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.

Tax filing and financial planning

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

  • Register for Tax Account Number (TAN)
  • Register for VAT (if turnover > Rs 6M expected)
  • Register as employer (if hiring staff)

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:

  1. Visit MRA website: www.mra.mu
  2. Create account: Click "e-Services" → "New User Registration"
  3. Select user type:
  • "Company" if you incorporated
  • "Individual" if sole trader
  1. Provide details:
  • BRN number
  • Personal/company information
  • Email address
  • Mobile number
  1. Upload documents:
  • National ID (individuals)
  • Certificate of Incorporation + BRN (companies)
  1. Submit application
  2. 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:

  1. Log into MRA e-Services
  2. Select "VAT Registration"
  3. Complete application:
  • Business details
  • Expected turnover
  • Main business activity
  1. Upload documents:
  • BRN certificate
  • Proof of business address
  • Bank account details
  1. Submit application
  2. 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 2026)

What you pay tax on:

  • All business income minus allowable expenses

Example first year (started July 2026):

  • Income Jul-Dec 2026: 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 2026 - 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 2026):

  • Financial year: July 1, 2026 - 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

  1. Open separate savings account for tax
  2. Transfer estimated tax amount monthly
  3. Don't touch this money (pretend it's not yours)
  4. 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:

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

How to file:

  1. Log into MRA e-Services
  2. Select "Income Tax" → "Individual Return"
  3. Complete Form I (self-employed income section)
  4. Enter income and deductions
  5. System calculates tax
  6. Upload supporting documents
  7. Submit
  8. 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:

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

How to file:

  1. Log into MRA e-Services
  2. Select "Corporate Tax" → "Submit Return"
  3. Complete CIT return
  4. Upload financial statements
  5. Upload audited accounts (if applicable)
  6. Submit
  7. 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)

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:

Conclusion

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

  1. Register properly - TAN, VAT, employer registrations as needed
  2. Organize from day 1 - Separate accounts, track everything
  3. Save for tax - 10-15% of revenue monthly
  4. Keep excellent records - Every receipt for 7 years
  5. File on time - March 31 (individuals) or September 30 (companies)
  6. 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.