Corporate Taxation

 

  1. Bodies of persons subject to Corporate Tax
  2. Tax Rates on Chargeable Income of companies
  3. Calculation of Chargeable Income
  4. Corporate Social Responsibility (CSR)
  5. Doubt on Interpretation
  6. Amended Return
  7. Due dates for submission of Annual Return & APS Statement and Payment of tax
  8. FAQs on APS
  9. Penalty (including penalty for loss overclaimed & income tax refund overclaimed)
  10. Income Tax Forms for Companies

  1. Bodies of persons subject to Corporate Tax

    Companies, Trusts, Trustees of Unit Trust Schemes and Non-resident Sociétés (Partnerships).

    Trusts, Trustees of Unit Trust Schemes and Non-resident Sociétés are treated as companies for tax purposes.

     

    Go top

     

  2. Tax Rates on Chargeable Income of companies

    Year of assessment commencing on 1 July 2008 up to 30 June 2017 : 15%

     

    As from 01 July 2017 :
    • Companies engaged in export of goods : 3%
    • Others : 15%

     

    Go top

     

  3. Calculation of Chargeable Income

    The chargeable income of a body of persons subject to corporate tax is calculated as follows:

    Chargeable Income = Gross Income - Allowable Deductions

     

    Go top

     

  4. Corporate Social Responsibility (CSR)

    Content will be available soon.

     

  5. Doubt on Interpretation

    When a company is submitting its return of income and is in doubt regarding the interpretation of the law or treatment in respect of any matter to be included in its return of income, it may draw the attention of the Director General by specifying the doubt in its return.

     

    Where such doubt has been specified, the company will be treated as having acted in good faith and no penalty on late payment would be imposed in respect of any additional tax resulting from the adjustment relating to the doubt.

     

    However, when such doubt has not been specified, any additional tax from the adjustment relating to the doubt will attract penalty on late payment at the rate of 5%, except for companies having an annual turnover not exceeding 10million rupees where the penalty would be at the rate of 2%,

     

    Go top

     

  6. Amended Return

    A company is not allowed to submit an amended return after 3 years except where it is submitted in respect of undeclared or under-declared income.

     

    Amended return should be submitted electronically, stating the reason/s for each amendment made to the previous return.

     

    A company submitting an amended return would be deemed to have submitted that return on the date of submission of the new return. Accordingly, any payment of tax arising from the amended return would attract penalty on late payment of 5%, together with penalty of late-submission of Rs 2,000 per month upto a maximum of Rs 20,000.

     

  7. Due dates for submission of Annual Return & APS Statement and Payment of Tax

    Every company, whether or not it is a taxpayer, is now required to file its annual return not later than six months from the end of the month in which its accounting year ends.However, where a company's accounting year ends on 30 June, the due date for submission of return and paymentof tax is 2 days, excluding saturdays and public holidays, before the end of December.

     

    Besides the annual return, companies are also required to file, under the Advance Payment System(APS), quarterly APS statements and to pay tax in accordance thereof. However, company with a turnover below the threshold of Rs 10 million per annum are exempted from the requirement to file quarterly returns and pay tax under APS.

     

    All companies deriving gross income and exempt income exceeding Rs 10 million have the legal obligation to file annual returns and pay tax electronically. Failure to file electronic returns carries a penalty of 20 per cent of the tax payable (maximum Rs 100 000) or Rs 5000 where no tax liability is declared in the return.

     

    Companies may file return / statements and pay tax electronically to MRA using the Mauritius Network Services (MNS) system. Relevant application forms are available on the MRA website.Alternatively, companies may request an eFiling Service Centre to do the electronic filing on their behalf. A list of approved eFiling Service Centre is also available on MRA website. Companies filing their returns in Mauritian rupees may use the efiling facility available on the MRA website.

     

    FAQs on APS

     

    Go top

     

  8. Penalty (including penalty for loss overclaimed)

    Late submission of return - a penalty of Rs 2,000 per month or part of the month up to a maximum of Rs 20,000.

     

    Late payment of tax - a penalty of 5% of the amount of tax excluding any penalty and interest at the rate of 0.54% per month or part of the month during which the tax remains unpaid.

     

    Where a company does not fill in all the parts of the return, it shall be deemed NOT to have submitted a return.

     

    Penalty for Loss overclaimed

     

    A company, which has claimed a loss in excess of the actual loss incurred or brought forward, would be liable to a penalty of up to 5% of the loss overclaimed. The penalty of 5% shall be offset against the amount of loss to be carried forward.

     

    Penalty on Income Tax refund overclaimed

     

    A company, which has overclaimed a refund of the income tax would be liable to a penalty of up to 25% on the amount of the excess refund overclaimed.

     

    Go top

     

  9. Income Tax forms for companies

    IT FORM - 3

     Applicable to a company, including a non-resident société.

    This return, duly filled in, should be submitted by the due date by every company, whether or not it has a chargeable income.

     

    IT FORM - 3A

     Applicable to a trust and unit trust

    This return, duly filled in, should be submitted by the due date by every trust, whether or not it has a chargeable income.

    Go top