Mauritius Revenue Authority

You may file your tax return electronically on MRA website http://www.mra.mu

In case there are changes in your personal data, kindly fill in a Personal Data Change Form (available on MRA website/Service Counter) and send it to MRA

The return should be forwarded so as to reach the office of the Director-General at latest on 1 April 2013 Where the return is filed electronically and payment, if any, is effected through internet banking, the due date is 15 April 2013

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Note 1 - Section 2

Where income falling under section 2 is derived jointly by a couple, such income may be declared in any proportion by each spouse.

Trade, Business and Profession - Section 2.1

Net income is obtained by adding to the net income per accounts, all non allowable items such as provision for bad debts, depreciation, etc, and deducting all allowable items.

Expenses incurred exclusively in the production of gross income are deductible. Expenses of a private or capital nature and expenses incurred in the production of exempt income are not allowable.

Annual Allowance

Capital expenditure is not an allowable deduction. However, you may claim annual allowance in respect of the capital expenditure as specified hereunder:

No other deduction is however allowable in respect of the same expenditure.

No annual allowance is allowable unless proper books of accounts and records are kept.

Note 2 - Section 2.2

Agriculture

Income derived by an individual on the first 60 tonnes of sugar accruing to him is exempt from income tax provided that the land under cultivation does not exceed 15 hectares.

Note 3 - Section 2.4

Resident Société or Succession

1. Société (Partnership)

   A resident société is not liable to tax. Instead, every associate of the société is liable to tax on his share of income, whether distributed or not.

   A resident société is required to fill in and submit its annual return of income (IT Form 6) to the MRA not later than 1 April 2013.

   A non-resident société which is liable to tax as a company should fill in and submit an IT Form 3.

2. Succession

   A succession is not liable to tax. Instead, every heir of the succession is liable to tax on his share of income, whether distributed or not.

   A succession is required to fill in and submit its annual return of income (IT Form 9) to the MRA not later than 1 April 2013.

Note 4 - Section 3

Interest Income

Interest earned as from 1 January 2010 on savings and fixed deposit accounts maintained with a bank or non-bank deposit taking institution, Government securities and Bank of Mauritius Bills are exempt.

However, all interests earned during period 1 July 2006 to 31 December 2009, which were paid to you in year 2012 are taxable.

Enter at section 3.1 any interest income, other than the above mentioned exempt interest, received by you and your dependents during the income year ended 31 December 2012, including interest relating to period 1 July 2006 to 31December 2009 which were paid to you in that income year.

Note 5 - Section 5

Income of Dependents

If you have claimed Income Exemption Threshold of Category B, C, D, or F at section 12, any net income derived by the dependent/s during the year is deemed to be your income and should be included at section 5 of your tax return. Conditions for entitlement to IET Category B, C, D and F are given in Note 8.

Note 6 - Section 7

Losses

Losses may be set off against net income other than emoluments subject to the following:

1. Losses incurred in an income year may be carried forward to be set-off against net income of the following 5 income years only.
2. The time limit of 5 years is not applicable for the carry forward of any amount of loss that is attributable to annual allowance claimed in respect of capital expenditure incurred on or after 1 July 2006.

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Note 7 - Section 9

Emoluments

If you derived emoluments, the PAYE Employer Registration Number, emoluments net of exempt income, tax withheld under PAYE as appearing in your Statement/s of Emoluments and Tax Deduction should be inserted at section 9. The total emoluments net of exempt income should be inserted at section 9.11 and then at 9.13 after deducting any expenditure incurred wholly, exclusively and necessarily in the performance of the duties of the office. If you derived emoluments from more than 10 sources, give details of the 9 main sources at 9.1 to 9.9. For the remaining sources, lump the emoluments and tax withheld, insert the word "Lump" in the first column and enter the corresponding amounts at 9.10.

Note 8 - Section 12

Income Exemption Threshold (IET)

An individual who was resident in Mauritius in the income year ended 31 December 2012 is entitled, for the purpose of calculating his chargeable income, to claim a deduction in respect of Income Exemption Threshold - Category A, B, C, D, E or F as applicable to him.

If you make a claim under either Category B, C, D or F then your spouse shall be entitled to a claim under Category A or E only in his/ her tax return for the year.

IET - Category A - No dependent

If you were resident and had no dependent (spouse or child), you should claim IET Category A unless you are entitled to claim IET Category E.

IET - Category B - one dependent

A claim under Category B shall be allowable if the net income and exempt income of your first dependent did not exceed Rs 110,000 in the income year ended 31December 2012.

IET - Category C - two dependents

A claim under Category C shall be allowable if the net income and exempt income of your second dependent did not exceed Rs 60,000 in the income year ended 31December 2012.

IET - Category D - three dependents

A claim under Category D shall be allowable if the net income and exempt income of your third dependent did not exceed Rs 40,000 in the income year ended 31December 2012.

IET - Category E - Retired or disabled person - no dependent

A claim under Category E shall be allowable to a retired person who has attained the age of 60 at any time prior to 1 January 2012 and has not received any business income or emoluments other than retirement pension.

This category is also applicable to a person suffering from permanent disablement irrespective of his age and source of income.

IET - Category F - Retired or disabled person - One dependent

A claim under Category F shall be allowable to a retired person who has attained the age of 60 at any time prior to 1 January 2012 and has not received any business income or emoluments other than retirement pension. The net income and exempt income of the dependent should not exceed Rs 110,000 in the income year ended 31 December 2012.

This category is also applicable to a person suffering from permanent disablement irrespective of his age and source of income.

"Dependent" means 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 a 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.

"Resident" means an individual who has been present in Mauritius during the income year for a period of or an aggregate period of 183 days or more; or who has been present in Mauritius during the income year and the 2 preceding income years for an aggregate period of 270 days or more; or who has his domicile in Mauritius unless his permanent place of abode is outside Mauritius.

Note 9 - Section 13

Additional exemption in respect of dependent child pursuing undergraduate course

1. Where a person has claimed an Income Exemption Threshold in respect of category B, C, D or F and the dependent is a child pursuing 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 the child is pursuing his under graduate course in Mauritius at an institution recognised by the Tertiary Education Commision; or
   2. Rs 125,000 - Where the child is pursuing undergraduate course outside Mauritius at a recognised institution.
2. The additional exemption is not allowable:-
   1. in respect of more than 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. where the person’s net income plus dividends and interest received for the income year 2012 exceeded Rs 2 million.

Note 10 - Section 14

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 used exclusively for the purchase or construction of his house, may claim a relief in respect of the interest paid on the loan.
2. The relief to be claimed is the amount of interest paid in the income year ended 31 December 2012 or Rs 120,000, whichever is the 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 the claim does not, in the aggregate, exceed Rs 120,000.
3. The loan must have been contracted on or after 1 July 2006 from a bank, a non-bank deposit taking institution or an insurance company.
4. The relief is not allowable where :-
   1. the person or his spouse is, at the time the loan is contracted, already the owner of a residential building;
   2. the person or his spouse has benefitted from any new housing scheme set up on or after 1 January 2011 by a prescribed competent authority;
   3. the person’s net income plus dividends and interest received for the income year 2012 exceeded Rs 2 million.
5. The relief is allowable for 5 consecutive years only.

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Note 11 - Section 16

Chargeable Income

The chargeable income is arrived at by deducting from the total net income at section 11, the total exemption and relief at section 15.

Note 12 - Section 17

Calculation of Tax

The tax on chargeable income is calculated at a flat rate of 15%.

Note 13 - Section 18

Tax Credit

Enter foreign tax paid or the amount of Mauritius tax attributable to the foreign income, whichever is the lesser.

Note 14 - Section 20

Tax Withheld under PAYE and TDS and paid under CPS

Enter amount withheld under PAYE as per Statement of Emoluments and Tax deduction

Enter amount deducted at source as TDS in year 2012 on your income from interest, royalties, rent, contracting and subcontracting and other services (architect, engineer, land surveyor, project manager in the construction industry, property valuer and quantity surveyor) as per Statement of Tax Deduction at Source.

The TAN of payer should be inserted where TDS has been deducted on income derived by the individual directly. Where the individual is entitled to deduct the share of TDS on income derived by a Societe, the TAN of the Societe should be inserted.

Any amount of unrelieved credit in respect of tax deducted at source on exempt interest (refer to Note 4) received in year 2010 may be claimed at section 20.9.

Note 15

The due date for submission of the return is 1 April 2013. The return should be submitted electronically in case your total income for the income year ended 31 December 2012 exceeded two million rupees. Where a return is filed electronically and payment of tax, if any, is effected through internet banking, the due date for submission of the return is 15 April 2013.

Note 16 - Section 22

Penalty and Interest

Penalty for late submission of return

Every person who is required to submit a return and who fails to do so, shall be liable to pay a monthly penalty of Rs 2,000 up to a maximum of Rs 20,000.

Penalty for late payment of tax

In case of late payment, enter 5% of the balance of tax payable per section 21.

Interest on late payment of tax

In case of late payment, enter 1% of the balance of tax payable at section 21 for each month or part of the month during which the tax remains unpaid after the due date.

Note 17 - Section 24

Contribution to National Pensions Fund (NPF) and National Savings Fund (NSF)

An individual who, in the year 2012, employed any person in the domestic service, may either pay his NPF and NSF contributions on a monthly basis to the Ministry of Social Security or effect the payment in one sum to the MRA together with the annual income tax return.

Where an employer pays his NPF/NSF contributions for any year to the MRA, he should continue to do so for every subsequent year.

In case NPF/NSF contributions are paid to the MRA after the due date for submnission of income tax return, a surcharge 5% per month or part of the month up to a maximum of 100% of the amounts payable is applicable under the National Pensions Act and the National Savings Act.

"domestic service" means employment in a private household and includes employment as cook, driver, gardener, garde malade, maid, seamstress.

Contributions are payable on the basic wage or salary as prescribed in the Remuneration Order, award or agreement, or where the employer pays a higher salary, the higher salary, excluding allowances. The minimum and maximum monthly salary subject to NPF and NSF contributions for the year 2012 are as follows –

Contributions are payable as per rates below -

The employee’s and employer’s share of NPF and NSF contributions should each be calculated separately and rounded to the nearest rupee .

Where the employee’s salary including salaries earned by him in the service of other employers does not exceed Rs 3,000 in the aggregate in a month, the employee’s share of NPF and NSF contributions (3% and 1% respectively) should not be deducted from the employee’s salary. However, the employer should pay his share of contributions (6% and 2.5%).

In case there are more than five employees, attach additional sheet(s) in the same format as page 4 of the return to give the required details.

For additional information, please consult the website of the Ministry of Social Security http://socialsecurity.gov.mu

These Notes are intended to assist in the completion of the return. If further information is required, please contact the Mauritius Revenue Authority, Ehram Court, Cnr Mgr Gonin & Sir Virgil Naz Streets, Port Louis.

Tel. No: 207-6000   Hotline: 207-6010   Fax No. : 211-8099   Website: http://www.mra.mu