The Minister of Finance presented the Budget speech for 2015-16 to the parliament on 23 March 2015. The most important changes are summarized below:

Corporate taxation:

  • Interest payments to non-resident companies on bonds listed in the stock exchange will be exempt from income tax.
  • Small and medium enterprises (SMEs) registered under the Small and Medium Enterprise Development Authority (SMEDA) scheme after 1 June 2015 will be exempted from corporate tax for a period of 8 years.
  • A “Bio Farming Development Certificate” will be introduced along with a package of tax incentives, including an 8-year tax holiday.
  • The accelerated annual allowance provisions in the Income Tax Act will be improved to facilitate the modernization programed. Accordingly, an extension of the accelerated annual allowances for 3 additional years up to 30 June 2018 will be introduced with respect to the following investments:
  • Equipment costing MUR 50,000 or less (100%, i.e. fully expensed);
  • Industrial premises dedicated to manufacturing (30% reducing balance);
  • Electronic and high-precision machinery, including computer hardware and software (50% straight line);
  • Scientific research (50% straight line).
  • The alternative minimum tax (AMT) will be removed for all sectors.

Individual taxation:

  • An incentives package is introduced to encourage Mauritian nationals who have worked a minimum period of 10 years abroad to return to their home country. This will include an exemption from income tax on their worldwide income for a period of 10 years.
  • The additional deduction in respect of children, who are pursuing university studies, whether in Mauritius or abroad, will be increased to MUR 135,000 per child. Moreover, the allowable number of years of studies will be increased from 3 years to 6 years.
  • The exemption threshold on the lump sum received as pension, retiring allowance or severance allowance will be raised from MUR 1.5 million to MUR 2 million.
  • The mortgage interest deduction scheme will be enhanced. Accordingly, first-time homeowners can claim relief for the full amount of interest paid on a mortgage loan and for the full duration of that loan. Currently, the interest relief provisions limit the deduction to the first 5 years and to a maximum amount of MUR 120,000 per year.
  • The income exemption thresholds will be increased by MUR 10,000. Accordingly, the exemption thresholds.
  • Individuals investing in a solar energy unit will be allowed to deduct from their taxable income the total amount invested in such a unit, including photovoltaic kits and batteries for storage of electricity.