The Mauritius Revenue Authority (MRA) has issued a reminder to taxpayers that they have only hours left to submit their income tax returns before the deadline of October 30. Failing to meet the deadline will result in financial penalties for both late filings and unpaid taxes. Taxpayers who miss the deadline will face immediate repercussions.
The MRA has outlined specific penalties for late filings and payment delays. Taxpayers submitting returns late will face a penalty of Rs 2,000 per month of delay. For individuals and small and medium-sized enterprises (SMEs) with a turnover not exceeding Rs 10 million, this penalty is capped at Rs 5,000. For all other taxpayers, the ceiling reaches Rs 20,000.
In addition to late filing penalties, payment delays will also incur separate financial consequences. An immediate penalty of 1% of the tax due applies to individuals and SMEs with a turnover under Rs 10 million, rising to 2.5% for other taxpayers. Furthermore, late interest of 0.25% per month or part thereof is levied on any outstanding balance until full settlement is achieved.
Despite the looming deadline, the MRA anticipates receiving approximately 300,000 tax returns for the 2026/27 financial year. This number represents a decrease from the 348,153 returns received the previous year. Officials attribute this projected drop to recent tax reforms, including the raising of the zero-rate tax threshold from Rs 390,000 to Rs 500,000.
The tax system has undergone significant changes, including a reduction in the number of tax brackets from 11 down to three. Applicable to income from July 1, 2025, a 0% tax rate applies to the first Rs 500,000 of taxable income, a 10% rate covers the next Rs 500,000, and any remaining balance is taxed at 20%. These reforms aim to simplify the tax system and provide relief to taxpayers.
Despite the expected decrease in tax returns, the MRA projects that tax revenues collected during the declaration period will rise by 10%. After collecting Rs 2.5 billion for the 2025/26 financial year, the MRA forecasts collections to reach Rs 2.7 billion for 2026/27. Taxpayers are urged to complete their filings before Friday's close to avoid strict penalties and added interest charges.
The MRA emphasizes the importance of meeting the deadline to avoid financial penalties. Taxpayers who have yet to submit their returns are encouraged to do so as soon as possible. The authority is expected to process a significant number of returns in the coming hours as the deadline draws to a close.
Key points
- The MRA warns of penalties for late filings and payment delays.
- Recent tax reforms have led to a projected decrease in tax returns.
- Tax revenues are expected to rise by 10% despite a decrease in tax returns.
