Self Employed / Current Payment System (CPS)
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Who is a self-employed?
A self-employed person is one who does not have a contract of employment and who derives income from any trade, business or profession in his own name or also from rental of property.
- Business Registration Number (BRN)
Any individual conducting business in Mauritius should obtain his Business Registration Number (BRN) from the Companies and Business Registration Department. The BRN should be indicated on all invoices issued by him.
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Obligations for Submission of CPS
A CPS Statement of Income should be submitted quarterly to the Director General by every self-employed taxpayer deriving business income (Including Income from Profession, Vocation or Occupation) and rental Income where:
- the gross income falling under CPS for the preceding income year exceeded Rs 4 million; and
- the tax payable on the chargeable income exceeds Rs 500
- Due Dates
The Current Payment System (CPS) for self employed people is on a quarterly basis:
In respect of CPS quarter Due date for submission of CPS Statement and payment of tax 1 Jul to 30 Sept 2 days excluding Saturdays and public holidays before the end of December 1 Oct to 31 Dec 31 March 1 Jan to 31 March 2 days, excluding Saturdays and public holidays, before the end of June No need to submit for the 4th quarter, since taxpayer is required to submit Annual Return on 30 September.
- Rate of tax payable under CPS
The Chargeable Income of a quarter is taxed at the rate of 15%
- Penalty & Interest
- Late Submission of statement of income
A penalty of Rs 2,000 per month or part of the month until such time as the Statement of Income is submitted provided that the total penalty payable shall not exceed Rs 6,000 per Statement of Income.
- Late Payment of tax under CPS
A penalty of 5% of the amount of tax remaining unpaid and interest at the rate of 0.5% per month or part of the month during which the tax remains unpaid.
- Late Submission of statement of income
- Annual Return
Every person who is required to submit a Statement of Income under the CPS shall at the end of the income year, submit to the Director- General the annual return in due date.
Where an individual fails to submit the annual return, he shall be liable to pay to the Director-General penalty and interest.
- Due Dates for CPS Statements
Return / Submission Date : 30 September
Payment Date : 30 September*
* Next working day if 30 September is a Sunday or Public Holiday
The deadline is 15 October for taxpayers filing their returns electronically and effecting payment, if any, using ATM, mobile payment and direct debit.
Obligation to file a return
Income Tax Returns for individuals
An individual who is in receipt of emoluments, pension or deriving income from trade, business, profession, agriculture, rents and other sources should fill in a return of income if he:
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is registered at the MRA ,i.e has been allocated a Tax Account Number
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derives a chargeable income whether he is registered or not
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Net Income exceeding the Reliefs, Deductions & Allowances Category A per year
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Gross income from business exceeding Rs 2 million per year
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Emoluments from which tax has been withheld
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Income which has been subject to tax deduction at source
Calculation of chargeable income
Chargeable income = Gross Income – allowable deductions – Exemptions and reliefs.
Allowable deductions include expenditure incurred in the production of income ,losses ,bad debts and annual allowance(instead of depreciation)
Tax Rates
An individual is taxed on his annual chargeable income as follows :-
|
Annual Chargeable Income |
Rate of Income tax |
Annual Chargeable Income |
Rate of Income tax |
|
First Rs 390,000 |
0% |
Next Rs 300,000 |
12% |
|
Next Rs 40,000 |
2% |
Next Rs 300,000 |
14% |
|
Next Rs 40,000 |
4% |
Next Rs 400,000 |
16% |
|
Next Rs 60,000 |
6% |
Next Rs 500,000 |
18% |
|
Next Rs 60,000 |
8% |
On the remainder |
20% |
|
Next Rs 300,000 |
10% |
New Employees
First employment
Where a person, other than an exempt person, takes up employment for the first time, he should, as soon as possible, furnish an Employee Declaration Form (EDF) duly filled in to his employer to enable the latter to take into account his Reliefs, Deductions & Allowances for the purpose of calculating the amount of tax to be withheld from his emoluments.
For more information, kindly click on Guide on Income Tax and Employees taking up Employment for the first time.
Foreign Income
Foreign income means income derived from outside Mauritius. It shall include emoluments, directors’ fees, annuity, and pension in respect of past services, business income, rental income, investment income and interest income. The foreign income is taxable in the hand of the resident.
Residence
Resident individual ,means a person who has his domicile in Mauritius unless his permanent place of abode is outside Mauritius or has been present in Mauritius in that income year, for a period of, or an aggregate period of 183 days or more; or for an aggregate period of 270 days or more in the 2 preceding income years.
When the residence rule criteria is satisfied then the resident individual will be subject to income tax in Mauritius on all his income derived in Mauritius or remitted to Mauritius. Furthermore, he will be entitled to Reliefs, Deductions & Allowances.
Where a person wishes to be certified as a resident in Mauritius in respect of an income year, he should apply to the Director-General for a Tax Residence Certificate.
Nonresidents will only be subject to income tax on net income, derived from or accruing in Mauritius but he will not be entitled to Reliefs, Deductions & Allowances.
