The Honourable Dr Renganaden Padayachy, Minister of Finance, Economic Planning and Development presented the Budget Proposal 2021-2022 to the National Assembly on Friday 11 June 2021, detailing the changes for the 2021-2022 tax year.
The changes were promulgated in the Finance Act 2021, Act No.15 of 2021 issued on the 5th of August 2021.
The Third Schedule Part II confirms an increase of Rs 5 000 in the maximum allowable deduction for medical insurance premium for self and dependents.
Click here for the official Finance Act.
Mauritius Budget Proposal 2021-2022 Highlights
The medical aid premiums have been updated effective 1 July 2021:
|Categories for Medical Insurance or Premium||Total Premium Allowable Jul-21|
|Category A – Self (Max Rs 20 000)||20 000.00|
|Category B – 1st Dependent (Max Rs 20 000)||40 000.00|
|Category C – 2nd Dependent (Max Rs 15 000)||55 000.00|
|Category D – 3rd Dependent (Max Rs 15 000)||70 000.00|
|Category E – 4th Dependent (Max Rs 15 000)||85 000.00|
Impact of the Mauritius Budget Proposal 2021-2022 on payroll:
- The changes have been implemented on the system effective 01 July 2021.
- Customers must ensure that they are on the Averaging (YTD) Tax Method as these changes are effective 01 July 2021. Customers opting to remain on the Non-Cumulative (MTD) Tax Method, are expected to post manual adjustments using the ‘PAYE Adjustment’ component.
- Further statutory changes have been announced and will be implemented in due course.
Should you have any questions regarding this change, please feel free to visit our Support page for more ways to get in touch, or email us at [email protected].
The PaySpace Team