Mauritius: Amended pension measures, implications for non-citizen, non-tax resident employees

Amendments to CSG exclude from the pension regime a non-citizen employee who is a non-resident under the income tax law

Amendments to the “Contribution Sociale Généralisée (CSG) Regulations 2020”

Amendments to the “Contribution Sociale Généralisée (CSG) Regulations 2020” exclude from the pension regime a non-citizen employee who is a non-resident under the income tax law. The amendments are effective retroactively as of 1 September 2020.

With these amendments, there are certain considerations or action steps for employers that have employees who may be affected by the changes. For instance, for April 2021, no CSG contribution is payable to the Mauritius Revenue Authority for employees who are non-citizens and non-tax residents.

The National Pension Fund was repealed and replaced by the CSG (effective 1 September 2020). Read TaxNewsFlash

KPMG observation

With the amendments, employers need to:

  • Consider how to identify employees who may be affected by the changes (there may be refund opportunities)
  • Review their CSG calculations to determine the correct amount of CSG contributions
  • Monitor the tax status of their non-citizens employees because they could become subject to CSG only when they become tax residents

Read an April 2021 report [PDF 110 KB] prepared by the KPMG member firm in Mauritius

 

 

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