First Year Business Tax Guide Mauritius: Complete Checklist 2025

Starting a business in Mauritius comes with tax obligations that can seem overwhelming. This comprehensive guide walks you through everything you need to know about taxes in your first year of business - from registration to your first tax return.

First Year Tax Timeline

Month 1: Registration

Week 1-2: Business Registration

Register for BRN (Individual or Corporate)
Obtain Business Registration Certificate
Apply for trade license (if required)

Week 3-4: Tax Registrations

Months 1-12: Ongoing Compliance

Monthly (15th):

NPS contributions (if you have employees)
PAYE on employee salaries
APS payment (companies with prior tax > Rs 30k)

Monthly/Quarterly (20th):

VAT return filing and payment

Quarterly (15th after quarter):

CSG contributions (if employer)
NSF contributions (if employer)

Month 12+: Year-End and Filing

For Companies (June 30 year-end):

Close financial year (June 30)
Prepare financial statements (July-Aug)
Arrange audit if required (July-Aug)
File corporate tax return (by Sep 30)

For Self-Employed (Dec 31 year-end):

Organize records (January-February)
Prepare tax return (March 1-20)
File individual tax return (by March 31)
Pay any tax owed (by March 31)

Step 1: Tax Registrations (First Month)

Tax Account Number (TAN)

What it is: Your unique tax identification number

Who needs it: All businesses (companies and individuals)

When: Within first month of starting business

How to register:

Visit MRA website: www.mra.mu
Create account: Click "e-Services" → "New User Registration"
Select user type:
- "Company" if you incorporated
- "Individual" if sole trader
Provide details:
- BRN number
- Personal/company information
- Email address
- Mobile number
Upload documents:
- National ID (individuals)
- Certificate of Incorporation + BRN (companies)
Submit application
Receive TAN: Usually within 3-5 working days

Cost: FREE

Important: You need TAN to file tax returns and make payments.

VAT Registration

Who must register:

Turnover exceeds Rs 6 million in 12 months
Expected to exceed Rs 6 million in next 12 months

Who can register voluntarily:

Turnover between Rs 2-6 million
Beneficial if most customers are VAT-registered

When to register:

Within 21 days of crossing Rs 6M threshold
Before starting operations if expecting to exceed threshold

How to register:

Log into MRA e-Services
Select "VAT Registration"
Complete application:
- Business details
- Expected turnover
- Main business activity
Upload documents:
- BRN certificate
- Proof of business address
- Bank account details
Submit application
Receive VAT number: 5-10 working days

Cost: FREE

Filing frequency assigned:

Monthly: If turnover > Rs 10 million
Quarterly: If turnover Rs 6-10 million
Annual: If voluntary registration below Rs 6M

Employer Registration

If you hire employees, register for:

1. PAYE (Pay As You Earn) - Income Tax on Salaries

When: Before first salary payment

How:

Log into MRA e-Services
Register as employer
Provide employee details
Start filing monthly PAYE

2. NPS (National Pension Scheme)

Rate:

Employer: 6% of employee gross salary
Employee: 3% of employee gross salary (deducted from salary)

Deadline: 15th of following month

3. CSG (Contribution Sociale Généralisée)

Rate: 0.25% on gross revenue (not on salary)

Frequency: Quarterly

Deadline: 15th after quarter end

4. NSF (National Savings Fund)

Rate: 1% employer + 1% employee (for salaries < Rs 50,000)

Frequency: Quarterly

Step 2: Set Up Accounting System

Choose Accounting Method

Cash Basis (Simpler)

Record income when received
Record expenses when paid
Allowed for businesses under Rs 10M turnover
Recommended for first year if eligible

Accrual Basis (More Complex)

Record income when invoiced (even if not paid)
Record expenses when incurred (even if not paid)
Required if turnover > Rs 10M
More accurate but complex

Select Accounting Software

Free Options:

Wave Accounting - 100% free, good for micro-businesses
Excel/Sheets - Manual but works if tech-savvy

Paid Options:

Zoho Books - Rs 2,200/year (Rs 15/month), good for small businesses
Xero - Rs 5,500 - Rs 25,000/year, excellent for growing businesses
QuickBooks - Rs 10,800 - Rs 72,000/year, comprehensive features

Recommendation for first year:

Micro-business (solo): Wave (free)
Small business (1-5 employees): Zoho Books
Growing business (5+ employees): Xero

Set Up Chart of Accounts

Basic categories needed:

Income:

Sales/Service Revenue
Interest Income
Other Income

Expenses:

Cost of Goods Sold (if selling products)
Rent
Utilities
Salaries and Wages
Professional Fees (accounting, legal)
Marketing and Advertising
Office Supplies
Insurance
Bank Fees
Depreciation
Other Operating Expenses

Assets:

Cash
Bank Accounts
Accounts Receivable (money owed to you)
Equipment
Vehicles
Inventory

Liabilities:

Accounts Payable (money you owe)
Loans
VAT Payable

Equity:

Owner's Capital
Retained Earnings

Step 3: Understand Your Tax Obligations

For Self-Employed/Sole Traders

Income Tax:

Rate: Progressive (0%, 10%, 15%)
When: File by March 31 for previous calendar year
First filing: March 31, 2026 (for income earned Jan-Dec 2025)

What you pay tax on:

All business income minus allowable expenses

Example first year (started July 2025):

Income Jul-Dec 2025: Rs 200,000
Expenses: Rs 80,000
Taxable profit: Rs 120,000
Tax (below Rs 390k): Rs 0
File by: March 31, 2026

VAT (if registered):

File monthly/quarterly
Charge 15% VAT on services
Claim back VAT on business expenses
Pay difference to MRA

For Companies (Private Ltd)

Corporate Income Tax:

Rate: Flat 15% on profits
When: File by September 30 for June 30 year-end
First filing: September 30, 2026 (for July 2025 - June 2026)

Advance Payment System (APS):

First year: No APS required (no prior year tax)
Second year onwards: Monthly APS if prior year tax > Rs 30,000

Example first year (incorporated July 2025):

Financial year: July 1, 2025 - June 30, 2026
Prepare accounts: July-August 2026
File return: By September 30, 2026
Tax rate: 15% of profits

Annual Return (Companies Act):

File within 28 days of holding AGM
AGM must be within 6 months of year-end
June 30 year-end → AGM by Dec 31 → Annual Return by Jan 28

Step 4: Track Everything From Day 1

Record Keeping Essentials

What to keep (minimum 7 years):

Income Records:

All invoices issued to customers
Receipt books
Bank deposit records
Cash register tapes
Payment confirmations (bank transfers, check stubs)

Expense Records:

All receipts for business purchases
Invoices from suppliers
Bank statements
Credit card statements (business expenses)
Petty cash records
Vehicle logbook (if claiming vehicle expenses)

Tax Records:

Tax returns filed
Payment receipts
Assessment notices
Correspondence with MRA

How to organize:

Physical receipts:

Accordion folder with monthly dividers
Photograph/scan receipts immediately (fade protection)
Store in dry, safe place

Digital records:

Accounting software (auto-categorized)
Cloud storage (Google Drive, Dropbox)
Folder structure: Year → Month → Category
Regular backups

Best practice:

Enter expenses daily or weekly (not monthly)
Reconcile bank account monthly
Review profit & loss monthly
Keep business and personal completely separate

Separate Business and Personal

Critical for tax compliance:

1. Bank Account

Open dedicated business bank account
Use only for business transactions
Never mix personal expenses
Makes tax filing 10x easier

2. Credit Card

Apply for business credit card
Use only for business expenses
Clear documentation

3. Accounting

Never record personal expenses in business books
If you use business money personally, record as "owner's draw" (self-employed) or "director's loan" (company)

Why it matters:

Clean tax reporting
Easy expense tracking
MRA audit protection
Clear business picture

Step 5: Plan for Tax Payments

Estimate Your Tax Liability

Self-Employed Example:

Conservative scenario:

Expected annual income: Rs 600,000
Expected expenses: Rs 200,000
Expected profit: Rs 400,000
Tax calculation: (Rs 400,000 - Rs 390,000) × 10% = Rs 1,000
Estimated tax: Rs 1,000

Set aside: Rs 100/month or 1% of revenue (conservative)

Optimistic scenario:

Expected annual income: Rs 1,200,000
Expected expenses: Rs 300,000
Expected profit: Rs 900,000
Tax calculation: Rs 36,000 + (Rs 900,000 - Rs 750,000) × 15% = Rs 58,500
Estimated tax: Rs 58,500

Set aside: Rs 5,000/month or 10% of revenue

Company Example:

Expected profit: Rs 800,000

Corporate tax: Rs 800,000 × 15% = Rs 120,000
Estimated tax: Rs 120,000

Set aside: Rs 10,000/month or 15% of revenue

Create Tax Savings Plan

Strategy 1: Separate Savings Account

Open separate savings account for tax
Transfer estimated tax amount monthly
Don't touch this money (pretend it's not yours)
Use funds to pay tax when due

Example:

Set aside: Rs 5,000/month
After 12 months: Rs 60,000 saved
Pay tax from this pool

Strategy 2: Quarterly Deposits

Calculate tax quarterly
Set aside at end of each quarter
Adjust if income varies

Strategy 3: Percentage of Revenue

Self-employed: Set aside 10-15% of every payment received
Company: Set aside 15-20% of revenue
Automatic transfer when payment received

Step 6: Maximize Deductions (Legally)

Common First-Year Deductions

Startup Costs (Often forgotten):

Business registration fees
Legal and professional fees for incorporation
Initial marketing materials (business cards, website)
Equipment purchased before starting operations
Market research expenses

Ongoing Deductible Expenses:

Office rent
Home office portion (if working from home)
Internet and phone (business portion)
Computers, laptops, software
Professional fees (accounting, legal)
Marketing and advertising
Insurance (professional indemnity, public liability)
Bank fees
Training courses related to business
Professional memberships

Vehicle Expenses (if used for business):

Track all business kilometers
Claim proportionate share of:
- Fuel
- Maintenance
- Insurance
- Depreciation

Example:

Total vehicle costs: Rs 100,000/year
Business use: 40% (from logbook)
Deductible: Rs 40,000

What You CANNOT Deduct

❌ Personal living expenses
❌ Personal clothing (unless uniform)
❌ Entertainment (lunches, dinners unless directly revenue-generating)
❌ Fines and penalties
❌ Personal travel
❌ Personal portion of mixed-use expenses

Smart Tax Planning in Year 1

December strategies (if calendar year):

To reduce tax:

Accelerate expenses into December (pay early)
Delay invoicing until January (if using cash basis)
Purchase equipment before Dec 31 (claim depreciation)
Write off bad debts
Make charitable donations to approved organizations

To increase income (if staying below threshold):

Invoice and collect before Dec 31
Recognize all earned income
Delay expenses to January

Example:

Current profit: Rs 385,000
Strategy: Stay below Rs 390,000 threshold (0% tax)
Action: Delay Rs 10,000 revenue to January OR accelerate Rs 5,000+ expenses

Step 7: Prepare for First Tax Return

For Self-Employed (Calendar Year)

Timeline:

January: Gather all records
February: Total income and expenses, calculate profit
March 1-20: Complete and submit tax return
March 31: Deadline for filing and payment

What you need:

Income Summary
- Total from all sources
- Broken down by category if multiple income types
Expense Summary
- Totaled by category
- Receipts and records to support
Supporting Schedules
- Home office calculation
- Vehicle expense calculation
- Depreciation schedule (for assets)
Bank Statements
- Business account (full year)
- Shows all deposits (income) and payments (expenses)

How to file:

Log into MRA e-Services
Select "Income Tax" → "Individual Return"
Complete Form I (self-employed income section)
Enter income and deductions
System calculates tax
Upload supporting documents
Submit
Pay tax if owed

For Companies (June 30 Year-End)

Timeline:

June 30: Close financial year
July: Prepare financial statements
August: Arrange audit (if turnover > Rs 10M)
September 1-25: Complete tax return
September 30: Deadline for filing and payment

What you need:

Financial Statements
- Profit & Loss Statement
- Balance Sheet
- Cash Flow Statement
Tax Computation
- Accounting profit
- Adjustments (add back non-deductible expenses)
- Chargeable income
- Tax calculation
Audited Accounts (if applicable)
- Required if turnover > Rs 10 million
- Hire certified auditor
- Cost: Rs 15,000 - Rs 50,000
Supporting Schedules
- Fixed asset register
- Depreciation calculation
- Related party transactions

How to file:

Log into MRA e-Services
Select "Corporate Tax" → "Submit Return"
Complete CIT return
Upload financial statements
Upload audited accounts (if applicable)
Submit
Pay tax if owed

Step 8: Common First-Year Mistakes to Avoid

1. Not Registering for TAN

Mistake: Starting business without registering for tax

Consequence: Cannot file returns, penalties for late registration

Solution: Register for TAN in first month of operation

2. Mixing Business and Personal

Mistake: Using personal account for business or paying personal expenses from business

Consequence: Messy records, missed deductions, audit risk

Solution: Separate bank account and credit card from day 1

3. Not Tracking Expenses

Mistake: Throwing away receipts or not recording expenses

Consequence: Pay more tax (can't prove deductions)

Solution:

Receipt for every expense (photo immediately)
Enter in accounting software weekly
Keep organized records

4. Forgetting About Tax

Mistake: Spending all revenue without setting aside for tax

Consequence: Can't pay tax when due, penalties and interest

Solution: Set aside 10-15% of revenue monthly in separate account

5. Filing Late

Mistake: Missing March 31 (individuals) or September 30 (companies) deadline

Consequence:

Rs 1,000 penalty + Rs 200/week thereafter
Interest on unpaid tax (0.5% per month)
Stress and audit risk

Solution:

Calendar reminder for 2 weeks before deadline
Prepare early (February for individuals, August for companies)
File by March 15 or September 15 (buffer for issues)

6. Not Keeping Records Long Enough

Mistake: Throwing away records after filing

Consequence: Cannot defend against MRA audit

Solution: Keep all records for minimum 7 years

7. Claiming Non-Business Expenses

Mistake: Deducting personal meals, entertainment, personal vehicle use

Consequence: MRA audit, disallowance, penalties for tax evasion

Solution: Only claim legitimate, provable business expenses

8. Not Getting Professional Help

Mistake: Trying to handle complex tax situation alone

Consequence: Errors, missed opportunities, overpaying tax

Solution: Hire accountant if:

Income > Rs 500,000
VAT-registered
Employees
Don't have time/knowledge

Step 9: When to Hire an Accountant

DIY vs Professional

You can manage yourself if:

Very simple business (one income stream)
Income < Rs 300,000 in first year
No employees
Not VAT-registered
You're comfortable with numbers
You have time to learn

Hire an accountant if:

Income > Rs 500,000
Multiple income streams
Employees (PAYE, NPS, CSG complexity)
VAT-registered
Want to minimize tax legally
Don't have time or interest in tax
Peace of mind worth the cost

Accountant Services and Costs

Bookkeeping (monthly):

Service: Record transactions, reconcile accounts
Cost: Rs 2,000 - Rs 5,000/month
Worth it if: You hate bookkeeping or value your time

Tax Return Preparation:

Service: Prepare and file tax return
Cost: Rs 3,000 - Rs 10,000 annually
Worth it if: Want to ensure accuracy and maximize deductions

Full-Service:

Service: Bookkeeping + tax filing + advice
Cost: Rs 30,000 - Rs 80,000/year
Worth it if: Income > Rs 750,000 or you want hands-off approach

ROI: Good accountant typically saves you more than their fee through:

Tax minimization strategies
Maximized deductions
Avoiding penalties
Your time saved

First Year Tax Checklist

Before Starting Business

Decide on business structure (sole trader vs company)
Register business (BRN)
Apply for trade license if needed
Choose accounting software
Open business bank account
Get business credit card

Month 1

Register for TAN with MRA
Register for VAT (if applicable)
Register as employer (if hiring)
Set up accounting system
Create tax savings account
Organize record keeping system

Monthly

Record all income received
Record all expenses (keep receipts)
Reconcile bank account
Set aside 10-15% for tax
Pay NPS if you have employees (15th)
File VAT if registered (20th)

Quarterly

Review profit & loss
Adjust tax estimate if needed
Pay CSG and NSF if employer (15th after quarter)
Clean up any backlog in accounting

End of Financial Year

Self-Employed (December 31):

Review tax planning opportunities
Accelerate/delay income or expenses strategically
Write off bad debts
Purchase equipment if beneficial

Companies (June 30):

Close accounts
Prepare financial statements
Arrange audit if required
Prepare for tax return

Tax Filing Season

Self-Employed:

Gather all records (January)
Total income and expenses (February)
Prepare tax return (March 1-15)
File by March 31
Pay tax by March 31

Companies:

Finalize financial statements (July)
Complete audit (August, if required)
Prepare tax return (September 1-15)
File by September 30
Pay tax by September 30

Throughout the Year

Keep every business receipt
Separate business from personal
Update accounting weekly
Back up records regularly
Respond promptly to any MRA queries

Quick Reference: Key Deadlines

Obligation	Who	When	Penalty if Late
TAN Registration	All businesses	Within 1 month of start	Cannot file returns
VAT Filing	VAT-registered	20th monthly/quarterly	Rs 2,000 + Rs 200/day
NPS Payment	Employers	15th monthly	5% + 0.5% interest/month
Individual Tax Return	Self-employed	March 31	Rs 1,000 + Rs 200/week
Corporate Tax Return	Companies	September 30	Rs 1,000 + Rs 200/week
Annual Return	Companies	28 days after AGM	Rs 1,000+ escalating

Resources and Support

Mauritius Revenue Authority (MRA)

Website: www.mra.mu
e-Services: eservices.mra.mu
Phone: 207-6000
Email: tecd@mra.mu

Free Resources:

MRA Tax Guides (download from website)
Free tax workshops (check MRA events)
Online webinars and videos

Get Professional Help:

Find accountants through KickOff directory
Compare prices and services
Choose ICPA-certified professionals

Small Business Support:

SME Mauritius: www.smemauritius.mu
Advice and guidance for new businesses

Conclusion

Your first year of business tax in Mauritius doesn't have to be overwhelming. Success comes down to:

Register properly - TAN, VAT, employer registrations as needed
Organize from day 1 - Separate accounts, track everything
Save for tax - 10-15% of revenue monthly
Keep excellent records - Every receipt for 7 years
File on time - March 31 (individuals) or September 30 (companies)
Get help when needed - Accountant if income > Rs 500k

Most important: Don't ignore tax. The money you make is not all yours - the government is a silent partner. Treat tax as an important business expense, plan for it, and you'll have no surprises.

Expected first-year tax:

Income Rs 300,000: Likely Rs 0 tax (below threshold)
Income Rs 600,000: Rs 10,000 - Rs 20,000 tax
Income Rs 1,000,000: Rs 70,000 - Rs 150,000 tax (depending on structure)

Start organized, stay compliant, and focus on growing your business. Tax becomes routine after the first year!

Need hands-on help navigating your first year of business tax? Connect with experienced accountants through our directory for personalized guidance.