The Finance Act 2025 received the Mauritius President’s assent on 8 August 2025. The finance act amends several laws to implement the measures announced in the Budget Speech delivered by the Minister of Finance on 5 June 2025.
Effective date: 1 July 2025.
Below are a few areas impacting on your payroll:
Exempt employee
No PAYE is required to be deducted from the monthly emoluments of an employee where such emoluments do not exceed Rs38 462 (for the 2024/2025 tax year it was Rs30 000).
Tax tables
|
From (Rs) |
To (Rs) |
Tax rate |
|---|---|---|
|
0.00 |
500 000.00 |
0% |
|
500 000.01 |
1 000 000.00 |
10% |
|
1000 000.01 |
and more |
20% |
Retirement age
National Pensions Act has amended the definition of "pension age" as per below; and the pension age has the same meaning for the National Savings Fund Act amended and the Social Contribution and Social Benefits Act 2021 amended.
Pension age:
Month and year of birth starting:
1965 September and after pension age = 61
1966 September and after pension age = 62
1967 September and after pension age = 63
1968 September and after pension age = 64
1969 September and after age = 65
Month and year of pension age is the month the employee reaches the age as per above (e.g. If month and year of birth is September 1965; then the month and year of pension age will be September 2026).
EDF Update
Deduction for Dependent Child with a Disability - dependent definition expanded to included bed ridden next of kin and child.
Remove the below exemptions, deductions and reliefs:
- Deduction for household employees
- Deduction for investment under Angel Investor Allowance
- Deduction for the adoption of animals
Fair Share Contribution
We are awaiting confirmation on some aspects of this change from the Mauritius authorities.
Applicable to individuals whose income threshold exceeds MUR 12 million in an income year levied at 15% of leviable income exceeding MUR 12 million. (More details on the tax summary part 13)
The Fair Share Contribution must be declared by the individual in their Personal Income Tax Return, with a submission deadline of 15 October.
It will apply to income earned from 1 July 2025 and will remain in effect for two income years, up to and including the 2027–2028 tax year.
The contribution will be collected through the PAYE system.
Company car benefit
We are awaiting confirmation on some aspects of this change from the Mauritius authorities.
For cars costing up to MUR 3 million:
Cylinder Capacity:
- Up to 1600cc Rs 12 000
- 1601 to 2000cc Rs 13 500
- above 2000cc Rs 15 000
- Electric Car Rs 13 500
For cars costing more than MUR 3 million:
- More than MUR 3 million to MUR 5 million Rs 25 000
- More than MUR 5 million to MUR 8 million Rs 35 000
- More than MUR 8 million Rs 50 000
Q. How do I apply the changes on my payroll?
Mauritius use Methods of Calculation for Statutory calculations including PAYE.
For assistance updating the the tax tables or calculations, reach out to your accredited Sage Business Partner or book a consultant.