Key measures include a new 2% tax on business taxable income, known as Climate Responsibility Tax (CRT), which applies to companies, resident companies, trusts and foundations.
The Corporate Climate Responsibility (CCR) Levy is a new fiscal measure in Mauritius designed to fund the "Climate and Sustainability Fund," which supports environmental and climate change initiatives in Mauritius.
Starting from the assessment year beginning July 1, 2024, and the financial year ending as from January 2024, companies with an annual turnover exceeding MUR 50 million are required to pay the levy. The turnover includes all sources of gross income such as business revenue, property income, dividends, and other earnings.
The CCR Levy is set at 2% of the company's chargeable income for the year.
Companies can use Foreign Tax Credits to reduce their CCR liability.
Consequently, the impact of the CCR Levy on the effective tax rate of companies from Year of Tax Assessment 2023/2024, to Year of Tax Assessment 2024/2025 can be summarized as follows:
- Domestic company: from 17% to 19%
- Global Business Company not claiming the 80% partial exemption: from 15% to 17%
- Global Business Company claiming the 80% partial exemption: from 3% to 3.4%
- Companies engaged in Export of goods: from 3% to 5%
- Companies claiming Foreign Tax Credit: from 0% to between 0% to 2%
New tax incentives have also been introduced, such as deductions on certain donations and an additional tax credit for crèches.
The system for paying tax arrears has been extended by a year, with full exemption from penalties and interest.
As a reminder, the budget was published in July and analysed in our article: https://rosemont-int.com/fr/article/news/maurice-budget-national-2024-2025
For more information, please contact office@rosemont.mu