mauritius tax FREQUENTLY ASKED QUESTIONS
WHAT IS THE TAX IMPLICATIONS FOR RETIRED PERSONS?
This is something that will depend on various factors including what your chargeable income is for tax purposes and where you have tax residency. Furthermore, based on whether you are considering financial emigration from SA and / or have citizenship / residence in other countries there may be some other factors. We would also look at whether it makes more sense for you to consider making use of the DTAA. We recommend that you attempt to answer this question with the assistance of an appropriate expert in the context of the decisions taken as part of your wider move rather than on your own as there are numerous technical aspects that can come into play.
IS THERE A 9% PENSION TAX WITH NO BENEFITS WHEN LIVING IN MAURITIUS?
There is a reform of the pensions framework that has indeed been proposed and we are waiting to see the details of the workings of this. The benefits anticipated include a fairer distribution of pensions across the spectrum and to create a system that is more sustainable given the ageing population. It is worth highlighting that expats can also benefit from the national pension as a general rule. At this point it is not accurate to consider it a “pensions tax” strictly speaking but it is true that a chunk of this reform is expected to fall on the employer contributions.
WHAT are THE TAX IMPLICATIONS FOR RETIRED PERSONS?
IS THERE A 9% PENSION TAX WITH NO BENEFITS WHEN LIVING IN MAURITIUS?
This is something that will depend on various factors including what your chargeable income is for tax purposes and where you have tax residency. Furthermore, based on whether you are considering financial emigration from SA and / or have citizenship / residence in other countries there may be some other factors. We would also look at whether it makes more sense for you to consider making use of the DTAA. We recommend that you attempt to answer this question with the assistance of an appropriate expert in the context of the decisions taken as part of your wider move rather than on your own as there are numerous technical aspects that can come into play.
There is a reform of the pensions framework that has indeed been proposed and we are waiting to see the details of the workings of this. The benefits anticipated include a fairer distribution of pensions across the spectrum and to create a system that is more sustainable given the ageing population. It is worth highlighting that expats can also benefit from the national pension as a general rule. At this point it is not accurate to consider it a “pensions tax” strictly speaking but it is true that a chunk of this reform is expected to fall on the employer contributions.
ALSO DOES A PERSON WITH AN APPROVED RETIREMENT PERMIT PAY TAX IN MRU?
Once that person qualifies to be a tax resident, they will be expected to pay tax in Mauritius.
WOULD THE SOLIDARITY LEVY NOTES THAT IT IS APPLIED TO MAURITIUS CITIZENS ALSO APPLY FOR SOUTH AFRICANS ON INVESTOR PERMITS?
Broadly speaking this would be depending on your tax residency. A case to case variation can also apply based on the conditions of your permit. All residents (local or expat) are typically impacted on by the same tax framework.
DOES A PERSON WITH AN APPROVED RETIREMENT PERMIT PAY TAX IN Mauritius?
WOULD THE "SOLIDARITY LEVY NOTES" THAT are applicable TO MAURITIUS CITIZENS ALSO APPLY FOR SOUTH AFRICANS ON INVESTOR PERMITS?
Once that person qualifies to be a tax resident, they will be expected to pay tax in Mauritius.
Broadly speaking this would be depending on your tax residency. A case to case variation can also apply based on the conditions of your permit. All residents (local or expat) are typically impacted on by the same tax framework.