Tax highlights 2025 Mauritius Budget

The National Budget 2025-26 for Mauritius was presented on 5 June 2025 under the theme-“From Abyss to Prosperity: Rebuilding the bridge to the future”. A snapshot of some of the measures under the various tax types is provided below.

• The tax bands is being reduced from eleven to three as follows:

1. Up to Rs 500,000 of annual chargeable income, the tax rate will be zero;

2. The next Rs 500,000 of annual chargeable income will be taxed at 10%; and

3. Any remaining chargeable income in excess of Rs 1,000,000 will be taxed at the rate of 20%

• Individuals with annual net income exceeding Rs 12 million, including dividend income, will be required to pay 15% on their chargeable income as Fair Share Contribution.

• The monetary values of fringe car benefits to be included in the gross income of an employee provided with a company car are to be reviewed upwards.

• A Qualified Domestic Minimum Top-Up Tax will be applicable on resident subsidiaries and holding companies of Multinational Enterprises resident in Mauritius, ensuring a minimum effective tax rate of 15%.

• An alternative minimum tax of 10% of book profits is to be introduced on entities operating in the hotels, insurance, financial intermediation, real estate, and telecommunication sectors.

• Introduction of a contribution of 2% or 5% as Fair Share Contribution on the chargeable income of companies having annual chargeable income exceeding Rs 24 million as from 1 July 2025 for a period of three consecutive years.

• Businesses will compulsory be required to register for VAT purposes upon making a turnover of taxable supplies exceeding Rs 3 million instead of the current Rs 6 million.

• The e-invoicing system will be extended to suppliers exceeding an annual turnover of Rs 80 million, thus bringing a wider segment of businesses into the scope of real-time in