These measures are in the Finance Bill 2025, approved by the National Assembly on 22 July 2025, but they are not yet law. They will take effect only once the Bill receives Presidential assent and is published in the Government Gazette. In practice, the Mauritius Revenue Authority (MRA) may issue a communiqué/circular instructing employers to apply certain budget measures (e.g. revised PAYE rates) before gazettement; if such an official notice is released, we will communicate further.
Revision to the definition of Exempt Person
The definition of “exempt person” under Section 2(a) has been amended:
Employees earning less than or equal to MUR 38,462 per month are now considered exempt persons, excluding directors.
Introduction of the Fair Share Contribution
The Fair Share Contribution has been introduced under the new Sub-Part AB of the Income Tax Act.
It applies to individuals whose income threshold exceeds MUR 12 million in an income year.
Definition of Income Threshold
Includes:
Excludes:
Contribution Rate
The Fair Share Contribution is levied at the rate of 15% of leviable income exceeding MUR 12 million.
Definition of Leviable Income
Includes:
Excludes:
The Fair Share Contribution must be declared by the individual in their Personal Income Tax Return, with a submission deadline of 15 October.
It will apply to income earned from 1 July 2025 and will remain in effect for two income years, up to and including the 2027–2028 tax year.
The contribution will be collected through the PAYE system.
Deduction for Dependent Child with a Disability
Section 27(6B) has been expanded to allow taxpayers to claim benefits derived by a bedridden next of kin or a child under the National Pensions Act or the Social Contribution and Social Benefits Act 2021.
Repeal of Specific Deductions and Reliefs
The following deductions and reliefs have been repealed:
Although Section 27DA (Donations to charitable institutions) was referenced in the budget speech, it is not included in the Finance Bill at this stage.
Chargeable Income | Rate of Income Tax |
First MUR 500,000 | 0% |
Next 500,000 | 10% |
Remainder | 20% |
Monthly Taxable Value of Car Benefit Revised
For cars costing up to MUR 3 million:
Cylinder Capacity | Previous | Revised |
Up to 1,600cc | 9,500 | 12,000 |
1,601 to 2,000cc | 10,750 | 13,500 |
Above 2,000cc | 12,000 | 15,000 |
|
|
|
Electric Car | NA | 13,500 |
For cars costing more than MUR 3 million:
| Previous | Revised |
More than MUR 3 million to MUR 5 million | NA | 25,000 |
More than MUR 5 million to MUR 8 million | NA | 35,000 |
More than MUR 8 million | NA | 50,000 |
Note: The changes to the car benefit, though announced in the budget speech, will be implemented through the Income Tax Regulations, which have not yet been published.
Final Note
The proposed effective date for these changes is 1 July 2025. We are closely monitoring all relevant authorities' websites for further updates on the implementation timeline.