Tax Band of 10%
- The annual net income subject to tax at a lower rate of 10% has been increased from MUR650,000 to MUR700,000
- Also, the individual will be entitled to a tax credit of 5% of his chargeable income when filing his personal tax return provided that his first month’s salary including salary compensation is less than MUR50,000.
Income Exemption Threshold
- Effective as from the income year starting on 1 July 2019, the Income Exemption Threshold for all category has been increased as detailed in Tax Rate Card.
Other Exemptions and Reliefs
- Deduction for Tertiary Education
- The deduction in respect of a dependent child pursuing a tertiary education can be claimed in respect of 4 dependents instead of 3 dependents.
- Relief for medical or Health Insurance Premium
- An individual will be allowed to claim up to MUR10,000 as relief for a 4th dependent.
- Acquisition of fast charger for an electric car
- The total Investment made in relation to the acquisition of a fast charger for an electric car can be claimed as a deduction from taxable income.
- Interest income derived from Peer-to-Peer lending will be subject to income tax at the rate of 3%
- Peer-to-Peer interest will not subject to any tax deducted at source
- Any bad debt and fees payable to the Peer-to-Peer Operator will be deductible from the taxable interest income.
- The definition of chargeable income under leviable income excludes any lump sum income received by way of commutation of pension, death gratuity or as a compensation for death or injury and will be effective retrospectively as from 1 July 2017
- Also, an individual’s share of dividend in a societé or succession will be included in the computation of the solidarity levy.