Presumptive Tax (1% of turnover)

Pay just 1% of gross income instead of normal corporate tax

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At a glance

Provider

Mauritius Revenue Authority

Type

Tax

What you get

Pay just 1% of gross income instead of normal corporate tax

Status

Reconfirm

If gross income is Rs 10M or less, an SME can elect to pay 1% of gross income instead of declaring chargeable income, and is exempt from CSR. Simplifies accounting for small businesses.

Presumptive Tax is a simplified way for small businesses to handle income tax. Instead of working out your chargeable income with full accounts, you elect to pay a flat 1% of your gross income. For many small operators this is both cheaper and far less work.

To use it, your gross income must be Rs 10M or less. If you qualify and elect in, you pay 1% of gross income and you are also exempt from CSR, which is an extra saving.

The big practical win is simplicity. You do not need to compute chargeable income in the usual way, so your accounting and filing become much lighter, which suits a small business without a full finance team.

To apply, you elect presumptive tax in your MRA income-tax return. It is a choice you make at filing time rather than a separate application.

Watch out for this

Watch out before electing: if your business has high costs and thin margins, 1% of gross income can sometimes work out higher than normal tax on your actual profit. Confirm the current rules with the MRA and run the numbers both ways first.