On June 7, 2023, Mr. Ramdin from the MRA, along with Mr. Balloo from KPMG, presented an overview of the tax implications arising from the budget. It was emphasized that every business must adopt a smart point of sale (POS) system and implement electronic invoicing. The smart POS will establish a seamless connection with the MRA (Mauritius Revenue Authority) for efficient exchange of information. The company’s invoice details will be automatically transmitted to the MRA, and VAT forms can be pre-filled by the MRA. These measures aim to minimize paperwork, including the submission of annual purchase records for goods and services. The implementation of these measures will follow a phased approach, initially targeting larger companies.
The solidarity tax has been eliminated, addressing concerns about the unfair burden of a 40% tax on certain individuals. A more progressive tax system has been introduced, ensuring fairness in taxation. Non-tax residents are now eligible for income tax exemption. Additionally, the tax rebate on home ownership has been extended to incentivize buyers. Furthermore, the promotion of electric car purchases aims to foster a greener economy.
Companies with over 250 staff members are now required to provide a child care facility (creche) for their employees. There has been an increase in duty for companies holding immovable property. The tax appeals process is currently under review due to concerns about lengthy timelines.
