On 26th of July 2024, the President of the Republic of Mauritius, Prithvirajsing Roopun, signed the Finance Act 2024 into law, bringing the following changes to the Income Tax Act affecting payroll into effect:
Exempt Income
• The exempt threshold for lump sums received as pension, retiring allowance, or severance allowance has been increased to Rs 3 million, effective from 7 June 2024.
Personal Deductions and Reliefs
• An increase to Rs 100,000 for donations to NGOs and charitable institutions, effective from 1 July 2024.
• A new income tax deduction of Rs 30,000 is available for employing a carer for parents or grandparents, effective from 1 July 2024.
• An income tax deduction of Rs 60,000 per child per annum has been introduced for parents with children in full-time education at fee-paying private schools, effective from 1 July 2024.
Employers must log in to the MRA e-service platform to download the Electronic Declaration Form (EDF) for each employee, which details the reliefs, allowances, and deductions claimed for the income year 2024/2025.
If an employee has not submitted their EDF for the income year 2024/2025, employers should use the reliefs, allowances, and deductions claimed in the employee's EDF for the income year 2023/2024.