Free invoice generator and tax tools for Mauritius

Income tax is charged under the Income Tax Act 1995 and collected by the Mauritius Revenue Authority (MRA). A company pays 15%. An individual, including a sole trader, pays on chargeable income at 0% on the first Rs 500,000, 10% on the next Rs 500,000 and 20% on the rest for the income year that began on 1 July 2025. The Finance Act 2026 (Act No. 14 of 2026, assented 12 August 2026) changes the top of the scale from the income year starting 1 July 2026: 20% now applies up to Rs 12 million of chargeable income and 35% above that.

Employers withhold income tax from salaries under the Pay As You Earn (PAYE) system (section 93) and pay it electronically by the end of the following month. Social contributions run alongside PAYE: the contribution under the Social Contribution and Social Benefits Act 2021, the National Savings Fund contribution and the training levy under the Human Resource Development Act 2003, all remitted to the MRA. Rates are on the payslip page.

The Finance Act 2026 is the most recent reform. Beyond the income tax scale, it raises the e-invoicing penalties from 1 October 2026 and introduces an insurance premium tax on general insurance policies entered into or renewed from 1 January 2027. Very small traders can elect a one per cent presumptive tax on gross income instead of the normal calculation, described on the small-business regime section of this page.

Mauritius has a presumptive tax for small enterprises under sections 111U to 111X of the Income Tax Act 1995. A small enterprise is a person whose activities fall in the Thirteenth Schedule (agriculture, forestry and fishing; manufacturing, excluding restaurants; retail of goods, including food sold to be eaten off the premises; wholesale of goods), whose gross income in the income year does not exceed Rs 10 million and whose gross income from other sources does not exceed Rs 400,000. It may elect, by irrevocable notice on or before the return due date, to pay presumptive tax at one per cent of gross income. The election removes the right to claim deductions, reliefs or allowances. Tax withheld at source is offset. Wilfully claiming to be a small enterprise to evade tax is an offence (section 146C), punishable by a fine of up to Rs 50,000 and imprisonment of up to 2 years.