Thinking of moving abroad and leaving behind your tax residency in Mauritius? This guide is tailored to help you navigate the process smoothly. Follow these steps to ensure you meet all legal requirements when ceasing your tax residency.
Step 1: Determine Your Residency Status
First, ascertain whether you qualify as a tax resident in Mauritius for the current year. According to the Income Tax Act, a person is considered a tax resident if they have been present in Mauritius for at least 183 days in an income year or have a combined presence of 270 days in the last three years.
Step 2: Notify the Mauritius Revenue Authority (MRA)
You must inform the MRA of your intention to cease your tax residency. This can be done by writing a formal letter indicating your departure date and providing any supporting documents such as a copy of your airline ticket or visa.
Step 3: Settle Outstanding Tax Liabilities
Ensure that all your tax obligations are settled before you leave. This includes paying any outstanding income tax, VAT, and other relevant taxes. Obtain a tax clearance certificate from the MRA to confirm that you have no pending liabilities.
Step 4: Close Your Local Bank Accounts
If you have any bank accounts in Mauritius, it is advisable to close them or inform your bank about your change in residency status. This step helps prevent any future tax implications related to interest earned on these accounts.
Step 5: Update Your Contact Information
Provide the MRA with your new address and contact details abroad. This ensures that you receive any future correspondence related to your tax matters in Mauritius.
Step 6: Review Your Investments and Assets
If you hold any investments or assets in Mauritius, consider the tax implications of holding these as a non-resident. You may need to seek advice on whether to retain or dispose of these assets.
Step 7: File Your Final Tax Return
Submit your final tax return to the MRA, covering the period up to the date you cease to be a tax resident. Ensure that all income earned up to that date is reported accurately.
Legal References
- Income Tax Act - Section 73
- Mauritius Revenue Authority Act
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