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Personal Taxation

 

  1. Tax Rates on Chargeable Income:Individuals
  2. Calculation of Chargeable Income
  3. Income Exemption Threshold
  4. Income Tax forms for individuals
  5. Due Date for submission of Annual Return & Payment of Tax
  6. Penalty
    1. Tax Rates on Chargeable Income:Individuals

      Flat Rate of 15% on chargeable income.

       

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    2. Calculation of Chargeable Income

      Gross Income includes salaries, wages, annuity, pension, income from business, income from property, foreign dividends, royalty, interest.

       

      Allowable deductions include expenditure incurred in the production of income, losses, bad debts, annual allowance (instead of depreciation).

       

      Chargeable Income= Gross Income - Allowable Deductions - Income exemption threshold

       

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    3. Income Exemption Threshold

      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.

      The income exemption threshold in respect of income year ending 31 December 2013 is as follows :

       

      Category Amount (Rs)
      Category A- An individual with no dependent 270,000
      Category B- An individual with one dependent 380,000
      Category C- An individual with two dependents 440,000
      Category D- An individual with three dependents 480,000
      Category E- A retired / disabled person with no dependent 320,000
      Category F- A retired / disabled person with one dependent 430,000

       

      An individual is not entitled to claim an income exemption threshold in respect of :

      1. Category B or Category F, where the total income of the dependent exceeds Rs 110,000;
      2. Category C, where the total income of his second dependent exceeds Rs 60,000;
      3. Category D, where the total income of the third dependent exceeds Rs 40,000.

       

      If a person claims in an income year, an income exemption threshold in respect of Category B, Category C, Category D or Category F, the spouse of that individual can claim in that income year an income exemption threshold only in respect of Category A or Category E whichever is applicable.

       

      "Dependent" means either a spouse, a child under the age of 18 or a child over the age of 18 and who is pursuing full time education or  training or who cannot earn a living because of physical or mental disability.

       

      Child means

      1. an unmarried child, stepchild or adopted child of a person;

         

      2. an unmarried child whose guardianship or custody is entrusted to the person by virtue of any other enactment or of an order of a court of competent jurisdiction;

         

      3. an unmarried child placed in foster care of the person by virtue of an order of a court of competent jurisdiction.

       

      "Retired person" means a person who attains the age of 60 at any time prior to the first day of January of an income year and who, during that period, is not in receipt of any business income or emoluments other than retirement pension.

       

      Additional exemption in respect of dependent child persuing undergraduate course

      1. Where a person has claimed an Income Exemption Threshosld in respect of category B, C, D or F and the dependent is a child persuing a non-sponsored full-time undergraduate course at a recognised tertiary educational institution, the person may claim an additional exemption in respect of that child as follows:
        1. Rs 80,000 - Where a child is persuing his undergraduate course in Mauritius at an institution recognised by the Tertiary Education Commision; or
        2. Rs 125,000 - Where a child is persuing undergraduate course outside Mauritius at a recognised institution.

         

      2. The additional exemption is not allowable:
        1. in respect of more then three children;
        2. in respect of the same child for more than 3 consecutive years;
        3. where the tuition fees, excluding administration and student union fees are less than Rs 44,500;
        4. to a person whose total income (net income plus interest and dividends received) for the income year ending 31 December 2011 exceeds Rs 2 million.

       

      Interest Relief on secured housing loan

      1. A person who has contracted a housing loan, which is secured by a mortgage or fixed charge on immovable property and which is exclusively for the purchase or construction of his first house, may claim a relief in respect of the interest paid on the loan.

         

      2. The relief to be claimed in the EDF is the amount of interest payable in the income year ending 31 December 2012 or Rs 120,000, whichever is lesser.In the case of a couple where neither spouse is a dependent spouse, the relief may be claimed by either spouse or at their option, divide the claim equally between them provided thet the claim does not, in the aggregate, exceeds Rs 120,000.

         

      3. The loan must have been contracted on or after 1stjuly 2006 from a bank, a non-bank deposit taking institution or an insurance company.

         

      4. The relief is not allowable where the person or his spouse:
        1. is, at the time the loan is contracted, already the owner of a residential building;
        2. derives in the income year ending 31st December 2011, total income (net income plus interest and dividend received) exceeding Rs 2 million;
        3. has benefitted from any new housing scheme set up on or after 1st January 2011 by a prescribed competent authority.

         

      5. The relief is allowable for 5 consecutive years only as from January 2011.

         

      6. Relief for Medical Health Insurance Premium :

         

        A person may claim relief for premium payable in respect of medical or health insurance policy contracted for himself or his dependent in respect of whom Exemption Threashold has been claimed. The relief is limited to the amount of premium payable for the income year up to a maximum of :

        • Rs 12000 for self ;
        • Rs 12000 for first dependent;
        • Rs 6000 for second dependent;
        • Rs 6000 for third dependent.

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    4. Income Tax forms for individuals

       

      IT FORM - 1A

      Applicable to an individual in receipt of emoluments only. This return should be filled in by every person who:

      1. is a registered person (i.e. has been allocated a Tax Account Number); or
      2. has a chargeable income, whether or not he is a registered person.

       

      IT FORM - 1

      Applicable to an individual deriving income from trade, business, profession, agriculture, rents, emoluments and other sources.

      This return should be filled in by an individual who :

       

      1. Derives :
        1. Net income exceeding Rs 270 000 per year
        2. Gross Emoluments from business exceeding Rs 2 million per year
        3. Emoluments in respect of which tax has been withheld
        4. Income which has been subject to tax deduction at source

         

      2. Acquires :
        1. an immovable property , the cost of which including the cost of construction of any building or structure thereon, exceeds Rs 5 million in a year

           

        2. motor vehicles costing more than Rs 2 million in respect of which registration duty paid is more than Rs 75 000

           

        3. a pleasure craft as defined in the Tourism Authority Act, the cost of which , including the cost of its engine exceeds one million rupees.

           

      3. pays contribution to National Pension Fund (NPF) and National Savings Fund to the Director-General of MRA

         

      4. has a chargeable income

       

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    5. Due Date for submission of Annual Return & Payment of Tax

      The return of income (IT Forms 1A or 1) should be filled in and submitted to the MRA not later than 31 March together with a remittance of the amount of tax payable, if any, in accordance with the return. Where return and tax if any is paid electronically, an extended delay up to 15th of April is applicable.

       

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    6. Penalty
      1. Penalty for late submission of annual return of income

        Where an individual fails to submit his annual return of income, he is liable to a penalty of Rs 2,000 per month or part of the month up to a maximum penalty of Rs 20,000.

         

      2. Penalty for late payment of tax

        Where an individual fails to pay the tax in accordance with his annual return of income by the due date, he is liable to a penalty of 5% of the amount of the tax, excluding any penalty.

         

      3. Interest for late payment of tax

        Where an individual fails to pay any tax by the due date, he is liable, in addition to any penalty, to pay interest at the rate of 1% per month or part of the month during which the tax remains unpaid.

       

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