- Penalty for late submission of annual return of income
Every person who is required to submit a return and who fails to do so, shall be liable to pay a penalty of Rs 2,000 per month until the time the return is submitted, up to a maximum of Rs 20,000. However, where the person is a small enterprise having an annual turnover not exceeding 10 million rupees or an individual who is not in business, the maximum penalty is Rs 5,000.
- Penalty for late payment of tax
A penalty of 5 % of the amount of tax is payable in case of late payment. However, where the person is a small enterprise having an annual turnover not exceeding 10 million rupees or an individual who is not in business, the rate of penalty is 2 %.
- Interest for late payment of tax
In case of late payment, enter 0.5% of the balance of tax payable at section 29 for each month or part of the month during which the tax remains unpaid after the due date.
Tax Arrears Settlement Scheme (TASS)
- Full waiver of penalty and interest for tax debt and tax arrears outstanding as at 30 June 2025, provided the taxpayer registers by 30 November 2025 and pays the tax amount in full by 31 March 2026.
Tax Dispute Settlement Scheme (TDSS)
- Applies to cases under litigation as of 05 June 2025 and runs until 31 March 2026. Under TDSS, taxpayers who withdraw their cases from the Assessment Review Committee (ARC), the Supreme Court (SC) or the Privy Council (PC) and have outstanding tax claims will be granted a full waiver of penalties and interest.
- Outstanding tax due to be paid by 31 March 2026 to benefit from the scheme.
- No tax, penalty or interest paid will be refundable under this scheme, except where the case is before the SC and the tax has already been settled.
Voluntary Disclosure Settlement Scheme (VDSS)
- Applies to taxpayers who have
- undeclared or under-declared income in respect of year of assessment 2024/2025 or any preceding years; or
- taxable supplies for taxable period ended 30 April 2025 or any preceding periods.
- A taxpayer will benefit from a full waiver of penalties and interests. The VDSS will be available until 31 March 2026, with all payments required by that date.
- A taxpayer may apply for the VDSS schemein respect of an assessment raisedafter 5 June 2025, under ITAor Value Added Tax Act (VAT Act),if any of the following actions have been taken and the litigation is still pending as of 31 March 2026:
- Objection made;
- Representations lodged to theARC (now replaced by the Revenue Tribunal); or
- Appealto the SC or PC made.
Registration of tax agents
- All tax agents arerequired to register with the MRA to be able to
- Prepare or submit a tax return on behalf of a taxpayer; or
- Represent a person before the MRA, ATDRPanel and the ARC.
- A committee will be set up to process any application made.
- To be able to register as a tax agent, the following conditions must be met for:
Individual- Citizen of Mauritius; and
- Member ofthe MIPA; or
- A law practitioner; and
a. satisfies the committee that he has at least 3 years’ experience in dealing in accounting or tax matters in the employment of, a person who is a member of the MIPA or, a person registered as a tax agent; or
b. is a person holding a degree in the field of taxation, accountancy, economics, business management or any other related field as the committee may determine.
Corporate entity
- Registered with the MIPA as a public accountant; or
- The person nominated by it to act on its behalf under this Part satisfies the conditions specified above.
The registration of a tax agent or their nominee is valid for a maximum of 5 years.
Arm's length test
- Effective from date gazetted, companies engaging in related party transactions will be required to prepare and keep records in such manner as may be prescribed.
- "Connected persons" will be defined as any 2 or morepersons, where one controls, by reason of his relationship or otherwise with any other person, the business or income earning activity of the other, in Mauritius or from Mauritius.
- “Transaction" will be defined as:
- any transaction or series of transactions, carried out directlyor indirectly, between connected persons,whetherenforceableor intendedto been forceable, by legalproceedings;and
- includes a transaction between a person and a cross-border business or otherincome earning activity of the same person.
The total amount of penalty and interest imposed shall not exceed 100% of the tax due except for the following:
- Failure to apply for compulsory registration;
- Failure to issue fiscal invoices;
- Misuse of or tampering with the e-invoicing system;
- Non-submission of return by due date; or
- Failure to join electronic system.
- Failure by a person to give access to computers and other electronic devices requested by MRA will be an offence and the person will, on conviction, be subject to a fine not exceeding Rs200,000 and to imprisonment not exceeding 5 years.
- A person will, on conviction, be liable to a fine not exceeding Rs 100,000 and to imprisonment for a term not exceeding 3 years for the following offences.
- Failure to keep records, produce books and records or provide any other information required by MRA for the purpose of ascertaining the tax liability of a person;
- Failure of a VAT registered person to issue a VAT invoice;
- Failure of a VAT registered person to change his taxable period from quarterly to monthly when his annual turnover exceeds Rs 10 million; and
- Contravening any other provisions of the VAT Act/Regulations other than (1) a person claiming to be VAT registered or (2) obstructing an officer of MRA in his functions.
- A person will, on conviction, be liable to a fine not exceeding Rs 500,000 and to imprisonment for a term not exceeding 5 years for the following offences:
- Making an incorrect return or statement;
- Making an incorrect claim for repayment in respect of capital goods;
- Giving incorrect information in respect of tax liability;
- A person claiming to be VAT registered when he is not; or
- Obstructing an officer of MRA in his functions.
- The fine will henceforth be an amount not exceeding Rs1,000,000 for:
- Failure to register for VAT purposes;
- Failure to submit a VAT return and pay any tax due; or
- Submission of false returns, books, records, VAT invoices, documents or information with intent to evade VAT.
- Where a person is convicted of an offence under section 55(a) or (b) of the VAT Act, he shall be ordered by the court to submit the return or statement, as the case may be, within such time as the court may determine.