Mauritius: Budget Measures 2023-2024

Some salient features of Budget Measures 2023-2024

The Budget Speech 2023-2024 was delivered by the Minister of Finance on the 2nd of June 2023. The salient features on some of the tax measures as announced are as follows:

(a) Personal Income Tax

·         Introduction of progressive tax system

The current personal income tax system is being overhauled with the introduction of progressivity in the tax system.  Currently, the system consists of 3 different rates at which the income earned by an individual is being taxed, i.e. at 10%, 12.5% and 15%. An individual with leviable income in excess of Rs 3 million also pays solidarity levy of 25%.

Under the new progressive tax system all income will be taxed incrementally and there are going to be different tax rates ranging from 0% to 20%. The solidarity levy actually being paid by taxpayers will be abolished.

(b) Corporate Tax

(i) To facilitate the employment of disabled individuals, companies will be allowed to deduct 300 percent on the emoluments paid to the individuals with disability under the “Prime à L’Emploi Scheme”.

(ii) To enhance access to childcare and make the workplace more inclusive, provision has been made to allow the claim for double deduction on the cost of setting up a childcare centre.

(iii Companies will be allowed to 200 per cent deduction for the employment of newly recruited women or women who were unemployed for at least a year under the “Prime a L’Emploi Scheme”.

(c ) Tax Administration

·         Statement of Financial Transactions

A virtual asset service provider and an issuer of initial token offerings will henceforth be required to submit annually to the Revenue Authority a report on transaction made by an individual, a société or succession exceeding Rs 250,000 or transactions exceeding in the aggregate Rs 2 million in a year. The threshold for corporates will be Rs 500,000 and Rs 4 million respectively.

·         Tax Deduction at Source (TDS)

The scope of TDS will be extended to cover-

(i) Payment of fees made by insurance companies to panel beaters and spray painters for repairs of motor vehicles of policy holders; and

(ii) Interior Decorator/Designer

By - MUKHTA TOOFANEE (MRS), CATA Country Correspondent, Team Leader, Large Taxpayers Department, Port Louis, Mauritius