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Mauritius Cumulative Tax Method
The Mauritius PAYE system aims at ensuring that the cumulative amount of tax withheld under PAYE for each month in a year corresponds exactly to the amount of tax payable on total emoluments derived in that year.
The amount of tax to be withheld from the emoluments of each pay period is calculated on a cumulative basis by cumulating both the emoluments and total exemptions and reliefs pertaining to the current and previous pay periods of the income year concerned.
A new tax method has been introduced for the 2022/2023 Mauritian Tax Year. Customers will be migrated from either the ‘average tax method’ or ‘non cumulative tax method’ and put on to the new ‘cumulative tax method’. The Cumulative Tax Method will become the only tax method available in Mauritius from July 2022. Click below for the Mauritius Cumulative Tax Method User Guide.
Mauritius Cumulative Tax Method User Guide.
Customers should refer to the Cumulative Tax Method User Guide for guidance on how to migrate and configure Mauritian payrolls for the 2022/2023 tax year.
The User Guide provides detailed information on the following concepts:
- Calculating PAYE
- Calculating Solidarity Levy Tax
- Tax Statuses
- Statutory / Custom Field Exemptions
- Payroll Components
- Steps to migrate payrolls to the Cumulative Tax Method
- Tax & Solidarity Levy Calculation Examples
- The Mauritius Cumulative Tax Method changes have been implemented on the system.
- Customers can opt to stay on the ‘average tax method’ or the ‘ non cumulative’ tax method for the tax year ending 2021/2022.
- The ‘average tax method’ and ‘non cumulative’ tax method will not be applicable for the tax year starting 1 July 2022.
- All customers will be switched to the Cumulative Tax Method effective 1 July 2022.
- All customer payrolls have been recalculated.
- No other statutory changes have been announced.