The following payroll tax changes were released by the Mauritius Revenue Authority:

1. Income Exemption Threshold

All categories of Income Exemption Threshold have increased as follows:

2. Exempt Person

An exempt person means an employee whose emoluments in a month do not exceed Rs 25,000. An exempt person is not subject to PAYE tax deductions. However, it is to be noted that any fee paid by a company to its directors or by a statutory body to any member of its Board, Council, Commission or Committee, is subject to PAYE deduction at the rate of 15%.

 3. HRDC Training Levy

Previously:

Every employer is required to pay a training levy at the rate of 1.5% of the total basic wage or salary of its employees other than a household worker. For periods from July 2019 to June 2020, an employer is required to pay the levy at the rate of 1% for employees whose total basic wage or salary does not exceed Rs 10,000.

Currently:

For periods from 1 July 2020 to 30 June 2021, every employer shall, in respect of every employee, pay a training levy of 1%.

4. NPF and NSF Insurable Salary

Effective 1 July 2020, the minimum and maximum basic wage/salary on which contributions are payable are given in the table below:

Note that the NPF and NPS rates of contribution remain the same.

5. Contribution Sociale Généralisée (CSG)

The CSG will replace the NPF contribution as from 1 September 2020. Employers would have to file the last NPF contribution return in respect of the month of August 2020 by the due date of 30 September 2020. The CSG is payable to MRA in respect of the month of September 2020 and every subsequent month. For more information, please click here.

6. Solidarity Levy

Employers should now also deduct solidarity levy at the rate of 25% in respect of employees who derive emoluments above Rs 3 million annually.

The contribution of the solidarity Levy is based on the monthly emoluments above Rs 230,769. However, the levy deducted must not exceed 10% of the total emoluments.

Any lump sum paid by way of commutation of pension, death gratuity, or as consolidated compensation for death or injury under a Pension Act, Superannuation Fund, or Personal Pension Scheme is not liable to Solidarity Levy.

Click here for additional guidance on the computation of the solidarity levy to be withheld from monthly emoluments.

7. Portable Retirement Gratuity Fund (PRGF)

The obligation to submit monthly PRGF returns and make payment of contribution has been postponed to January 2022. However, employers may opt to file the monthly PRGF return and make payment of PRGF accordingly. Where an employee resigns or his employment is terminated, the employer has a legal obligation to submit an exit statement to MRA in respect of that employee. The Ministry of Social Security will thereafter notify the employer of the amount of PRGF to be paid to MRA in respect of past services of that employee.

8. Deduction for contribution to COVID-19 Solidarity Fund

An employee may deduct the amount contributed or donated to the COVID-19 Solidarity Fund in the income year commencing on 1 July 2020.

The deduction can be applied for on the EDF. Please click here to view the Mauritius EDF form 2020-2021

Please contact your consultant for assistance with the changes that need to be applied to the system.