribute to the National Savings Fund (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.