Corporate Taxation

 

  1. Bodies of persons subject to Corporate Tax
  2. Tax Rates on Chargeable Income of companies
  3. Calculation of Chargeable Income
  4. Alternative Minimum Tax (AMT)
  5. Corporate Social Responsibility (CSR)
  6. Return of dividends by companies
  7. Due dates for submission of Annual Return & APS Statement and Payment of tax
  8. Penalty
  9. Income Tax Forms for Companies

  1. Bodies of persons subject to Corporate Tax

    Companies, Trusts, Trustees of Unit Trust Schemes and Non-resident Sociétés(Partnerships).

    Trusts, Trustees of Unit Trust Schemes and Sociétés are treated as companies for tax purposes.

     

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  2. Tax Rates on Chargeable Income of companies

    Year of assessment commencing on 1 July 2008 :15%

     

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  3. Calculation of Chargeable Income

    The chargeable income of a body of persons subject to corporate tax is calculated as follows:

    Chargeable Income = Gross Income - Allowable Deductions

     

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  4. Alternative Minimum Tax (AMT)

    Where the normal tax payable for an income year by a company is less than 7.5% of its book profit, the company should pay either 7.5% of its book profit or 10% of dividends declared in respect of that year, whichever is lesser.

     

    "normal tax payable" means the tax payable calculated from the chargeable income of the company at the tax rate applicable to that company after deducting any credit to which the company is entitled except foreign tax credit.

     

    "book profit" means profit computed in accordance with internationally accepted accounting practices, but does not include:

    • dividends received from resident companies;
    • profits on disposal or revaluation of fixed assets; and
    • profits or gains from sale or revaluation of securities.

     

    No account is also taken of:

    • loss on disposal or revaluation of fixed assets; and
    • loss from sale or revaluation of securities.

     

    The AMT is not applicable :

    • to companies which have not declared any dividend;
    • to companies which are exempt from payment of income tax;
    • to companies holding GBL1 Licence;

    to a manufacturing company or a company operating a hotel in respect of income derived for the period of 1 Jan 2013 to 31 December 2014 and where the amount representing 10% of dividends declared does not exceed the normal tax payable.

     

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  5. Corporate Social Responsibility (CSR)

    Every company is required to set up a CSR Fund equivalent to 2 % of its chargeable income of the preceeding year to implement an approved programme or to finance an approved NGO. Where the amount spent is less than the amount provided under the Fund, the difference should be paid to MRA at the time the company submits its return of income.

     

    CSR is not applicable to:

    • a GBL 1 company;

    • a bank in respect of income derived from Non-Residents or GBL corporations;

    • an IRS company;

    • a non-resident society, trust or a trustee of a unit trust scheme.

     

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  6. Return of dividends by companies

     

    Every company which pays a dividend in an accounting period shall, within one month after the end of its accounting period, submit to the Director General, in respect of that accounting period, a return specifying in respect of every person to whom dividend exceeding 50 000 rupees has been paid :

    (a) the full name and address; and

    (b) such other particulars as may prescribed.

     

    Where in an accounting period, a company pays dividend and its gross income and exempt income, in the aggregate, exceeds 10 million rupees, the company shall submit the return under section (1) above electronically, unless otherwise authorised, through such computer system as may be approved by the Director General.

     

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  7. Due dates for submission of Annual Return & APS Statement and Payment of Tax

     

    Every company, whether or not it is a taxpayer, is now required to file its annual return not later than six months from the end of the month in which its accounting year ends.However, where a company's accounting year ends on 30 June, the due date for submission of return and paymentof tax is 2 days, excluding saturdays and public holidays, before the end of December.

     

    Besides the annual return, companies are also required to file, under the Advance Payment System(APS), quarterly APS statements and to pay tax in accordance thereof. However, company with a turnover below the threshold of Rs 4 million per annum are exempted from the requirement to file quarterly returns and pay tax under APS.

     

    All companies deriving gross income and exempt income exceeding Rs 10 million have the legal obligation to file annual returns and pay tax electronically. Failure to file electronic returns carries a penalty of 20 per cent of the tax payable (maximum Rs 100 000) or Rs 5000 where no tax liability is declared in the return.

     

    Companies may file return / statements and pay tax electronically to MRA using the Mauritius Network Services (MNS) system. Relevant application forms are available on the MRA website.Alternatively, companies may request an eFiling Service Centre to do the electronic filing on their behalf. A list of approved eFiling Service Centre is also available on MRA website. Companies filing their returns in Mauritian rupees may use the efiling facility available on the MRA website.

     

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  8. Penalty

    Late submission of return - a penalty of Rs 2,000 per month or part of the month up to a maximum of Rs 20,000.

     

    Late payment of tax - a penalty of 5% of the amount of tax excluding any penalty and interest at the rate of 1% per month or part of the month during which the tax remains unpaid.

     

    Where a company does not fill in all the parts of the return, it shall be deemed NOT to have submitted a return.

     

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  9. Income Tax forms for companies

    IT FORM - 3

    Applicable to a company, including a non-resident société.

    This return, duly filled in, should be submitted by the due date by every company, whether or not it has a chargeable income.

    Download Form

     

    IT FORM - 3A

    Applicable to a trust and unit trust

    This return, duly filled in, should be submitted by the due date by every trust, whether or not it has a chargeable income.

    Download Form

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