Member Article

In light of the widespread impact of the coronavirus (COVID-19), various tax measures that companies and individuals should be aware of have been announced by the Mauritius authorities:

WAIVER OF INTERESTS AND PENALTIES FOR LATE FILINGS OR LATE PAYMENTS

On 20 March 2020, the Mauritius Revenue Authority (“MRA”) issued a communiqué stating that taxpayers who are unable to submit returns, or effect payment of tax because of the lockdown will not be charged any penalty or interest for late submission/payment. In a further communiqué dated 1 April 2020, the MRA has brought some clarifications in respect of the said waivers. All penalties or interests will be waived in the following cases:

Returns/statements and payments that were due by 31 March 2020:

• taxpayers submitting their CPS (Current Payment System) Statement and Payment of Tax electronically for quarter ending 31 December 2019;
• companies submitting their APS (Advance Payment System) statement for quarter ending 31 December 2019 or companies required to submit their return and Payment of Tax for the accounting year ending in September 2019;
• remittance of Passenger Fee/Passenger Solidarity Levy;
• joint electronic PAYE and NPF/NSF (Pay As You Earn and National Pensions Fund and National Savings Fund) return and electronic payment of tax withheld;
• electronic submission of the VAT return for February 2020 and payment of tax electronically; and
• monthly return of TDS and electronic payment of tax deducted.
  
  

Payments that were due to the Customs Department:

• payments under the Deferred Payment Scheme for goods cleared during the month of February 2020 with payments due by 10 March 2020; and
• payments for bills of entry not submitted within the statutory time frame.
  
  

Gaming tax:

• returns and payments that were due on 20 March 2020 by gaming sector operators in respect of limited pay-out machines, casinos, gaming houses, coin-operated machines and amusement machines; and
• returns and payments that were due on 20 March 2020 and 27 March 2020 by betting operators (bookmaker conducting fixed odds betting on foreign football, local pool promoter and agent of a foreign pool promoter).
  
  

Taxpayers who are in a position to submit their returns and make any payment that is due can still do so through the e-Services portalof the Mauritius Revenue Authority.

TAX RELIEF FOR CONTRIBUTIONs/DONATIONs MADE TO THE COVID-19 SOLIDARITY FUND

On 1 April 2020, the Ministry of Finance, Economic Planning and Development has put a scheme in place to encourage individuals and companies willing to contribute to the COVID-19 Solidarity Fund (the “Fund”). The government will allow donators to deduct the amount contributed to the Fund from their taxable income.

Individual donors will be allowed to claim their deductions from the income tax that will become payable in September/October 2020 for donations made up to 30 June 2020. Additionally, for donations made from the 30 June 2020 to the 31 December 2020, individual donors will be able to claim their deductions from the income tax that will become payable in September/October 2021. Any unrelieved deduction in respect of this particular deduction in either of the aforementioned income years may be carried forward for a maximum of two successive income years.

A company having donated, and claiming deduction will be able to claim the deduction at the time of submission of income tax return.

Many companies and individuals will no doubt welcome these tax relief measures.

Reviewed by Thierry Koenig SA, head of ENSafrica (Mauritius) and Martine de Fleuriot de la Coliniere, an executive at ENSafrica (Mauritius).

Shrivan DabeeSenior Associate Mauritius[email protected]+230 5492 7834

Yashna MunbauhalAssociate Mauritius[email protected]+230 5970 4182

Valentin HardyAssociate Mauritius[email protected]+230 5934 6791

COVID-19, also known as the Coronavirus, is an infectious disease caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) that was declared a pandemic by the World Health Organization on 11 March 2020. The disease has since been reported in over 190 countries.