Exemptions

 

Income which are exempted from income tax are as follows :

  1. Dividends
    1. Paid by a company resident in Mauritius; or
    2. Paid by a co-operative society registered under the Co-operative Societies Act.

     

  2. Interest payable on -
    1. a balance maintained in a bank holding a banking licence under the Banking Act 2004 by an individual who is not resident in Mauritius;

     

  3. The deletion of item 3(b), the exemption provided under that item shall continue to apply until 30 June 2021 where the interest is payable on call and deposit accounts held with any bank under the Banking Act by a company issued, on or before 16 October 2017, with a Global Business Licence under the Financial Services Act.

     

  4. Interest payable on
    1. a savings or fixed deposit account held by an individual, a société or a succession with any bank or a non-bank deposit taking institution under the Banking Act;

     

  5. Interest paid to a non-resident, not carrying on any business in Mauritius –
    1. by a corporation holding a Global Business Licence under the Financial Services Act out of its foreign source income; or

       

    2. by a bank holding a banking licence under the Banking Act insofar as the interest is paid out of gross income derived from its banking transactions with non-residents and corporations holding a Global Business Licence under the Financial Services Act.

     

  6. Interest, rents, royalties, compensations and other amounts paid by a special purpose fund established under the Financial Services Act 2007 to a nonresident.

      

  7. Royalty payable to a non-resident by a company out of its foreign source income.

     

  8. Gains or profits derived from the sale of units, securities or debt obligations by a person.

     

  9. The first Rs 2.5 million of the aggregate amount received -

     

    1. as lump sum by way of commutation of pension or by way of death gratuity or as consolidated compensation for death or injury, and paid -

       

      1. by virtue of any enactment;
      2. from a superannuation fund; and
      3. under a personal pension scheme approved by the Director-General;

       

    2. as lump sum under the National Savings Fund Act;
    3. by way of retiring allowance;
    4. by way of severance allowance determined in accordance with the Labour Act; and
    5. as compensation negotiated under section 42 of the Employment Rights Act, limited to the amount of severance allowance referred to in section 46(5)(i) and (ii) of that Act, on such conditions as may be prescribed.

     

  10. Any transport allowance payable by an employer to an employee byvirtue of the terms and conditions of service equivalent to -

    1. the return bus fare between residence and place of work;

       

    2. petrol allowance, commuted travelling allowance and travel grant payable by the Government of Mauritius and the local authority to their employees; or

       

    3. the actual petrol or travelling allowance paid or 25% of the monthly basic salary up to a maximum of Rs 11,500 , whichever is the lesser, provided that the employee makes use of a private car registered in his own name for attending duty and for the performance of the duties of his office or employment.

     

  11. Any rent allowance payable to a person appointed to an office in -

    1. the Police Force;
    2. the Fire Services;
    3. the Forests Division of the Ministry of Agriculture and Natural Resources;
    4. the Prisons and Industrial School Service;
    5. the Ministry of Fisheries;
    6. the Department of Civil Aviation; or
    7. the Fire Unit of the Mauritius Marine Authority.

     

  12. Passage benefits provided under a contract of employment not exceeding 6% of the basic salary.

     

  13. Any retirement pension not exceeding the income exemption threshold in respect of Category A payable to a citizen of Mauritius who is not resident in Mauritius.

     

  14. Alimony paid to a previous spouse whose marriage has been dissolved by a court of competent jurisdiction or in respect of maintenance paid to the spouse in accordance with an order of a court.7

     

  15. An employee whose emoluments do not exceed Rs 23, 461 per month is an exempt person and is not subject to tax deduction under the PAYE System.

For further information regarding exempt income, refer to Part II of the Second Schedule to the Income Tax Act