Self-Employed Tax Guide Mauritius: Everything You Need to Know in 2025

Being self-employed in Mauritius offers freedom and flexibility, but it also means managing your own taxes. This comprehensive guide explains everything self-employed individuals, freelancers, and sole traders need to know about tax obligations in 2025.

Who is Considered Self-Employed?

You're self-employed if you:

✅ Run your own business with an Individual BRN
✅ Work as a freelancer or consultant
✅ Provide professional services (accountant, lawyer, doctor, etc.)
✅ Operate a sole proprietorship
✅ Are a partner in a partnership
✅ Earn income from trade, profession, or vocation
✅ Have control over how, when, and where you work

Not self-employed: Salaried employees, company directors earning only director's fees (different tax treatment)

Self-Employment Tax Rates 2025

Progressive Tax Rates

Unlike companies (flat 15%), self-employed individuals pay progressive tax rates:

Annual Income (Chargeable Income)	Tax Rate	Tax Calculation
Rs 0 - Rs 390,000	0% (Exempt)	No tax
Rs 390,001 - Rs 750,000	10% on excess over Rs 390,000	(Income - Rs 390,000) × 10%
Above Rs 750,000	15% on excess over Rs 750,000	Rs 36,000 + (Income - Rs 750,000) × 15%

Tax Calculation Examples

Example 1: Freelance Graphic Designer

Annual income (after expenses): Rs 300,000
Tax calculation: Rs 0 (below Rs 390,000 threshold)
Tax owed: Rs 0
Effective rate: 0%

Example 2: Consultant

Annual income (after expenses): Rs 600,000
Tax calculation: (Rs 600,000 - Rs 390,000) × 10% = Rs 21,000
Tax owed: Rs 21,000
Effective rate: 3.5%

Example 3: Successful Freelancer

Annual income (after expenses): Rs 1,200,000
Tax calculation: Rs 36,000 + (Rs 1,200,000 - Rs 750,000) × 15%
Rs 36,000 + (Rs 450,000 × 15%)
Rs 36,000 + Rs 67,500
Tax owed: Rs 103,500
Effective rate: 8.6%

Example 4: High-Earning Professional

Annual income (after expenses): Rs 2,500,000
Tax calculation: Rs 36,000 + (Rs 2,500,000 - Rs 750,000) × 15%
Rs 36,000 + (Rs 1,750,000 × 15%)
Rs 36,000 + Rs 262,500
Tax owed: Rs 298,500
Effective rate: 11.9%

What Income Must You Report?

All Business Income

You must report all income from your self-employment:

✅ Include:

Fees for services provided
Sales of products
Commission income
Consulting fees
Freelance project payments
Professional fees
Rental income from business property
Interest on business bank accounts
Any other business-related income

❌ Exclude (reported differently):

Salary from employment (employer handles PAYE)
Pension income
Investment dividends (separate treatment)
Rental income from personal property (unless part of business)

Income Recognition

Cash basis (allowed for small businesses):

Report income when actually received
Report expenses when actually paid
Simpler for most self-employed

Accrual basis (required if turnover > Rs 10M):

Report income when invoice issued (even if not paid)
Report expenses when incurred (even if not paid)
More complex but more accurate

Allowable Business Deductions

What You Can Deduct

Only expenses wholly and exclusively for business purposes are deductible.

1. Office and Workspace

Office rent (if renting commercial space)
Portion of home expenses (if working from home - see below)
Utilities proportionate to business use
Internet and phone (business portion)
Office supplies and stationery

2. Equipment and Assets

Computers and laptops
Software and subscriptions
Tools and equipment
Furniture (depreciation claimed over time)
Vehicles (business portion only)

3. Professional Services

Accounting and bookkeeping fees
Legal fees for business matters
Professional membership fees (ICPA, Bar Association, etc.)
Consulting and advisory fees

4. Marketing and Business Development

Website hosting and domain
Advertising costs
Business cards and promotional materials
Networking event fees
Social media advertising

5. Travel and Transportation

Business travel (flights, hotels, meals)
Vehicle expenses (fuel, maintenance - business km only)
Taxi/Uber for business trips
Parking fees for business visits

6. Training and Development

Professional courses and certifications
Workshops and conferences
Books and educational materials related to business

7. Insurance

Professional indemnity insurance
Public liability insurance
Business equipment insurance
Health insurance (portion allocated to business)

8. Bank and Finance Charges

Bank fees on business account
Interest on business loans
Credit card fees (business expenses)
Payment processing fees (MyT Money, PayPal, etc.)

9. Subcontractors and Outsourcing

Freelancers you hire
Virtual assistants
Designers, developers, writers

10. Other Business Expenses

Bad debts written off
Donations to approved charities
Staff salaries (if you employ people)
Rent of equipment

Home Office Deduction

If you work from home, you can deduct a proportionate amount of home expenses.

Calculation method:

Dedicated office room: (Office square meters ÷ Total home square meters) × Total home expenses
Shared space: Reduce percentage to reflect actual business use

Example:

Home size: 150 square meters
Office room: 15 square meters
Business use percentage: 15 ÷ 150 = 10%
Annual home expenses:
- Rent: Rs 180,000
- Utilities (electricity, water): Rs 36,000
- Internet: Rs 12,000
- Total: Rs 228,000
Deductible amount: Rs 228,000 × 10% = Rs 22,800

Important: Keep records proving dedicated business use (photos, floor plan, utility bills).

Vehicle Expenses

Two methods:

Method 1: Actual Expenses (Proportion)

Track all vehicle costs (fuel, maintenance, insurance, depreciation)
Multiply by business use percentage
Requires logbook of business vs personal kilometers

Example:

Total vehicle costs: Rs 120,000/year
Total kilometers: 20,000 km
Business kilometers: 8,000 km (from logbook)
Business use: 40%
Deductible: Rs 120,000 × 40% = Rs 48,000

Method 2: Simplified (if MRA allows)

Flat rate per business kilometer
Currently no official simplified rate in Mauritius
Must use actual expense method

Logbook requirement:

Date of travel
Starting and ending odometer readings
Destination and purpose
Kilometers traveled

What You CANNOT Deduct

❌ Not deductible:

Personal living expenses
Clothing (unless uniform/protective wear specific to business)
Personal meals (only business meals while traveling)
Entertainment expenses (unless directly income-generating)
Fines and penalties
Personal insurance
Personal vehicle costs (non-business portion)
Capital expenditure (building purchase - depreciate instead)
Donations to non-approved charities
Illegal payments

Registration Requirements

Individual Tax Number (TAN)

What it is: Unique tax identification number

Who needs it: All self-employed individuals

How to get it:

Visit MRA website: www.mra.mu
Register for e-Services
Complete TAN application
Provide national ID and BRN
Receive TAN within 3-5 working days

No cost: Free registration

VAT Registration

Mandatory if:

Annual turnover exceeds Rs 6 million
Expected to exceed Rs 6 million in next 12 months

Voluntary if:

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

If VAT-registered:

Charge 15% VAT on services/products
File monthly, quarterly, or annual VAT returns
Claim back VAT on business purchases

Filing Deadlines

Income Tax Return

Deadline: March 31 of the following year

Tax year: Calendar year (January 1 - December 31)

Example:

Income earned in 2024 (Jan 1 - Dec 31)
Tax return due: March 31, 2025

Late filing penalty:

Rs 1,000 for first month
Rs 200 per week thereafter
Maximum Rs 10,000

Tax Payment

Balance of tax: Due March 31 with tax return filing

If you owe more than Rs 10,000:
Consider making quarterly estimated payments (voluntary but reduces year-end burden)

How to File Your Tax Return

Step 1: Gather Records (January - February)

Income records:

All invoices issued
Bank statements showing payments received
Cash receipts
Any other income proof

Expense records:

All receipts for business expenses
Bank statements showing payments made
Credit card statements (business expenses)
Vehicle logbook
Home office calculation

Organize by category:

Create folders (physical or digital)
Separate by expense type
Total each category

Step 2: Calculate Income and Expenses (February)

Income calculation:

Total all business income received
Separate different income types if applicable

Expense calculation:

Total each expense category
Ensure all are legitimate business expenses
Have proof for all claims

Net profit:

Total income - Total expenses = Net profit (chargeable income)

Step 3: Complete Tax Return Online (March 1-25)

MRA e-Services:

Log into eservices.mra.mu
Select "Income Tax" → "Submit Return"
Choose "Individual Return (Self-Employed)"
Enter your income (Form I)
Enter allowable deductions
System calculates tax owed
Review and submit

Documents to upload:

Supporting schedules (income and expense summary)
Major receipts (optional but recommended for large claims)

Submission confirmation:

Save confirmation number
Print/download submitted return
Keep for 7 years

Step 4: Pay Tax (By March 31)

If tax is owed:

Payment methods:

Online via e-Services (instant)
- Credit card, MCB Juice, MyT Money
Bank transfer
- Transfer to MRA bank account
- Include TAN as reference
At MRA office
- Cash or check payment
- Ehram Court, Port Louis

Payment reference: Your TAN

Receipt: Keep payment proof for records

Step 5: Assessment (April - June)

MRA reviews your return:

May accept as filed
May request additional information
May conduct audit (rare for small amounts)

If additional info requested:

Respond within deadline given
Provide requested documents
Explain any discrepancies

Assessment notice:

Confirms tax liability
Shows any refund due or additional payment needed

Quarterly Estimated Payments (Optional)

Why Pay Quarterly?

Benefits:

Spread tax burden over the year
Avoid large year-end payment
Better cash flow management
Avoid interest on underpayment

Not mandatory for individuals (unlike companies with APS), but smart strategy if you earn significant income.

How to Calculate Quarterly Payments

Method: Estimate annual income, calculate approximate tax, divide by 4

Example:

Estimated annual profit: Rs 800,000
Estimated tax: Rs 36,000 + (Rs 800,000 - Rs 750,000) × 15% = Rs 43,500
Quarterly payment: Rs 43,500 ÷ 4 = Rs 10,875

When to pay:

Q1: End of March (for Jan-Mar income)
Q2: End of June (for Apr-Jun income)
Q3: End of September (for Jul-Sep income)
Q4: End of December (for Oct-Dec income)

How to pay:

Online via MRA e-Services
Mark as "Estimated Payment"

Year-end reconciliation:

File annual return in March
If overpaid: Claim refund or carry forward
If underpaid: Pay balance by March 31

Record Keeping Requirements

What to Keep

Minimum 7 years:

Income records:

Invoices (copies of all issued)
Bank statements
Receipt books
Payment confirmations
Cash register tapes

Expense records:

All receipts and invoices
Bank and credit card statements
Vehicle logbook
Home office calculations
Lease/rental agreements
Asset purchase receipts

Tax records:

Filed tax returns
Payment receipts
Assessment notices
Correspondence with MRA

Digital vs Physical Records

Both acceptable: MRA accepts digital records if:

Properly organized and backed up
Readable and accessible
Can be produced upon request
Metadata preserved

Best practice:

Scan physical receipts
Store in cloud (Google Drive, Dropbox)
Organize by year and category
Keep physical copies of major expenses (> Rs 10,000)

Accounting software:

QuickBooks, Xero, Zoho Books, Wave
Automatic categorization
Digital receipt attachment
Tax report generation

Tax Planning Strategies

1. Maximize Legitimate Deductions

Don't leave money on the table:

Track ALL business expenses
Don't skip small expenses (Rs 50 parking, Rs 200 office supplies add up)
Claim home office if applicable
Deduct professional development

Keep excellent records:

Receipt for every business expense
Note business purpose on receipt
Photograph/scan immediately

2. Timing Income and Expenses

If using cash basis:

End of year strategies (November-December):

To reduce current year tax:

Delay invoicing until January (income in next year)
Accelerate expenses into December (pay early)
Purchase equipment before Dec 31

To increase current year income (if expecting higher rate next year):

Invoice and collect in December
Delay expenses to January

Example:

You expect 2025 income will exceed Rs 750,000 (15% rate)
Your 2024 income is Rs 600,000 (10% rate)
Strategy: Maximize 2024 income (taxed at 10%) by invoicing before Dec 31

3. Register for VAT (If Beneficial)

Advantages:

Claim back VAT on business purchases
Appear more professional
Save money if most expenses have VAT

Example:

Annual revenue: Rs 5 million
VAT charged to clients: Rs 5M × 15% = Rs 750,000 (collected, passed to MRA)
Business expenses: Rs 2 million
VAT on expenses: Rs 2M × 15% = Rs 300,000 (claimable)
Net VAT to pay: Rs 450,000
But: You've claimed Rs 300,000 you paid on expenses

Disadvantages:

Monthly/quarterly filing burden
Complexity
May need to charge VAT to individual consumers (price increase)

4. Separate Business and Personal

Critical for tax compliance:

Separate bank account for business
Business credit card
Clear distinction in records

Makes tax filing easier:

Business bank statement = all business transactions
Clear expense trail
Less risk of missing deductions or including personal

5. Consider Incorporation

If income consistently exceeds Rs 750,000:

Compare:

Self-employed at Rs 1,000,000: Tax = Rs 73,500 (7.4%)
Company at Rs 1,000,000: Tax = Rs 150,000 (15%)

Self-employed is better for pure tax

But company offers:

Limited liability protection
Easier to raise investment
Tax planning with salary + dividends
Reinvest profits at 15% vs taking income at 10-15%

Consult accountant if income >Rs 1M to analyze best structure

Common Mistakes to Avoid

1. Not Tracking Small Expenses

Mistake: Only keeping receipts for large expenses

Impact: Miss Rs 20,000 - Rs 50,000 in deductions annually

Solution:

Receipt for everything (even Rs 50)
Use expense tracking app
Photograph receipts immediately

2. Mixing Business and Personal

Mistake: Using personal account for business, personal card for business expenses

Impact:

Missed deductions
Difficulty proving business expenses
MRA may disallow claims

Solution:

Dedicated business bank account
Business credit card
Clear separation

3. Not Paying Quarterly

Mistake: Saving all tax payment for March 31

Impact:

Cash flow shock in March
Temptation to spend money that should go to tax
Possible inability to pay

Solution:

Set aside 10-15% of income monthly
Make quarterly estimated payments
Separate savings account for tax

4. Claiming Personal Expenses

Mistake: Deducting personal meals, clothing, entertainment

Impact:

MRA audit
Disallowance of claims
Penalties and interest
Potential prosecution for fraud

Solution:

Only claim legitimate business expenses
When in doubt, don't claim
Ask accountant if unsure

5. Missing Deadline

Mistake: Filing after March 31

Impact:

Rs 1,000 immediate penalty
Rs 200 per week additional
Interest on unpaid tax

Solution:

Calendar reminder for March 15 (2 weeks early)
Prepare in February
File by March 20 (buffer for issues)

6. Not Keeping Receipts

Mistake: Claiming expenses without proof

Impact:

MRA audit disallows unproven expenses
Additional tax + penalties + interest

Solution:

Receipt for every expense
Digital backup (photo/scan)
Store for 7 years

7. Incorrectly Calculating Home Office

Mistake: Claiming 50% of home for 1 small office

Impact:

MRA disallows excessive claim
Audit triggers

Solution:

Accurate measurement (square meters)
Reasonable percentage
Documentation (photos, floor plan)

When to Hire an Accountant

DIY vs Professional Help

You can manage yourself if:

Simple business (one income stream)
Annual income < Rs 500,000
Comfortable with numbers
Time to organize records

Hire an accountant if:

Income > Rs 500,000
Multiple income streams
Complex expenses
VAT-registered
Don't have time/interest in tax
Want to minimize tax legally

Accountant Services and Costs

Bookkeeping (monthly):

Cost: Rs 2,000 - Rs 5,000/month
Service: Categorize transactions, reconcile accounts, prepare financials

Tax return preparation (annual):

Cost: Rs 3,000 - Rs 10,000
Service: Prepare and file tax return, maximize deductions, handle MRA queries

Full-service (monthly + annual):

Cost: Rs 30,000 - Rs 80,000/year
Service: Everything above + tax planning, advice, compliance

ROI: Good accountant typically saves you more in tax than their fee

Self-Employed Tax Checklist

January - February

Gather all income records
Collect all expense receipts
Organize by category
Total income and expenses
Calculate home office deduction
Calculate vehicle expenses (review logbook)

March 1-15

Complete tax return
Review for accuracy
Upload to MRA e-Services
Submit return

March 16-31

Pay any tax owed
Save payment confirmation
Download submitted return copy
File for records

Throughout the Year

Keep all receipts
Separate business and personal
Track kilometers (if claiming vehicle)
Set aside 10-15% for tax monthly
Make quarterly payments (optional)
Update records monthly

Resources

Mauritius Revenue Authority (MRA)

Website: www.mra.mu
e-Services: eservices.mra.mu
Phone: 207-6000
Email: tecd@mra.mu
Office: Ehram Court, Port Louis

Download Forms:

Individual Income Tax Return (Form I)
Tax guides and FAQs
Available at www.mra.mu

Free Tax Workshops:

MRA conducts free workshops for taxpayers
Check website for schedule

Conclusion

Self-employed tax in Mauritius is manageable with good organization and planning. Key takeaways:

Tax rates are progressive - 0% up to Rs 390,000, then 10%, then 15%
Track all expenses - Every legitimate deduction reduces tax
File by March 31 - Late penalties add up quickly
Keep records for 7 years - Essential for MRA compliance
Consider quarterly payments - Easier than one large year-end payment
Get help if needed - Accountant cost is tax-deductible and worth it

Most important: Being self-employed means YOU are responsible for tax. MRA won't remind you. Set calendar reminders and stay organized.

Need help with self-employed tax filing or want to minimize your tax liability legally? Connect with experienced tax accountants through our directory.