New regulations made under the income tax act intercontinental. In the same vein, the financial services commission fsc, the regulator for global businesses in mauritius, issued circular letters on the 12. Mauritius amends personal income tax provisions under 2018 finance act executive summary this alert summarizes the main changes made by the finance miscellaneous provisions act 2018 fmpa 2018 to the personal taxation of individuals under the income tax act ita 1995. Mra the income tax act 91995 please refer to endnotes at appendix 1 page 9 of 402 5.
The mauritius revenue authority act 2004 act 332004 proclaimed by proclamation no. The consolidated income tax act is available, in a pdf. Income from employment duties performed in mauritius is deemed to have been derived from mauritius, even if the related remuneration is received outside mauritius. All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign income and assets and. What is the key feature of the amendment new delhi. File income tax, get the income tax and benefit package, and check the status of your tax refund. On 16 august 2019, the mauritius government issued the income tax amendment no. Mra the income tax act 1995 please refer to endnotes at appendix i page 7 of 288 7 subpart c returns 112.
Enacted by the parliament of mauritius, as follows part i preliminary 1. Mra the income tax act 1995 please refer to endnotes at appendix i page 9 of 288 9 an act to amend and consolidate the law relating to income tax. This page provides mauritius personal income tax rate actual values, historical data, forecast, chart, statistics, economic calendar and news. Conclusiveness of assessment part xi recovery of tax 6. Short title this act may be cited as the income tax act 1995. A resident is defined in the income tax act as an individual who is normally domiciled in mauritius unless permanent domicile is outside mauritius, or has lived in mauritius for a period of 183 days or. Application of act part ii liability to income tax 4. Taxation annual rates for 201718, employment and investment income, and remedial matters act 2018. International taxation double taxation avoidance agreements. Short title this act may be cited as the value added tax act 1998. Mauritius amends personal income tax provisions under 2018 finance act executive summary this alert summarizes the main changes made by the finance miscellaneous provisions act 2018 fmpa. Income tax holiday the officers must be employed by cis managers and asset management companies holders of an asset management licence issued by the fsc mauritius under section 14 of the financial services act 2007, provided they satisfy the following conditions.
Finance act 2019 7 corporate tax key measures presumptive tax on small enterprise effective from 1 july 2020, a small enterprise may irrevocably elect to pay a presumptive tax at the rate of 1% of its. The income tax act will be amended to set out rules for. The accounting profits amount to less than 10% of its operating costs for the tax period. India and mauritius are set to begin a fresh round of negotiations to amend their double tax avoidance agreement dtaa to ensure. Income tax act 2007 viewing now as at 01 january 2020. The income tax act 1995 economic development board mauritius. Calculate business or professional income, get industry codes, and report various income types. This implies that the ciga requirement now falls under the purview of the. Enacted by the parliament of mauritius as follows part i preliminary 1.
Income tax holiday the officers must be employed by cis managers and asset management companies holders of an asset management licence issued by the fsc mauritius under section 14 of the. Among the changes brought about by the finance miscellaneous provisions act 2019, global business companies gbcs shall now be required to carry out their core income generating activities ciga in, or from, mauritius, as required under the income tax act. The incentives are outlined in the income tax act, the customs act, and the value added tax act. The tax rate in the country of residence of the cfc is more than 50% of the tax rate in mauritius. Mauritius applies investment incentives uniformly to both domestic and foreign investors. The income tax act regulations made by the minister under. The antiavoidance provisions of the mauritius income tax act. In line with the ongoing tax reforms in mauritius, the income tax regulations have also been amended to include, among others, details of the conditions to qualify for the 80% partial tax exemption, the application of the deemed foreign tax credit. Further clarifications have also been provided in the finance act. The income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. In line with the ongoing tax reforms in mauritius, the income tax regulations have also been amended to include, among others, details of the conditions to qualify for the 80% partial tax exemption, the. The main income tax legislation in mauritius is the income tax act 1995 as amended by subsequent finance acts.
An act to make provision for the charge, assessment and collection of income tax, for the ascertainment of the income to be charged and for matters incidental thereto. Among the changes brought about by the finance miscellaneous provisions act 2019, global business companies gbcs shall now be required to carry out their core income generating activities ciga. Mauritius amends personal income tax provisions under 2018. According to the finance act, the statement of assets and liabilities will only be required to be filed by mauritian citizen who are resident in mauritius who derive net income and exempt income in excess of. Tax times october 2018 regulatory and tax updates for. Mauritius budget highlights 201920 9 corporate tax banking special levy on banks income derived by banks from gbc will be exempted from the special levy imposed on bank revenue under the value. Services tax services advisory consulting practice advisory deals practice assurance. The income tax act 1995 consolidated version arrangement of sections part i preliminary section 1. The changes under the income tax act the act take into account action 5 of the organisation for economic cooperation and development oecdg20. Exempt body of persons and exempt income 1 part iii. The mra determined that such a sale would not be exempt but be subject to income tax withheld at source at 15%.
Any future dividend income of the cfc that is subsequently included in the tax base of the mauritian. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. The above tax rates and tax treatment are subject to any double taxation agreement between mauritius and the foreign country where the payee is resident. Mauritius personal income tax rate 20042020 data 2021. A tax resident in mauritius can benefit from the income tax threshold exemption iet which starts at rs. The internet version of this act is for information purposes only. Income tax and vat acts online the income tax act, 1962, valueadded tax act, 1991 and other tax acts may be accessed on the sars website. There shall be regarded as taxes on income all taxes imposed on total income or on elements of income. Finance act 2019 7 corporate tax key measures presumptive tax on small enterprise effective from 1 july 2020, a small enterprise may irrevocably elect to pay a presumptive tax at the rate of 1% of its gross income after offsetting any tax deducted at source. This depends on the category of the individual, including how many dependents the individual has. The above tax rates and tax treatment are subject to any double taxation agreement between mauritius and the foreign country where the. Corporate and personal taxes are embodied under one heading of income tax and are payable by all resident companies and individuals on nonexempt income derived from mauritius and from other sources. Income tax holiday financial services commission mauritius. On 7 september 2019, the mauritius revenue authority mra issued an income tax ruling in respect of redemption of premiums from the prematurity sale of nonconvertible secured debentures.
A taxpayer who gets caught under part vii of the mauritius income tax act is subjected to a corrective measure only in the form of payment of the amount of tax that would have been due in the. A resident is defined in the income tax act as an individual who is normally domiciled in mauritius unless permanent domicile is outside mauritius, or has lived in mauritius for a period of 183 days or more in an income year or has lived in mauritius for an aggregate period of 270 days in an income year and the 2 preceding income years. As of 1 july 2018, the tax rate of 15% will be reduced to 10% on annual net income derived by an individual of up to 650,000 mauritian rupees mur. Mra the income tax act 1995 please refer to endnotes at appendix i page 10 of 327 10 an act to amend and consolidate the law relating to income tax. Mauritius enacts changes to tax regime for corporations with.
All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign income and assets and imposition of tax act, 2015 central boards of revenue act, 1963 charitable and religious trusts act, 1920 charitable endowments act, 1890. Income derived by companies engaged in ship and aircraft leasing. The income tax act 1995 economic development board. Mauritius issues regulations on substance requirements and. Jul 01, 2019 on 16 august 2019, the mauritius government issued the income tax amendment no. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email. Corporate and personal taxes are embodied under one heading of income tax and are. The income tax foreign tax credit regulations 1996. In the 20182019 national budget, a number of incentives were implemented to attract investors to mauritius. Income tax act 58 of 1962 south african government.
Application of part ivc of mauritius revenue authority act 7. The accounting profits are not more than eur750,000, and nontrading income is not more than eur75,000. The income tax act regulations made by the minister. In the same vein, the financial services commission fsc, the regulator for global businesses in mauritius, issued.
Personal, business, corporation, and trust income tax. According to the finance act, the statement of assets and liabilities will only be required to be filed by mauritian citizen who are resident in mauritius who derive net income and exempt income in excess of mur 15 million or who owns assets whose costs exceed mur 50 million. Mauritius issues regulations on substance requirements. Sep 10, 2018 a taxpayer who gets caught under part vii of the mauritius income tax act is subjected to a corrective measure only in the form of payment of the amount of tax that would have been due in the absence of the avoidance arrangement, but the consequences set out in the same section do not result in any disincentive to the taxpayer that would ensure the prevention of the occurrence of such type of. The personal income tax rate in mauritius stands at 15 percent. Other agreements incometax double taxation relief aden rules, 1953 present position thereunder these rules being consistent with the corresponding provisions of the 1961 act. Amendments brought to the income tax act 1995 below are the amendments brought to the income tax act 1995 following the budget 2016. Mauritius budget highlights 201920 9 corporate tax banking special levy on banks income derived by banks from gbc will be exempted from the special levy imposed on bank revenue under the value added tax act special levy imposed on banks having operating income exceeding mur1. Finally, after about 33 years of the india mauritius tax treaty coming into force, the treaty has now been amended. Income tax act 2007 no 97 as at 25 march 2020, public act. The mauritius revenue authority act 2004 act 332004.