The Finance (Miscellaneous Provisions) Act 2022 has been enacted and is effective from 1 July 2022.

MRA Circular - PayrollTaxes - Aug 2023.pdf

The following key changes that affect payroll taxes,  was published by the Mauritius Revenue Authority Circular letter nr.2 on 10 August 2022

1. Tax Rates

 The tax rate applicable for PAYE, where the employee has submitted an Employee Declaration Form (EDF), is based on the Average Cumulative Monthly Salary (ACMS) of an employee as follows: 

Take note, there has not been any indication at this point in time if the introduction of the new tax bracket has turned the tax tables into graduated tax, or if all income is taxed according to the tax rate of the bracket. 

No EDF

• Where the employee has not submitted an EDF and the emoluments derived by him in a month exceed Rs25 000, the tax rate applicable is 15%.

Exempt employee

• An exempt person means an employee whose emoluments in a month do not exceed Rs25 000.

Directors/Members fees

• Employers are required to withhold PAYE at the rate of 15% from any fee paid by a company to its directors or by a statutory body to any member of its Board, Council, Commission or Committee.

2. Income Exemption Threshold (IET)

There is no change with respect to IET for the income year 2022-2023. The IET amount remains as follows:

 3. Relief for Medical Insurance premium or contribution 

4. Additional exemption in respect of dependent child pursuing undergraduate course

The additional exemption in respect of dependent child pursuing a non-sponsored full-time undergraduate course at a recognised institution in or outside Mauritius has been increased to Rs500 000.

5. Deduction for donation to charitable institutions

The maximum amount of deduction with respect to donations to a charitable institution including a Religious Body has been increased to Rs50 000.

6. Deduction for contribution made to approved personal pension schemes

The maximum amount of deduction with respect contributions to an individual pension scheme approved by the Financial Services Commission for the provision of a pension has been increased to Rs50 000.

7. Employee Declaration Form (EDF)

EDF is no longer a manual form.

All employees are required to submit their EDFs electronically using the facility available on MRA website (www.mra.mu). The procedure for the electronic submission of the EDF is also available on MRA website.

Employers are required to use their Employer Registration Numbers (ERN) and password to access the facility available on the MRA website and download an excel file showing the reliefs and deductions claimed by their employees in their e-EDFs.

Note: Please contact your Sage Business Partner consultant for assistance in amending your payroll application calculations to align with the new tables and changes. 

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