The Mauritius Revenue Authority (MRA) is introducing a tax reform of the income tax system as from 1 July 2023.
See MRA circular for more details:
MRA Circular - PayrollTaxes - 19 June 2023.pdf
According to the attached MRA circular, the PAYE tax calculation has been simplified and the following are the changes:
1. Income Exemption Thresholds (IET)
IET is abolished. Employees will now receive a tax deduction based on the number of dependents that they have.
|
Dependents |
Annual Deduction |
|
0 |
0 |
|
1 |
110 000 |
|
2 |
190 000 |
|
3 |
275 000 |
|
4 or more |
355 000 |
All other deductions reliefs and allowances remain unchanged.
Employee Declaration Form (EDF) is submitted electronically on the MRA website www.mra.mu by 30 June 2023.
Reliefs, allowances and deductions are implemented as per the new EDF as from the month of July 2023.
2. Tax rates
A progressive tax table has been introduced. The attached circular has an example of how the new tax table should be applied.
|
Annual Chargeable Income (Rs) |
Tax rate |
|
First 390 000 |
0% |
|
Next 40 000 |
2% |
|
Next 40 000 |
4% |
|
Next 60 000 |
6% |
|
Next 60 000 |
8% |
|
Next 300 000 |
10% |
|
Next 300 000 |
12% |
|
Next 300 000 |
14% |
|
Next 400 000 |
16% |
|
Next 500 000 |
18% |
|
On the remainder |
20% |
3. Exempt employees
No PAYE is required to be deducted from the monthly emoluments of an employee where such emoluments do not exceed Rs 30 000.
4. Flat rate
- Where an employee who derives emoluments exceeding Rs 30,000 in a month and he has not submitted an EDF - flat rate of 15%
Unless the employee makes a request to the employer for PAYE to be withheld at the rate of 20%.
- Fees payable to a company director or a member of a Board, Council, Commission, Committee of a statutory body - flat rate of 15%
Unless the director or board member makes a request to the company or the person responsible for the payment of the emoluments for PAYE to be withheld at the rate of 20%.
5. Tax calculation
PAYE tax is still calculated on a cumulative basis.
A PAYE tax calculator is available on the MRA website https://eservices.mra.mu/taxcalculator/viewCalculate
6. Solidarity Levy
Solidarity is abolished with effect from the income year commencing on 1 July 2023.
Employers are required not to deduct PAYE for Solidarity Levy as from July 2023.
How do I apply the changes on my payroll?
Mauritius use Methods of Calculation for Statutory calculations including PAYE.
Should you require assistance in updating the the tax tables or calculations, please reach out to your accredited Sage Business Partner or book a consultant.