Enacted by the parliament of mauritius, as follows 1. Tax alert july 2017 issue 8 kpmg mauritius kpmg international. The changes under the income tax act the act take into account action 5 of the organisation for economic cooperation and development oecdg20. Mra eservices is a secured online platform offering taxpayers the. Gaar decoded 3 foreword the introduction of general antiavoidance rules gaar is a watershed event in the evolution of indias tax policy and legislation. The tenth schedule to the act is and replaced by the repealed tenth schedule set out in the schedule to these regulations. The income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. Income tax holidays of 8 years granted to the following companies as from the. The finance miscellaneous provisions act 2017 fa 2017 received the. Jul 05, 2018 before the fmpa 2018 amendment there was no additional tax cost in mauritius as a result of the foreign tax incurred.
Please refer to endnotes at appendix 1 page 43 of 381. The consolidated income tax act is available, in a pdf version, under the tax heading on the university of pretoria, laws of sa consolidated legislation website. Candidates sitting txuk f6 after 31 march 2019 should refer to the finance act 2018 version of this article to be published on the acca website in 2019. This is the finance act 2017 version of this article. We will go through the changes in the tax treatments and discuss how the reforms will impact on your current and future investments through mauritius.
Annual rates for 201718, employment and investment income, and remedial matters act. The finance miscellaneous provisions act 2017 the act has come into force upon approval by the parliament and the president of the republic of mauritius last week. It is now proposed to amend the definition of the term income under section 224 of the incometax act, 1961 the act to include the receipt of the sum of money or value of property without consideration or for inadequate consideration under section 562x. Corporations holding category 2 global business licence gbc2 are exempt from tax. Mauritius is that he has to be present in mauritius in an income year and the 2 preceding income years for an aggregate period of 270 days or more further to change in income year from december to june, the 270 days criterion used to determine tax residence is being reduced to 225 days for income years ending 30 june 2016 and 2017. This act may be cited as the land duties and taxes act 1984. It is relevant for candidates sitting the taxation united kingdom txuk f6 exam in the period 1 june 2018 to 31 march 2019. Income derived by companies engaged in ship and aircraft leasing.
With this change the domestic company is obliged to pay 2% even though it may have already paid 30% on the same income in another country. Alert which received the presidents assent on the 9 august 2018, the long awaited income tax regulations were finally gazetted on 11 october 2018. The income tax act 1995 consolidated version arrangement of sections part i preliminary section 1. Mauritius enacts changes to tax regime for corporations with. Mauritius revenue authority deloitte refers to one or more of deloitte touche tohmatsu limited dttl, its global network of member firms, and their related. Short title this act may be cited as the business facilitation miscellaneous provisions act 2017. A new super tax bracket of 45% for taxable income in excess of r1,5 million was introduced for individuals and as a consequence the flat rate for trusts has also increased to 45%. Interest income does not form part of the chargeable income. Corporate and personal taxes are embodied under one heading of income tax and are payable by all resident companies and individuals on nonexempt income derived from mauritius and from other. The key fiscal amendments relate to income tax reduction from 15 percent to 3. In the same vein, the financial services commission fsc, the. These regulations may be cited as the income tax amendment of schedule no. As from income year 01 july 2017, a resident individual will pay a solidarity levy of 5% on his chargeable income and dividend income from resident companies in excess of rs3. Provisions relating to direct taxes income tax department.
As of 1 july 2018, the tax rate of 15% will be reduced to 10% on annual net income derived by an individual of up to 650,000 mauritian rupees mur. Income tax act 1995 and annual finance acts tax treaties. At least 50% of the csr fund set up on or after 1 january 2017. Thereafter, a sal is not required annually unless the. The bill provides for amendment to the mra act for the introduction of an alternative dispute. Mauritius fiscal guide 2017 2018 income tax business income mauritian residents are taxed on their worldwide income whereas nonresidents are taxed on their mauritiansourced income.
The antiavoidance provisions of the mauritius income tax act. An exempt person or a person liable to income tax and deriving pension in relation to his past employment or that of his spouse or deriving annuity, pension or other such emolument may opt to receive his pension or other such emoluments net of income tax. No tds applicable on royalty income derived by a mauritian from. Applicable only to citizens of mauritius, who are resident in mauritius. Application of act part ii liability to income tax 4. Tax alert issue 4 march 2017 issuance of automatic tax claim by the mra a company is under obligation to file a return of income not later than 6 months from the end of its accounting.
Acts of parliament are available without charge, and updated monthly at the singapore statutes online website. Measures for promoting affordable housing and real estate sector d. Corporate and personal taxes are embodied under one heading of income tax and are payable by all resident companies and individuals on nonexempt income derived from mauritius and from other sources. The provisions of finance bill, 2017 relating to direct taxes seek to amend the income tax act, 1961 the act and the finance act, 2016 a. You will have the opportunity to raise questions directly with us. From the income year ended 30 june 2017, the sal should be filed by 2 october 2017 together with your income tax return. The authoritative version is to be found in the official publication land duties and taxes act act 46 of 1984 16 july 1984 as at 2407 2017 amended gn 14011. There is no wht in mauritius for payments made by gbc companies to nonresidents not carrying out any business in mauritius. Income tax act act income tax act subsidiary legislation legislation is reproduced on this website with the permission of the government of singapore. Business registration act amended the business registration act is amended, in section 103, by deleting the word minister and replacing it by the word registrar. Tax reform in the global business sector in mauritius to be held on friday 27 july 2018. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. Kpmg confidential mauritius fiscal guide 2017 2018 1 introduction. In todays context, any discussion on structuring of a transaction or an arrangement would be incomplete without debating its potential exposure to the provisions of gaar.
The electronic version of this act is for information only. Income from employment duties performed in mauritius is deemed to have been derived from mauritius, even if the related remuneration is received outside mauritius. There is no wht on dividends received from resident companies and on payments made by a company having an annual turnover of less than mur 6. Income tax and vat acts online the income tax act, 1962, valueadded tax act, 1991 and other tax acts may be accessed on the sars website. The income tax foreign tax credit regulations 1996. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email. The finance act 2017 india ministry of law and justice legislative department new delhi, the 31st march, 2017chaitra 10, 1939 saka the following act of parliament received the assent of the president on the 31st march, 2017, and is hereby published for general information. A resident is defined in the income tax act as an individual who is normally domiciled in mauritius unless permanent domicile is outside mauritius, or has lived in mauritius for a period of 183 days or more in an income year or has lived in mauritius for an aggregate period of 270 days in an income year and the 2 preceding income years. The income tax act regulations made by the minister under. The legislation incorporates the measures announced by the honourable prime minister, minister of finance and economic development in his budget speech on 08 june 2017.
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