Fiscal Update: MRA Launches Income Tax Declaration Campaign

The Mauritius Revenue Authority (MRA) has officially commenced its income tax declaration campaign for the fiscal year 2023/24. Taxpayers are reminded that they have until October 15 to submit their income declarations and settle their tax obligations.

Starting from August 29, the MRA has facilitated the e-filing process, allowing taxpayers to conveniently declare their income and pay their taxes online via the MRA website.

“Although the deadline is set for October 15, we encourage taxpayers to avoid waiting until the last minute to declare their income and settle their taxes,” stated a senior MRA official.

To participate in the e-filing process, each taxpayer must utilize their Tax Account Number (TAN) along with their password.

The e-filing platform provides numerous advantages, including pre-filled income declarations and the ability to save a copy of the submitted declaration.

New Deductions

Electric Vehicle Charger Deduction:
Taxpayers can now deduct the amount they invest in a fast charger for electric vehicles from their net income during the fiscal year ending June 30, 2024.

Any non-relieved amount reported on line 26.5 of the tax declaration can be carried over and deducted from future years’ net income.

Additionally, individuals who incur expenses for a fast charger within the context of earning gross income can deduct double the amount spent from their gross income.

However, these individuals are not permitted to claim a deduction for the same charger under section 26 of the tax declaration.

Pet Adoption Relief:
Individuals who adopt pets from the Mauritius Society for Animal Welfare or registered NGOs can benefit from tax relief this fiscal year.

Taxpayers may deduct Rs 10,000 from their net income for each adopted animal, with a maximum deduction limit of Rs 30,000 per fiscal year.

Assistance Available

E-Appointment Service:
The MRA has introduced an e-appointment feature on its website, enabling taxpayers to book a time slot that works for them.

During the appointed time, they will receive assistance in completing their income declaration through a video call on WhatsApp.

MyRA Virtual Assistant:
The MRA has also launched MyRA, a virtual assistant available 24/7 on its website.

This tool is designed to guide taxpayers through the process of submitting their income declarations.

Penalties and Interest

The due date for electronic submission of declarations and tax payment is Tuesday, October 15, 2024.

Late Submission Penalties:
Taxpayers who fail to submit their declarations electronically will face a penalty of Rs 2,000 per month until the declaration is submitted, with a maximum penalty of Rs 20,000.

For small businesses with an annual turnover not exceeding Rs 10 million or for individuals not engaged in any economic activity, the maximum penalty is capped at Rs 5,000.

Late Payment Penalties:
A penalty of 5% of the unpaid tax amount will be applied for delayed payments.

In cases involving small businesses with annual turnover not exceeding Rs 10 million, or individuals not actively in business, the penalty rate will be 2%.

Interest on Late Payments:
For any late tax payments, interest at a rate of 0.5% per month or part of a month will be charged on the unpaid tax balance beyond the due date.

Source: Defi Media