Understanding corporate income tax and other business taxes in Mauritius is crucial for companies operating within the country. Alongside corporate income tax, businesses should be aware of other taxes, including VAT, PAYE, social security contributions, and customs duties. It is advisable to consult with a tax professional or refer to the official website of the Mauritius Revenue Authority (MRA) for the most accurate and up-to-date information. By fulfilling their tax obligations, businesses can operate in compliance with Mauritian tax laws and contribute to the growth and development of the country's economy while benefiting from its business-friendly environment and strategic location.
Corporate Income Tax:
Mauritius imposes corporate income tax on the profits earned by companies operating within its jurisdiction. The corporate income tax rate in Mauritius is progressive, based on the level of taxable income. As of the knowledge cutoff date in September 2021, the tax rates are as follows:
- For companies with annual taxable income up to MUR 3 million: 15%
- For companies with annual taxable income between MUR 3 million and MUR 10 million: 17.5%
- For companies with annual taxable income exceeding MUR 10 million: 15%
Types of Business Taxes in Mauritius:
- Value Added Tax (VAT): Mauritius implemented a Value Added Tax (VAT) system in 1998. The standard VAT rate in Mauritius is currently set at 15%. However, certain goods and services may be subject to reduced rates of 5% or zero-rated. VAT is applicable to most goods and services, with exemptions for specific categories.
- Pay As You Earn (PAYE): Employers in Mauritius are responsible for deducting Pay As You Earn (PAYE) from their employees' wages. The rates for PAYE vary based on the employee's income and are progressive.
- Social Security Contributions: Employers and employees in Mauritius are required to make social security contributions. These contributions fund various social security benefits, including pensions, healthcare, and unemployment benefits. The rates for social security contributions vary based on the employee's salary and specific circumstances.
- Customs Duties: Customs duties are levied on imported goods into Mauritius. The rates vary depending on the type of goods and their classification under the Harmonized System (HS) code.
Mauritius Revenue Authority (MRA) Website:
For comprehensive and up-to-date information on business taxes in Mauritius, it is recommended to visit the official website of the Mauritius Revenue Authority (MRA).
Mauritius Revenue Authority (MRA) Website: Official MRA Website
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