Specific Taxes in Mauritius
Mauritius levies a range of specific taxes beyond corporate and personal income taxes. These taxes encompass a diverse spectrum of obligations imposed on individuals and businesses, each with its unique nature, scope, and rationale.
1. Value-Added Tax (VAT)
VAT is a consumption tax levied on the sale of goods and services. It is a comprehensive tax that applies to most business transactions, with a standard rate of 15%. Certain goods and services, such as basic foodstuffs and healthcare, are exempt from VAT.
2. Property Tax
Property tax is an annual levy imposed on immovable property owned by individuals or entities. The tax is based on the property's annual rental value, with rates varying depending on the property's location and type.
3. Environmental Taxes
Mauritius has implemented a series of environmental taxes to discourage harmful environmental practices and promote sustainability. These taxes include:
- Carbon Tax: A tax levied on the consumption of fossil fuels, such as petrol, diesel, and coal.
- Wastewater Discharge Levy: A tax imposed on businesses that discharge wastewater into the environment.
- Plastic Bag Levy: A tax on the use of plastic bags.
4. Stamp Duty
Stamp duty is a tax levied on various legal documents and transactions, including property transfers, share transfers, and certain contracts. The tax rate varies depending on the type of document or transaction.
5. Registration Duty
Registration duty is a tax levied on the registration of companies and other legal entities in Mauritius. The tax rate is based on the authorized share capital of the company.
6. Land Transfer Tax
Land transfer tax is a tax levied on the transfer of immovable property in Mauritius. The tax rate is based on the value of the property being transferred.
Taxpayers Subject to Specific Taxes
The categories of taxpayers subject to specific taxes in Mauritius include:
- VAT: Businesses engaged in the supply of goods and services, with certain exemptions for small businesses and non-profit organizations.
- Property Tax: Property owners, including individuals, companies, and trusts.
- Environmental Taxes: Companies and individuals engaged in activities with environmental impacts, such as manufacturing, waste disposal, and energy production.
- Stamp Duty: Parties involved in transactions subject to stamp duty, such as property buyers, shareholders, and parties to contracts.
- Registration Duty: Companies and other legal entities registering in Mauritius.
- Land Transfer Tax: Individuals and entities transferring immovable property in Mauritius.
Purpose and Rationale
The specific taxes levied in Mauritius serve various purposes, including:
- VAT: VAT is a major source of government revenue, contributing to the funding of public services and infrastructure development.
- Property Tax: Property tax generates revenue for local governments and helps regulate property ownership and discourage speculative investment.
- Environmental Taxes: Environmental taxes aim to internalize the costs of environmental damage and encourage sustainable practices. Revenue from these taxes may be used for environmental protection measures and conservation efforts.
- Stamp Duty: Stamp duty revenue contributes to government revenue and may be allocated to various public services and initiatives.
- Registration Duty: Registration duty helps cover the administrative costs of registering companies and other legal entities in Mauritius.
- Land Transfer Tax: Land transfer tax generates revenue for the government and helps regulate the real estate market.
Legal Framework
The legal framework governing specific taxes in Mauritius includes:
- Value-Added Tax Act (2010)
- Property Tax Act (2004)
- Environmental Protection Act (2002)
- Stamp Duty Act (1997)
- Registration Duty Act (1997)
- Land Transfer Tax Act (1997)
These statutes outline the obligations, rates, and procedures for the collection and enforcement of specific taxes in Mauritius.
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