The Finance (Miscellaneous Provisions) Act 2022 came into force on 2 August 2022 and amended several statutory legislations to provide for the implementation of the measures announced in the financial budget 2022-2023. The following measures shall be deemed to have come into operation in respect of the income year commencing on 1 July 2022:
As per Section 31 (x) of the Finance Act, amending the First Schedule to the Income Tax Act, an individual earning annual net income
• of up to Rs 700,000 will be taxed at the rate of 10%
• above Rs 700,000 and not exceeding Rs 975,000 will be taxed at the rate of 12,5%
• above Rs 975 000 will be taxed at the rate of 15%
As per Section 31 (y)(i) of the Finance Act, amending the Second Schedule Part II Sub-Part A to the Income Tax Act, the maximum allowable deduction for petrol or travelling allowance paid to an eligible employee using his private car for the performance of his duties will be increased from Rs 11,500 to Rs 20,000.
Click here to access the Finance Act.
Mauritius Tax Changes August 2022
Summary of Annual Tax Changes:
1) New Tax Rates
|Annual Net Income||Tax Rate|
|Up to 700 000||10%|
|> 700 000 and up to 975 000||12,5%|
|> 975 000||15%|
2) Petrol or Travel Allowance
The maximum allowable deduction for petrol or traveling allowance paid to an eligible employee using his private car for the performance of his duties has been increased from Rs 11,500 to Rs 20,000.
Impact of the Mauritius Tax Changes on PaySpace
• The new tax rates and petrol/travel allowable limit have been implemented on the system effective 1 August 2022.
• Customers are reminded to migrate to the Cumulative Tax Method as from July 2022.
• All Mauritius payrolls have been recalculated.
Should you have any questions regarding the Sierra Leone Currency Redenomination, please feel free to visit our Support page for more ways to get in touch, or email us at [email protected].
The PaySpace Team