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Mauritius: Domestic Corporate Taxation

Calculation of Taxable Base

Expenditure and losses are generally allowable in the year in which they are incurred to the extent that they are incurred in the production of gross taxable income. The following are some particular types of deduction that are permitted in addition:

  • Capital and investment allowances based on actual cost at varying rates depending on the type of asset;
  • Interest costs;
  • Exchange losses from trading;
  • Reasonable directors' remuneration;
  • Bad and irrecoverable debts;
  • Approved pension contributions;
  • Royalties;
  • Past trading losses;
  • Rent premiums;
  • 200% of overseas marketing costs for tourist or export businesses;
  • Local taxes.

The following are some particular types of deduction that are not permitted:

  • Depreciation;
  • Exchange losses on capital assets (added to cost base);
  • Debenture interest, when the debentures are issued in proportion to shareholdings (treated as distributions);
  • Excessive fees paid to directors or their families (treated as distributions);
  • Corporate income and capital gains (morcellement) taxes; land transfer tax;
  • Provisions;
  • Entertainment expenses;
  • Carried back losses.

There is group relief only to the extent that an 'incentive' company can transfer losses to its parent; and there are some special arrangements in the sugar industry.

 

 

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