The Finance Act 2025 (Act No. 18 of 2025) has been published in Government Gazette No. 66 on 9 August 2025. This Act introduces several amendments to the Income Tax Act, with certain provisions impacting payroll from 01 July 2025.
Revision to the ‘Exempt person’ definition – section 2(a)
- The monthly threshold for an employee to qualify as an exempt person has increased from MUR 30 000.00 to MUR 38 462.00.
- Directors remain excluded from this category.
Amendments to tax deductions and reliefs
Note: All deductions and reliefs, including the changes below, are applied via the Employee Declaration Form (EDF) process managed by the Mauritius Revenue Authority (MRA). Ensure to apply the 2025/2026 EDF MRA provided values.
- Dependent child with a disability – section 27(6B)
- This provision now also applies where a bedridden next of kin or child receives benefits under the Social Contribution and Social Benefits Act 2021, in addition to the National Pensions Act.
- Removal of certain deductions and reliefs:
- The following have been repealed and will no longer apply from the 2025/2026 tax year:
- Section 27D: Deduction for household employees.
- Section 27K: Relief for adoption of animals.
- Section 28: Angel investor allowance.
- The following have been repealed and will no longer apply from the 2025/2026 tax year:
Revised Individual Income Tax Rates – First Schedule, Part I
- First MUR 500 000.00 – taxed at a rate of 0%.
- Next MUR 500 000.00 – taxed at a rate of 10%.
- Remainder – taxed at a rate of 20%.
Click here to access the official government document.
Summary of ChangesÂ
The tax tables have been updated as follows:
| Lower Income Limit | Upper Income Limit | Income Threshold | Marginal Rate | Tax on Threshold |
| 0.00 | 500 000.00 | 0.00 | 0% | 0.00 |
| 500Â 000.00 | 1Â 000Â 000.00 | 500Â 000.00 | 10% | 0.00 |
| 1Â 000Â 000.00 | 999Â 999Â 999.99 | 1Â 000Â 000.00 | 20% | 50Â 000.00 |