Companies, collective investment schemes, trusts, trustees of unit trust schemes, foundations and non-resident sociétés and partnerships are subject to corporate income tax.

Entities are subject to income tax on their net income at the rate of 15% with the exceptions of banks and entities engaged in the export of goods and provision of services to a non-resident.

A tax rate is 3% is applied to entities engaged in the export of goods and provision of services to a non-resident.

Chargeable income/(loss) = Gross Income* - Allowable Deductions**

*Gross income refers to all income derived by an entity other than exempt income.

**Allowable deductions are expenditure, losses or allowances which are deductible under the Income Tax Act.

First scenario

When an entity has a chargeable loss. This happens when an entity has a current tax loss position or has tax losses carried forward which fully absorb the current year’s taxable income.


Second scenario

When an entity has obtained an SME certificate with a prescribed period of tax holidays.

Loss of companies

An entity may deduct the loss incurred in an income year in computing the net income for that income year.


Losses carried forward

Loss that cannot be fully utilised in an income year may be carried forward and set off against the net income derived in the following five income years. However, an entity will not be eligible to use the tax losses carried forward if at any given point in time during the following five years, there is a change of more than 50% of the entity’s shareholding.

For information, no time limit is applicable for the amount of loss attributable to annual allowances claimed in respect of capital expenditure incurred on or after 01 July 2006.

An entity shall submit its annual income tax return not later than six months from the date its accounting period ends.

For information, where an entity's accounting year ends on 30 June or 31 December, the due date for submission of return and payment of tax is 2 days, excluding Saturdays and public holidays, before the end of December and June respectively.

An entity should submit quarterly APS statements when it meets the following criteria and pay the related tax.

1. deriving a turnover of Rs 10 million or above; and
2. has a chargeable income in the previous year.

Penalty for late submission of return

Penalty of Rs 2,000 per month or part of the month is applicable on the late submission of a return subject to a maximum limit as follows:

1. Rs 20,000 for a Global Business Company and an entity with an annual turnover exceeding Rs 10 million;
2. Rs 5000 for an entity having an annual turnover of less than Rs 10 million (excluding Global Business Companies).

Late payment of tax

A penalty of 5% of the amount of tax (Applicable to companies having turnover exceeding Rs 10 million and Global Business Companies).

A penalty of 2% of the amount of tax (Applicable to companies having turnover not exceeding Rs 10 million, excluding Global Business Companies).


Interest on unpaid tax

Interest of 0.5% per month or part of the month during which the tax remains unpaid.


Penalty for loss overclaimed

An entity, which has claimed a loss in excess of the actual loss incurred or brought forward, is 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

An entity, which has overclaimed a refund of the income tax is liable to a penalty of up to 25% on the amount of the excess refund overclaimed.

When the entity’s turnover (taxable supplies) exceeds Rs 6 million.

However, certain service providers (eg attorneys and solicitors, consultants, surveyors, valuer, accountants and auditors) should register for VAT irrespective of their turnover.

A penalty of Rs 5,000 for every month or part of the month up to the month registration is made is levied by the Tax Authority should a taxable person fail to apply for compulsory registration, provided that the total penalty does not exceed Rs 50,000.

A taxable supply is a supply of goods, or a supply of services which is performed or utilised in Mauritius and which is subject to VAT. A taxable supply includes a supply which is zero-rated but excludes exempt supply.

VAT registered persons with turnover is Rs 10 million or less

A VAT registered person with turnover of Rs 10 million or less should submit quarterly VAT return.


VAT registered persons with turnover exceeding Rs 10 million

A VAT registered person with turnover exceeding Rs 10 million should submit monthly VAT return.

VAT is chargeable on a supply at the time the supply is deemed to be the earlier of:

1. The time an invoice or a VAT invoice in respect of that supply is issued by the supplier; or
2. The time payment for that supply is received by the supplier.

Where a registered person submits his VAT return and makes payment electronically, the time for submission of return and payment of tax is one month.

Where payment is made by cheque or cash at the MRA counter, the return has to be submitted within 20 days from the end of the month or quarter to which it relates.

Where the last day for the submission of a VAT return falls on a Saturday, Sunday or public holiday, the VAT return may be submitted on the following working day.

A VAT registered person is entitled to make a claim for VAT repayment where his VAT return shows an excess of input tax over output tax and:

1. he has acquired capital goods; or
2. he has made zero-rated supplies.

A VAT registered person may claim repayment in respect of capital goods where the excess on his VAT return includes input tax amounting to more than Rs 100,000 on buildings, plant, machinery or equipment of a capital nature.

Where it is found that a person has overclaimed an amount, a penalty of 20% of the amount overclaimed subject to a maximum limit of Rs 200,000 is charged to the taxpayer.

No claim will be made for penalty not exceeding 250 rupees.

Penalty for late submission of VAT return

Penalty of Rs 2,000 per every month or part of the month until the return for that taxable period is submitted. The total penalty payable will not exceed Rs 20,000.

*Where a registered person is a small enterprise, the maximum penalty payable does not exceed Rs 5,000.


Late payment of VAT

A penalty of 10% is applied barring small enterprises which are subject to a penalty of 2%.


Interest on unpaid tax

Interest of 1% per month or part of the month during which the VAT remains unpaid.


Penalty on excess of VAT input over output tax carried forward found to be overclaimed

Where, in respect of a taxable period, a registered person carries forward an excess amount of input tax over output tax and it is found that the excess has been overclaimed, the person is liable to a penalty of 20% of the amount overclaimed.

The penalty does not exceed Rs 100,000.


Overclaiming of VAT repayment

Where in respect of a claim for repayment under this section, it is found that an amount has been overclaimed, the registered person is liable to a penalty of 20% of the amount overclaimed provided that the penalty does not exceed Rs 200,000.