Mauritius: Recently introduced tax measures

The statutory provisions giving effect to the measures announced in the Mauritius National Budget 2022/2023 are set out in the Finance Act 2022. The salient features of some of the tax measures to enhance tax compliance are hereunder provided.

 ·        Extension in the scope of TDS

With Tax Deduction at Source being an effective tool in checkmating tax compliance, its scope has been widened to include:

(i) Payment of fees made by insurance companies to motor surveyors and mechanics for repairs of motor vehicles of policy holders: and

 (ii) New services which are Security and Cleaning Services and Pest Management Services

Henceforth, a corporate payer while effecting payment to the payees will have to deduct TDS at the rate of 3%.

 ·        Implementation of E-Invoicing system

Provision has been made for the implementation of an E-Invoicing System in a phase manner. This system would allow a business to –

(a) connect electronically to the system for registering thereon all invoices, including debit notes and credit notes, generated in the furtherance of the business; and

(b) issue fiscal invoices to customers.

 ·        Publication of Names of Companies not submitting Returns and list of Value Added Tax (VAT) registered persons

(a)The tax authority has been empowered to publish in its website the name of companies which have not filed tax return.

(b) To avoid fraudulent practices, a list of all VAT-registered persons including the name, trading name, Business Registration Number and VAT Registration Number will be published on the website of MRA. The tax authority will be updating the list on a quarterly basis.

 ·        Deduction of Amount from VAT by Public Sector Agency

With a view to increasing VAT compliance, Public Sector Agencies will remit to the tax authority a percentage of VAT at the time of making payment in respect of procured goods and services exceeding a specified threshold.