Home Taxes & Duties Corporate Taxation

Corporate Taxation

 

  1. Bodies of persons subject to Corporate Tax
  2. Tax Rates on Chargeable Income of companies
  3. Calculation of Chargeable Income
  4. Corporate Social Responsibility (CSR)
  5. Doubt on Interpretation
  6. Amended Return
  7. Due dates for submission of Annual Return & APS Statement and Payment of tax
  8. Penalty (including penalty for loss overclaimed)
  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. Corporate Social Responsibility (CSR)

    Every company and resident société is required to set up a CSR Fund equivalent to 2 % of its chargeable income of the preceeding year.

     

    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; and
    • a foundation, trust or a trustee of a unit trust scheme.

    In the case of a resident société, other than a resident société holding a Global Business Licence, CSR is calculated on its net income which is deemed to be its chargeable income.

     

    • As from 01/01/2017, companies should remit 50% of their CSR Fund to the MRA.
    • As from 01/01/2018, the 50% will be increased to 75%

     

    How will CSR be remitted to the MRA?

    The amount to be paid to the National CSR (NCSR) Foundation should be remitted to the MRA as follows:

    • 25% for each of the three quarters, together with the APS Statements; and
    • The remaining 25% together with the annual Income Tax return.

     

    In the case of a company having a turnover not exceeding Rs10 million which is not required to submit APS statements, the amount payable to the NSCR Foundation, together with any unspent amount should be remitted with its annual Income Tax return.

    Besides the 50% remitted to the MRA for the NCSR Foundation, the remaining balance of the fund should be used to implement a CSR programme. However, the CSR programme should not involve in the following activities:

    • Any activity discriminating on the basis of race, place of origin, political opinion, colour, creed or sex
    • Any activity promoting alcohol, cigarettes or gambling
    • Any activity targeting shareholders, senior staff or their family
    • Contribution to any Government department or parastatal body
    • Contribution to natural disasters mitigation programme
    • Contribution to political or trade union activities
    • Contribution to religious or spiritual activities
    • Sponsorship for the purpose of Marketing for companies
    • Staff welfare and training of employees.

     

    Any unspent amount, together with the 25% remaining in respect of the last quarter should be remitted to the MRA together with the annual Income Tax return.

     

    As from 01/01/2019, the balance of the fund should be used to implement a CSR programme or finance an NGO in the following priority areas as set out below:

    • Dealing with health problems
    • Educational support and training
    • Environment and sustainable development
    • Family protection, including gender-based violence
    • Fields of advocacy, capacity building and research for consideration as cross-cutting throughout the priority areas of intervention
    • Leisure and sports
    • Peace and nation-building
    • Road safety and security
    • Social housing
    • Socio-economic development as a means for poverty alleviation
    • Supporting persons with disabilities
    • Such other areas as the Minister may determine

     

    Note

    The priority areas specified in this part target individuals and families :

    1. registered under the Social; Register of Mauritius; and
    2. vulnerable groups under the Charter of the National CSR Foundation.

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  5. Doubt on Interpretation

    When a company is submitting its return of income and is in doubt regarding the interpretation of the law or treatment in respect of any matter to be included in its return of income, it may draw the attention of the Director General by specifying the doubt in its return.

     

    Where such doubt has been specified, the company will be treated as having acted in good faith and no penalty on late payment would be imposed in respect of any additional tax resulting from the adjustment relating to the doubt.

     

    However, when such doubt has not been specified, any additional tax from the adjustment relating to the doubt will attract penalty on late payment at the rate of 5%, except for companies having an annual turnover not exceeding 10million rupees where the penalty would be at the rate of 2%,

     

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  6. Amended Return

    A company is not allowed to submit an amended return after 3 years except where it is submitted in respect of undeclared or under-declared income.

     

    Amended return should be submitted electronically, stating the reason/s for each amendment made to the previous return.

     

    A company submitting an amended return would be deemed to have submitted that return on the date of submission of the new return. Accordingly, any payment of tax arising from the amended return would attract penalty on late payment of 5%, together with penalty of late-submission of Rs 2,000 per month upto a maximum of Rs 20,000.

     

  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 10 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 (including penalty for loss overclaimed)

    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 0.54% 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.

     

    Penalty for Loss overclaimed

     

    A company, which has claimed a loss in excess of the actual loss incurred or brought forward, would be liable to a penalty of up to 5% of the loss overclaimed. The penalty of 5% shall be offset against the amount of loss to be carried forward.

     

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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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