Mauritius: Worked Example of Tax on Rent

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Tax Example: Rent

Non-resident couple's joint monthly rental income1		US$1,500	US$6,000	US$12,000
Annual Rental Income		18,000	72,000	144,000
Less Cost2		(2,908)	(11,241)	(22,509)
Less Estate Agent Commission3		(750)	(3,000)	(6,000)
= Taxable Income		14,342	57,759	115,491
Income Tax Rates4
MUR500,000	15%	US$1,948	US$1,948	US$1,948
Over MUR500,000	22.5%	305	10,074	23,063
Annual Income Tax Due		US$2,253	US$12,022	US$25,011
Less Withholding Tax5	15%	US$2,700	US$10,800	US$21,600
Tax Payable (Refund)6		(447)	US$1,222	US$3,411
Tax Due as % of Gross Income		12%	16.7%	17.37%
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on October 4, 2006.

Notes

¹ The residential property is jointly owned by husband and wife.

² Estimated costs include maintenance, residential property and municipal taxes, and estate management fee.

³ Half of monthly rent. This is a one time fee for client introduction.

⁴ Exchange rate used is US$1=MUR38.5. Tax rates are applicable for 2006-2007 tax year.

⁵ Non-residents gross rental income is liable to withholding tax at a rate of 15%, withheld at source.

⁶ Amounts in brackets are the excess of tax withheld over the actual tax due, so the taxpayer is entitled to a tax refund.

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