In addition to the primary income and corporate taxes, a range of other taxes and levies apply to Mauritian residents. These taxes encompass various aspects of financial transactions and employee benefits, reflecting the comprehensive nature of the tax system in Mauritius as of June 2018.

Taxes and Levies

  1.  Value Added Tax (VAT): VAT is a significant component of the Mauritian tax system, levied at a standard rate of 15%. It applies to the supply of goods and services within Mauritius and on imported goods. Businesses with an annual turnover above a certain threshold are required to register for VAT and collect it from customers, remitting the collected tax to the Mauritius Revenue Authority (MRA).
  2. National Pension Fund (NPF) Contribution: Employers and employees contribute to the National Pension Fund, with the contribution rate ranging from 3% to 5% of the employee’s remuneration. This fund provides social security benefits, including pensions and other welfare payments, ensuring financial support for employees after retirement.
  3. Industrial and Vocational Training Levy: Employers are required to pay a levy of 1% of the employee’s remuneration towards industrial and vocational training. This levy supports workforce development and training programs, enhancing the skills and employability of the Mauritian workforce.
  4. Employees’ Welfare Fund: A contribution of 2.5% of the employee’s remuneration is made to the Employees’ Welfare Fund. This fund is used to provide various welfare benefits and services to employees, including financial assistance, educational support, and health-related services.
  5. Mortgage Fees: For property transactions involving a mortgage, a fee structure is in place: MUR 300 is charged on the first MUR 500,000 of the loan, and 2.425% on any balance above this amount. These fees are paid at the time of registering the mortgage, covering administrative costs and supporting the regulatory framework for property financing.
  6. Land Transfer Tax: A 5% tax is levied on the transfer of land, payable by the transferor. This tax applies to the sale or transfer of immovable property, contributing to the revenue generated from real estate transactions.
  7. Land Development Tax: This tax is levied at MUR 2.50 per square metre of land that is parcelled out for development. It is aimed at regulating and managing land development activities, ensuring sustainable and organised urban and rural development.
  8. Tax on Transfer of Leasehold Rights in State Land: A 10% tax is imposed on both the buyer and the seller when transferring leasehold rights in state land. This dual taxation ensures that transactions involving state land rights contribute to public revenue.
  9. Stamp Duty: Stamp duty in Mauritius ranges from MUR 25 to MUR 1,000, depending on the document being processed. This duty is payable to the Registrar General at the time of registration, transcription, inscription, or erasure of inscription of documents. It applies to a variety of legal and financial documents, ensuring proper documentation and record-keeping in legal transactions.

For those looking to understand wealth taxation works, you can have a look at our blog on ‘Wealth Taxation’.

Summary

Mauritius has a diverse tax system that includes multiple taxes and levies, each serving specific purposes. The VAT, at a standard rate of 15%, is a significant source of revenue, while contributions to the NPF and Employees’ Welfare Fund support social security and employee welfare. The Industrial and Vocational Training Levy aids in workforce development, and mortgage fees, land transfer tax, and land development tax regulate property transactions. The tax on transfer of leasehold rights in state land and stamp duty ensure proper management and documentation of legal transactions. These taxes and levies collectively support the economic and social infrastructure of Mauritius, contributing to its development and governance.