Taxpayers in Mauritius are classified into three main categories: Corporations, Individuals, and Trusts.

  1. Corporations:
  • Companies
  • Non-resident societies (partnerships) or joint ventures
  • Associations
  • Registered branches of foreign companies

2. Individuals:

  • Residents
  • Non-residents

3. Trusts

These classifications determine the types of taxes applicable to each category of taxpayer. The primary taxes applicable to taxpayers in Mauritius are divided into three main groups: Taxes on Income, Taxes on Transactions, and Taxes on Property, with additional other taxes.

Taxes on Income

  1. Individual Income Tax: Individuals, whether residents or non-residents, are subject to income tax on their worldwide income. For residents, income earned both within and outside Mauritius is taxed, although foreign income is only taxed if it is remitted to Mauritius. Non-residents are taxed on their income derived from sources within Mauritius.
  2. Corporate Income Tax: Corporations, including companies, non-resident societies, associations, and branches of foreign companies, are liable to corporate income tax on their profits. The standard corporate tax rate in Mauritius is 15%, but certain sectors may benefit from reduced rates or exemptions under specific conditions.

Taxes on Transactions

  1.  Value Added Tax (VAT): VAT is levied on the supply of goods and services in Mauritius, as well as on the importation of goods. The standard rate of VAT is 15%. Businesses with an annual turnover exceeding a specified threshold are required to register for VAT and collect it from their customers on behalf of the government.

Taxes on Property

  1. Registration Duty on Transfer of Property: This tax is imposed on the transfer of immovable property. The rate of registration duty varies depending on the value and type of property being transferred. It is typically paid by the purchaser at the time of registration of the deed of transfer.
  2. Urban Property Tax: This tax is levied on properties located in urban areas. It is usually based on the annual rental value of the property and is payable by the property owner.

Other Taxes

  1. Customs Duty: Customs duty is charged on certain goods imported into Mauritius. The rate of duty varies depending on the type of goods and their classification under the customs tariff schedule.
  2. Excise Duty: Excise duty is levied on specific goods produced locally or imported, such as alcoholic beverages, tobacco products, and petroleum products. The rates of excise duty are set by the government and can vary significantly based on the product.
  3. Vehicle Tax: Vehicle tax is imposed on motor vehicles registered in Mauritius. The amount of tax depends on factors such as the type and engine capacity of the vehicle.

For a deeper understanding, of business taxation explore our blog on ‘Corporate Income Tax’ where you will find information on tax policy, its importance and much more. Additionally, you may also check out our blog ‘Other Taxes Rates’.

In summary, the tax system in Mauritius encompasses various taxes that apply to different categories of taxpayers. Understanding these classifications and the corresponding taxes is essential for compliance and effective financial planning. Corporations, individuals, and trusts must navigate taxes on income, transactions, and property, along with other specific taxes, to meet their obligations under Mauritian law.