Mauritius Revenue Authority Announces Tax Payment Relief Measures

Understanding the Mauritius Revenue Authority's Notice on Tax Payment Deferment and Scheme Renewal (06.11.20)

On 6 November 2020, the Mauritius Revenue Authority (MRA) issued an official notice to inform taxpayers and employers of important measures aimed at alleviating cash flow pressures during a challenging economic period. These measures focus on the deferment of certain tax payments and the renewal of the Tax Arrears Settlement Scheme (TASS). This communication is essential for all individuals and corporate entities affected by the deadlines and obligations under the Income Tax Act, the VAT Act, and related legislation.

Context and Purpose of the Notice

The primary objective of this notice is to provide temporary relief concerning tax obligations due to the ongoing economic impact of the COVID-19 pandemic. Recognizing the potential liquidity constraints faced by businesses and individuals, the MRA has implemented measures to extend deadlines and offer opportunities to settle outstanding taxes with reduced penalties and interest. These initiatives are designed to support economic stability and ensure continued compliance without undue financial hardship.

Who Is Affected by These Measures?

The measures outlined in the notice target:

• Companies required to submit Advance Payment System (APS) statements and make corresponding tax payments for quarters ending in November 2020 through May 2021.
• Individual taxpayers subject to Current Payment System (CPS) obligations, with due dates falling in December 2020, March 2021, and June 2021.
• Taxpayers with outstanding tax arrears as of 31 October 2020, including assessments issued or returns filed on or before this date, who may benefit from the renewal of TASS and waiver provisions.

Key Measures and Their Details

Deferment of Tax Payments for Companies (APS)

Companies that are required to submit APS statements and pay taxes for the relevant quarters now have an extended deadline. The submission and payment deadline has been moved from the original due dates to 28 June 2021. Additionally, companies with an accounting period ending in November 2020 are exempt from submitting a third-quarter APS statement for August 2020. They are instead required to submit their annual income tax return by 31 May 2021.

Relief for Individual Taxpayers (CPS)

Individual taxpayers are not obliged to submit CPS statements for the quarters ending in December 2020, March 2021, and June 2021. The tax due for these periods will be payable upon the submission of the annual income tax return, scheduled for September or October 2021. This postponement provides taxpayers with additional time to fulfill their obligations without penalties for late submissions.

Renewal of the Tax Arrears Settlement Scheme (TASS)

The TASS offers an opportunity for taxpayers with outstanding tax arrears as of 31 October 2020 to settle their dues with significant benefits. Specifically:

• If the arrears, including assessments or returns submitted on or before 31 October 2020, are fully paid by 31 December 2021, all penalties and interest included in the arrears will be completely waived.
• Taxpayers wishing to benefit must submit an application to the MRA by 30 June 2021.
• Taxpayers involved in ongoing assessments before judicial bodies, such as the Assessment Review Committee, the Supreme Court, or the Judicial Committee of the Privy Council, may participate by withdrawing their cases prior to settlement.
• For arrears related to the Training Levy or surcharges under the Human Resource Development Act, an 80% reduction in surcharges is available if the application is made before 30 June 2021, with full payment of the arrears and surcharges due by 31 March 2022.

Additional Information and Assistance

Taxpayers seeking further guidance or wishing to initiate their applications can consult the official MRA website at www.mra.mu. For direct assistance, the MRA helpdesk can be contacted during office hours at +230 207 6000. The authority encourages digital engagement and offers online services through the govmu.org portal, facilitating easier access to tax-related procedures and applications.

Legal and Administrative References

This communication aligns with the legal framework established by the Mauritius Revenue Authority Act 1955 and relevant tax legislation, supported by the government’s ongoing efforts to promote e-governance and taxpayer compliance. The measures are temporary and subject to future updates, reflecting the government's responsiveness to economic conditions and public health considerations.

In summary, this notice from the Mauritius Revenue Authority highlights significant opportunities for taxpayers to manage their tax obligations more flexibly during a difficult period. By adhering to the new deadlines and applying for the TASS waivers, taxpayers can mitigate penalties and interest, thus supporting their financial stability while fulfilling their fiscal responsibilities.