Corporate Tax
- Corporate Taxation
- Tax Rates on Chargeable Income of Companies
- Calculation of Chargeable income:
- Alternative Minimum Tax (AMT)
- Due Dates for submission of annual return & APS Statement and payment of tax
- Penalty
- Income Tax Forms for Companies
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
Tax Rates on Chargeable Income of Companies
Year of assessment commencing on 1 July 2008 - 15%
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
Where the normal tax payable for an income year by a company is less than 7.5% of its book profit, the company should pay either 7.5% of its book profit or 10% of dividends declared in respect of that year, whichever is lesser.
"normal tax payable" means the tax payable calculated from the chargeable income of the company at the tax rate applicable to that company after deducting any credit to which the company is entitled except foreign tax credit.
"book profit" means profit computed in accordance with internationally accepted accounting practices, but does not include:
- dividends received from resident companies;
- profits on disposal of fixed assets; and
- profits or gains from sale of securities.
- No account is also taken of:
- loss on disposal of fixed assets; and
- loss from sale of securities.
- The AMT is not applicable :
- to companies which have not declared any dividend;
- to companies which are exempt from payment of tax; and
- where the amount representing 10% of dividends declared does not exceed the normal tax payable.
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 monthsfrom the end of the month in which its accounting year ends.
- 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. These requirements apply as from 1 July 2008 for companies whose turnover in respect of the year of assessment 2008/2009 exceeds Rs 100 million and as from 1 July 2009 for all other companies.
- Any company which pays tax under APS during the Year of Assessment 2008/2009 may pay the tax payable in accordance with its annual return for that Year of Assessment in three equal instalments payable by the due date for submission of its annual return for the Years of Assessment 2008/2009, 2009/2010 and 2010/2011
- All companies deriving gross income and exempt income exceeding Rs 30 million have the legal obligation to file annual returns an 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.
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 1% per month or part of the month during which the tax remains unpaid.
Where a company does not attach its Profit and Loss Account and Balance Sheet, or any other appropriate statement of account, it shall be deemed NOT to have submitted a return.
Income Tax Forms for Companies
- 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
- Applicable to a trust.
- This return, duly filled in, should be submitted by the due date by every trust, whether or not it has a chargeable income.
- Applicable to a unit trust scheme.
- This return, duly filled in, should be submitted by every trustee of a unit trust scheme, whether or not it has a chargeable income.
