Deferment of tax payment and returns under the advanced payment system ("APS")

As warned by the OECD back in June, the impact of COVID19 on our global economy and our living standards will be long-lasting. In particular, whilst the lockdown measures implemented by the government in Mauritius were successful in mitigating the spread of COVID-19, they undeniably, had a detrimental effect on the finances of most businesses. In addition, sectors that are reliant on international trade and movement such as the tourism industry continue to be heavily impacted by travel restrictions.

The government recognised that companies are operating under unprecedented conditions and many are struggling with their cash flow positions. Therefore, to assist such businesses, the Mauritius Revenue Authority (“MRA”) issued a communiqué on 6 November 2020 to allow companies to defer tax returns and tax payments due under the Advanced Payment System (“APS”) until May 2021.

** Companies with a 30 November 2020 year-end will not have to submit an APS return or make payment under APS for their third quarter but will instead file their annual corporate income tax return by the normal due date of 31 May 2021.

For example, A Ltd has a year end of 30 November 2020 and must submit APS returns. It will submit its Corporate Tax Return by end of May 2021.