The below proposals were made in the 2026/2027 budget speech for Mauritius.
1. Introduction of new tax bands:
- 20% on income above Rs 1 million up to Rs 12 million
- 35% on income above Rs 12 million
|
From (Rs) |
To (Rs) |
Tax rate |
|
0.00 |
500 000,00 |
0% |
|
500 000.01 |
1000 000,00 |
10% |
|
1000 000.01 |
12 000 000,00 |
20% |
|
12 000 000.01 |
and more |
35% |
The proposed rates replace the existing fair share contribution mechanism. Instead of charging an additional 15% FSC, it is worked in on the normal tax tables. Therefore, there will be no need to consider other non-payroll income e.g. Source dividends income.
The FSC applies only for the 2 years ending 30 June 2028. It is unclear at this stage if the rate of 35% will also be for this limited period.
2. Establishment of a new National Pension and Provident Fund (NPPF) from 01 July 2027, replacing the NSF and PRGF.
3. The tax-exempt threshold for lump sums received as pension, retiring allowance, or severance allowance is proposed to increase from: Rs 3 million to Rs 3.5 million.
4. A qualifying expatriate employee of a company engaged in the manufacturing of solar photovoltaic systems will benefit from an income tax holiday for a period of 4 years.
Take note: These proposed changes are awaiting promulgation. We'll notify you here on Community Hub once we've received confirmation.
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.
- Sage 300 People offers Mauritius as a tax country. Leave your details to find out more about this product.