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Mauritius: Personal Taxation

Income Tax

Income is comprehensively defined, including at least the following categories:

  • income from employment, including allowances, bonuses, commissions, gratuities (in cash or in kind);
  • pensions and annuities resulting from past employment; and compensation for loss of office;
  • dividends;
  • interest;
  • rents;
  • business income (calculated much as under the corporate model - see Direct Corporate Taxation for details).

Certain types of income are exempted from income tax, and certain types of expense may be deducted:

  • free travel between Mauritius and another country obtained under an employment contract is not taxed;
  • members of the main professional bodies may deduct the costs of attending seminars, conferences, training courses etc.;
  • a proportion of retirement allowances is exempt;
  • dividends received from 'incentive' companies, from listed companies, or from a company which is a full-rate taxpayer are exempt;
  • many types of interest on Governments borrowings and securities are exempt;
  • the first MR 1m received as a severance payment is exempt.

As well as these exemptions, there are significant personal allowances, including personal and children’s' deductions, earned income relief (15%), retirement scheme premiums, loan interest, and a proportion of any investments made into 'incentive' companies.
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.

Category
Exemption threshold (MR)
Taxpayer with no dependants
300,000
Taxpayer with one dependant
410,000
Taxpayer with two dependants
475,000
Taxpayer with three dependants
520,000
Retired/disabled taxpayer with no dependants
350,000
Retired/disabled taxpayer with one dependant
460,000

A rate of 15% applies to all chargeable income. 

A solidarity tax of 10% on exempt income was introduced in the 2011 Budget for any individual whose total (including exempt) income exceeded MR2m per year. Exempt income includes dividends received from a resident company or a co-operative society, interest on savings and deposits, government securities and Bank of Mauritius Bills. The solidarity tax no longer applies as of 2012.

 

 

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