The Finance (Miscellaneous Provisions) Bill 2023 has been released for consultation. This draft legislation incorporates the measures announced by the Honourable Minister of Finance in his Budget Speech on 2 June 2023.
The Finance (Miscellaneous Provisions) Bill 2023 (“the Bill”) has been released for consultation. This draft legislation incorporates the measures announced by the Honourable Minister of Finance in his Budget Speech on 2 June 2023. This Alert covers the key tax and regulatory measures contained in the Bill which are still subject to changes following parliamentary debates.
The Bill eliminates the incentive tax rate of 5% applicable to Banks with chargeable income over MUR 1.5 Billion. However, the amendment is not being made retrospectively from year of assessment 2022/23 as was provided in the annex to the budget speech. It is not clear whether banks will still be eligible for the 5% tax rate for year of assessment 2022/23, with respect to chargeable income above MUR 1.5 Billion.
An important measure impacting large employers relate to the mandatory childcare facilities. Such facilities will be made mandatory and need to be provided on the workplace or within a radius of 1 km from the workplace.
As mentioned in our budget highlights, the next one or two years will be crucial time for Mauritius to review its tax incentives and tax holidays such that they are still fit for purpose post Global Minimum Tax (Globes) rules.
KPMG Mauritius Finance-Bill 2023