Section 3(b)(ii)  of the Contribution Sociale Généralisée (Amendment) Regulations 2021, No. 46 of 10 April 2021, excludes non-citizen employees who are not resident under section 73(1)(a) of the Income Tax Act.

An individual is tax resident in Mauritius when:

(i) has his domicile in Mauritius unless his permanent place of abode is outside Mauritius or

(ii) has been present in Mauritius in that income year, for a period of, or an aggregate period of, 183 days or more or

(iii) has been present in Mauritius in that income year and the 2 preceding income years, for an aggregate period of 270 days or more.

 This means that, no CSG contribution is payable to the Mauritius Revenue Authority (MRA) for employees who are non-citizens and non-tax residents.

 The amendment is deemed to have come into effect on 1 September 2020. Employers should identify the affected employees and exclude them from the CSG contributions immediately.

It is unclear how and when MRA will refund the contributions made for the affected employees in the previous months. Employers should enquire with the MRA.

Payroll System Changes:

Users will be required to unlink non citizen employees who are not resident, from the applicable method of calculation created for CSG, on their payroll. 

Should you require assistance with the set up, please contact your Business Partner.