Mauritius Prime Minister and Minister of Finance presented the Budget Speech 2026/27 to the National Assembly on 19 June 2026, setting out proposed amendments to the Income Tax Act effective 1 July 2026.
What is changing
Expatriate income tax exemption
- A four-year income tax exemption has been introduced for expatriate employees of companies engaged in the manufacturing of solar photovoltaic systems.
Lump sum exemption threshold increase
- The exemption threshold on lump sum payments received as pension, retiring allowance or severance allowance increases from MUR 3 million to MUR 3.5 million.
New income tax bands
- A new tax band structure replaces the Fair Share Contribution for high income earners.
- The following income tax bands have been proposed:
Annual income (MUR) | Income tax rate (%)
|
0 - 500,000
| 0% |
500,000 - 1,000,000
| 10% |
1,000,000 – 12,000,000
| 20% |
More than 12,000,000
| 35% |
We will continue to closely monitor any further developments and provide timely updates as they arise.
Official source