Employers in Mauritius have several tax responsibilities. These include contributions to the National Pension Fund (NPF), National Savings Fund (NSF), Contribution Sociale Généralisée (CSG), and Training Levy. Additionally, employers are responsible for the Pay As You Earn (PAYE) system and must adhere to reporting and payment deadlines.

National Pension Fund (NPF)

Employers are required to contribute 6% of an employee's basic wage or salary to the NPF. These contributions are generally capped at a ceiling that's periodically adjusted.

National Savings Fund (NSF)

Employers contribute 2.5% of an employee's remuneration to the NSF.

Contribution Sociale Généralisée (CSG)

As of September 2021, the CSG replaced the NPF. Employers are required to contribute an amount determined by applying a percentage to the employee's wage or salary. This percentage varies depending on the employee's total earnings.

Training Levy

Every employer is required to pay a training levy of 1% of the total basic wage or salary of all employees.

Additional Considerations

Employers are responsible for deducting income tax from employee salaries under the PAYE system and remitting it to the Mauritius Revenue Authority. Employers must also file specific returns and make contributions to various funds within deadlines stipulated by the Mauritius Revenue Authority.

Employees in Mauritius are subject to several tax deductions from their salaries. These deductions are part of the Pay As You Earn (PAYE) system and include contributions to the National Pension Fund (NPF), the National Savings Fund (NSF), and the Contribution Sociale Généralisée (CSG). Additionally, employees may make voluntary contributions to pension schemes or other approved savings plans.

Income Tax

Employers are required to withhold income tax (PAYE) from employee salaries and remit it to the Mauritius Revenue Authority (MRA). The tax rate is progressive, meaning that higher earners pay a higher percentage of income tax.

National Pension Fund (NPF)

Employees contribute 3% of their basic wage or salary to the NPF. These contributions are generally capped at a ceiling that's periodically adjusted.

National Savings Fund (NSF)

Employees are required to pay a 1% levy on their wages or salaries, up to a maximum of MUR 187 every month.

Contribution Sociale Généralisée (CSG)

An employee CSG contribution is deducted directly from their salary. The rate varies based on income levels.

Voluntary Contributions

Employees may make voluntary contributions to pension schemes or other approved savings plans. These contributions could be tax-deductible.

Businesses with an annual turnover exceeding MUR 6 million from the supply of goods and services are required to register for VAT. There are also specific registration requirements for certain service providers regardless of turnover. Businesses below the threshold can opt for voluntary VAT registration.

VAT Rates

The standard VAT rate in Mauritius is 15%. Certain essential services, such as financial services and specific educational services, are zero-rated, meaning VAT is charged at 0%. Some services, such as medical and healthcare services, are exempt from VAT, meaning no VAT is charged.

VAT on Imported Services

VAT is levied on imported services under the reverse charge mechanism. This implies that the recipient of the service in Mauritius is responsible for accounting for the VAT due, rather than the foreign service provider.

Invoicing Requirements

VAT-registered businesses must issue VAT invoices for all taxable supplies of services. VAT invoices must contain specific information as prescribed by the Mauritius Revenue Authority (MRA).

VAT Filing and Payment

VAT returns must be filed either monthly or quarterly, depending on turnover. Businesses exceeding MUR 10 million in annual taxable turnover should submit returns monthly. VAT payments are due with the filing of returns.

Special Considerations for Specific Services

Certain categories of services may have specific VAT implications. For instance, specific VAT rules may apply to telecommunication services. Suppliers of electronic services to non-business customers in Mauritius may be required to register for and charge VAT.

Mauritius offers a variety of tax incentives to attract and retain businesses. These incentives range from a low corporate income tax (CIT) rate to sector-specific benefits and investment promotion schemes.

General Tax Incentives

Mauritius boasts a flat corporate income tax (CIT) rate of 15%, offering a competitive business environment. Companies engaged in specific activities may qualify for an 80% exemption on certain types of foreign-sourced income. Businesses can also benefit from accelerated depreciation allowances on qualifying capital assets, reducing their taxable income in the earlier years. Furthermore, businesses can carry forward tax losses for up to 5 years to offset against future profits.

Sector-Specific Incentives

Companies involved in exporting goods are eligible for a reduced CIT rate of 3%. Businesses engaged in research and development, innovative projects, and technology-driven activities may receive tax holidays, exemptions, and other benefits. Companies operating in the manufacturing sector may be granted tax holidays and exemptions on imported equipment and raw materials. Mauritius also offers attractive incentives for financial services companies, including reduced tax rates and exemptions on specific income streams.

Investment Promotion Schemes

Several investment promotion schemes provide additional tax breaks for qualifying businesses. Businesses operating within designated Smart Cities receive tax holidays for an initial 8 years. Freeport operators enjoy tax exemptions on profits and customs duties on imported goods. Additional schemes promote investment in areas like film production, renewable energy, and aquaculture.

Double Taxation Treaties

Mauritius has an extensive network of double taxation treaties that aim to prevent double taxation of income earned in both Mauritius and a treaty partner country. These treaties can offer tax credits, reduced withholding tax rates, and other benefits.