Overview of the Tax Payment Extension for Tourism Industry Companies in Mauritius
On 25 June 2020, the Mauritius Revenue Authority (MRA) issued an official notice addressing companies operating within the tourism sector. This communication highlights important provisions regarding the extension of deadlines for the payment of income tax and advance payments for the fiscal year ending between 1 September 2019 and 30 June 2020. The notice primarily aims to assist tourism-related businesses facing financial challenges due to the ongoing economic impact of the COVID-19 pandemic.
Scope and Eligibility
This notice applies specifically to companies engaged in tourism activities that:
- Have an accounting period ending on any date between 1 September 2019 and 30 June 2020.
- Are eligible for the Government Wage Assistance Scheme (GWAS) for June 2020.
Companies meeting these criteria are granted an extension for the settlement of their tax liabilities, providing relief during a period of economic uncertainty.
Details of the Extended Payment Deadlines
The MRA has introduced a flexible schedule for the payment of income tax, which is as follows:
- 50% of the total tax due shall be payable on or before 28 December 2020.
- The remaining 50% shall be payable on or before 28 June 2021.
This extension applies to the tax payable under the annual income tax return, allowing companies additional time to meet their obligations without incurring penalties or interest, provided they are eligible under the specified scheme.
Implications for Advance Payment System (APS) Tax Payments
In addition to income tax, companies that made advance payments under the Advance Payment System (APS) during the calendar year 2020 can also benefit from these extended deadlines. The same schedule applies, enabling businesses to manage their cash flows more effectively during this period.
How This Affects Tourism-Related Businesses
This measure is part of the broader government effort to support the tourism industry, which has been significantly impacted by the global health crisis. By postponing tax payments, the authorities aim to alleviate immediate financial pressures and enable companies to sustain operations and preserve employment.
Businesses are encouraged to plan accordingly, ensuring that their tax filings and payments are aligned with the new deadlines. It is also advisable for companies to consult with their tax advisors or contact the MRA helpdesk for further clarifications.
Contact and Further Information
For additional details or assistance regarding this extension, companies can reach the Mauritius Revenue Authority helpdesk at:
- Phone: +230 207 6000
- Email: [email protected]
It is important for affected companies to stay informed about any updates or additional measures announced by the MRA, especially in the context of ongoing economic adjustments.
Summary
This official notice underscores the Mauritius Revenue Authority's commitment to supporting the tourism industry during challenging times. By extending the deadlines for tax payments, the government provides vital liquidity relief, helping companies to navigate the economic repercussions of the pandemic while remaining compliant with fiscal obligations.