What You Need to Know About Mauritius Corporate Tax

At just 15%, Mauritius has one of the lowest corporate tax rates in Africa, which is a key reason the island is a popular hub for international business. However, companies with turnover above MUR 50 million also face a 2% Corporate Climate Responsibility Levy, and those with prior-year gross income over MUR 10 million must make quarterly advance payments through the APS system. This guide explains how all the pieces fit together.

1. What is Corporate Tax?

Corporate tax is the income tax levied on the profits of companies operating in Mauritius. The standard rate is 15%. Banks are subject to a split rate: 5% on the first MUR 1.5 billion of chargeable income and 15% on the remainder. Companies with turnover exceeding MUR 50 million are also subject to a Corporate Climate Responsibility (CCR) Levy at 2% on chargeable income. Corporate tax is administered by the Mauritius Revenue Authority (MRA).

2. Who does it apply to?

This usually applies to:

All companies incorporated in Mauritius
Foreign companies with a permanent establishment in Mauritius
Branches of foreign companies operating in the country
Authorised companies (Global Business Licence holders)
Resident societes with turnover exceeding MUR 50 million (for the CCR Levy)
Non-resident companies earning income from Mauritius sources

3. Why does it matter?

Understanding corporate tax helps you:

Stay compliant with tax laws enforced by the Mauritius Revenue Authority
Avoid penalties and late fees for missed filings or underpayment
Keep proper records to support your tax return
File and pay correctly through the MRA e-services portal
Plan your cash flow better by estimating your tax liability in advance

4. How does it work?

Here's the basic process:

Register your company with the MRA and obtain a TAN
Maintain proper books of account throughout the financial year
Calculate your taxable profit by deducting allowable expenses from gross income
Apply the 15% corporate tax rate
If your prior year gross income exceeded MUR 10 million and you had chargeable income, make quarterly Advance Payment System (APS) payments
File your annual income tax return (IT Form 3) within six months of your financial year-end
Pay any balance of tax outstanding when you file

5. What forms are involved?

IT Form 3 (Corporate Income Tax Return) - The main annual return for companies reporting taxable income
APS Statement (Advance Payment System) - Quarterly statements for companies required to make advance tax payments
CCR Levy Declaration - For companies with turnover exceeding MUR 50 million
Withholding Tax Return - Filed when tax is withheld on dividends, interest, or royalties paid to non-residents

6. What information do you need?

Before handling corporate tax, make sure you have:

Your company's MRA TAN and e-services portal login
Audited financial statements or management accounts
A schedule of all income and revenue for the financial year
Records of all allowable business expenses and deductions
Capital allowance schedules for depreciable assets
Details of any tax losses being carried forward
Records of withholding tax deducted at source
Prior year gross income to determine APS eligibility

7. Important deadlines

Filing frequency: Annually, with quarterly APS payments if applicable
Payment deadline: APS statements and payments are due within 3 months of the end of each APS quarter. The annual return (IT Form 3) is due within six months of the financial year-end.
Year-end requirements: File IT Form 3 with supporting financial statements within six months of year-end

8. Common mistakes to avoid

Forgetting to make APS payments if your prior year gross income exceeded MUR 10 million
Not accounting for the 2% CCR Levy if your turnover exceeds MUR 50 million
Claiming expenses that are not allowable for tax purposes
Not keeping supporting documents for the required retention period
Underestimating APS quarterly payments and facing penalties at year-end
Not taking advantage of available tax incentives for qualifying sectors

9. Simple example

Your company in Port Louis earns MUR 10,000,000 in gross revenue for the financial year. Your allowable business expenses total MUR 7,000,000.

Taxable profit (chargeable income): MUR 10,000,000 - MUR 7,000,000 = MUR 3,000,000

Corporate tax at 15%: MUR 3,000,000 x 15% = MUR 450,000

If your turnover exceeds MUR 50 million, you would also owe: CCR Levy at 2%: MUR 3,000,000 x 2% = MUR 60,000

If you made quarterly APS payments of MUR 100,000 each (MUR 400,000 total), your balance due at filing would be: MUR 450,000 - MUR 400,000 = MUR 50,000

You would file IT Form 3 and pay the MUR 50,000 balance within six months of your year-end.

10. FAQ

Q: What is the corporate tax rate in Mauritius? A: The standard rate is 15%. Banks pay 5% on the first MUR 1.5 billion and 15% on the rest.

Q: What is the Advance Payment System (APS)? A: APS requires companies whose prior year gross income exceeded MUR 10 million (with chargeable income) to make quarterly advance tax payments.

Q: What is the CCR Levy? A: The Corporate Climate Responsibility Levy is 2% on chargeable income (including exempt income) for companies and resident societes with turnover exceeding MUR 50 million.

Q: When is the annual corporate tax return due? A: IT Form 3 must be filed within six months of the end of your company's financial year.

Q: What happens if I file my corporate tax return late? A: Late filing attracts a 5% monthly surcharge on outstanding tax, up to a maximum of 100%.

11. Final takeaway

Corporate tax at 15% is competitive by global standards, and Mauritius offers a business-friendly environment. Filing IT Form 3 on time and keeping up with APS payments keeps your company compliant with the MRA.

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What you need to know about Mauritius corporate tax: The standard rate is 15%, the CCR Levy adds 2% for larger companies, and IT Form 3 is due within six months of year-end through the MRA portal.

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