Home e-Services Individual Negative Income Tax

Negative Income Tax (NIT)

  1. Leaflet
  2. What is NIT?
  3. Who is eligible?
  4. How do I apply for NIT?
  5. What is the allowance payable?
  6. What should an individual do to start benefiting from NIT?
  7. When will payment be effected?
  8. What if an employee does not receive his NIT payment?
  9. What amounts are included in the earnings of an individual?
  10. Support Services

Click here to apply for NIT

 

What is NIT?

 

The Negative Income Tax (NIT) is a system where, instead of paying taxes, employees deriving basic salary not exceeding Rs 9,900 per month, receive financial support from Government.

 

The NIT system, introduced by the Government in its budget 2017/18, is effective as from 1st July 2017.

 

Who is eligible?

 

Eligibility for Negative Income Tax

 

  • A Mauritian Citizen.
  • An employee whose basic salary is less than or equal to Rs 9,900 per month, provided that his total earnings (excluding travelling) in that month does not exceed Rs 20,000.
  • The net income of the individual or his spouse, excluding dividend and interest in the current year, does not exceed Rs 390,000.
  • An employee who works for a minimum of 24 hours in a week, over at least 3 days.
  • An employee whose employer has paid contributions on his behalf to the NPF and the NSF in respect of the month for which NIT is being claimed.

 

Employees who are not eligible for NIT Allowance

 

  • A non-Mauritian Citizen
  • A self-employed
  • An employee deriving a basic salary above Rs 9,900 or whose total earnings in that month (excluding travelling) exceeds Rs 20,000.
  • The net income of the individual or his spouse, excluding dividend and interest in the current year, exceeds Rs 390,000.
  • An employee working for LESS than 24 hours or 3 days per week.
  • An employee whose employer has not paid contributions on his behalf to the NPF and the NSF in respect of the month for which NIT is being claimed.

 

How do I apply for NIT?

 

All application must be made online on the MRA's website, Click here to apply

 

Information required to fill the online application form

 

  • NIC Number of applicant and spouse (if married)
  • Employer’s Registration Number (ERN) as shown on payslip or other documents, and
  • Bank Account Number of applicant

 

What is the allowance payable?

 

The allowance payable per month is as follows:

 

Individual deriving the following earnings in a monthAllowance
Less or equal to Rs 5000 Rs 1000
Between Rs 5001 and Rs 7000 Rs 800
Between Rs 7001 and Rs 9000 Rs 500
Between Rs 9001 and Rs 9750 Rs 250
Between Rs 9751 and Rs 9900 Rs 100

 

The MRA will credit the NIT to the employee’s bank account on a monthly basis.

 

What should an individual do to start benefiting from NIT?

 

Nothing, except to give his bank account details to his employer, if he has not already done so. The MRA will effect payment of NIT based on information provided by the employer.

 

When will payment be effected?

 

Negative Income Tax will be paid on a MONTHLY BASIS.

 

What if an employee does not receive his NIT payment?

 

He may call the MRA Help Desk on 207 6000 to inquire and if need be, fill an NIT application form

 

What amounts are included in the earnings of an individual?

 

The monthly earnings of an individual includes all salaries, wages, overtime pay, leave pay and other allowances in money or money’s worth derived from employment but excludes travelling allowance and end of year bonus. Any annuity, pension and basic retirement pension received should also be included.

 

Support Services

 

For any additional information regarding Negative Income Tax, call on MRA’s Help Desk 207 6000, or visit us at MRA’s Head Office, Ehram Court, Cnr Mgr. Gonin & Sir Virgil Naz Streets, Port Louis.