Tax & Regulatory Alert

COVID-19: Economic, tax, and other fiscal

stimulus measures in Mauritius
Private and confidential
May 2020
Contents

Foreword 3

Financial stimulus measures in response to

4
COVID-19

Measures by Bank of Mauritius 7

Tax measures 9

Administrative measures 10

Mobility considerations 12

Social intervention 13

Contacts 14
Foreword

The World Health Organization (WHO) declared the new coronavirus 2019
(COVID-19) as a pandemic on 11 March 2020, and the unprecedented nature of
COVID-19 has compelled the Mauritius Government to actively implement
numerous measures and address the impact of COVID-19 on its constituents. The
COVID-19 pandemic has been affecting major economic and financial markets, and
virtually all industries are facing challenges associated with the economic
conditions resulting from the prolonged pandemic. As COVID-19 increases in both
magnitude and duration, entities are experiencing conditions often associated
with a general economic downturn.

The depth and extent of measures are evolving rapidly, with new or enhanced
measures been released virtually during the past six weeks. On 1 May 2020, the
prime minister announced the extension of the lockdown until 1 June 2020 with
partial deconfinement for certain activities scheduled from 15 May 2020. A COVID-
19 bill is expected to be issued imminently to pave the way for easing the national
lockdown and accompany the staggered deconfinement.

This publication summarises the key supportive measures aimed at various

stakeholders of the island, announced or substantially enacted by our government
so far.

Deloitte Mauritius
Tax & Regulatory

© 2020 Deloitte Mauritius 3

COVID-19: Economic, Tax And Other Fiscal Stimulus Measures In Mauritius

Financial stimulus measures in

response to COVID-19
Several measures have been introduced by the government to support economic operators
across all sectors impacted by COVID-19.

MUR 9 billion COVID-19 MUR 5 billion targeted credit

financial support facility
An amount of MUR 9 billion has been A special relief amount of MUR 5 billion to be
earmarked in accordance with the Plan de provided to economic operators, including SMEs,
Soutien aux Entreprises to provide support at: in all sectors of activities to meet cash flow and
Macroeconomic and cross-sectoral levels working capital requirements.
• Financial support
Facilities will be made available through
• Labour commercial banks from 23 March 2020 to 31
• Small and Medium Enterprises (SME) sector July 2020, under the following conditions:
Sectoral levels
• Interest to be capped at 1.5 percent per
• Tourism annum
• Manufacturing and trade • Two-year repayment period
• Agro-industry
• Moratorium of six months on capital and
• Health sector interest repayments

Government Wage Assistance Scheme (GWAS)

Eligible employers to benefit from financial support for salaries for both Mauritians and
expatriates under GWAS as follows:
March 2020
For every employee with basic salary in Basis Assistance per employee (Rs)
March 2020
From MUR 9,700 to MUR 25,000 15-days wages From MUR 4,850 to MUR 12,500
From MUR 25,000 to MUR 50,000 Fixed amount MUR 12,500
Above MUR 50,000 NIL NIL

April 2020

For every employee with basic salary in Basis Assistance per employee (Rs)
April 2020
From MUR 9,700 to MUR 25,000 One month wages From MUR 9,700 to MUR 25,000
From MUR 25,000 to MUR 50,000 Fixed amount MUR 25,000
Above MUR 50,000 NIL NIL

May 2020
On 1 May 2020, the Minister of Finance, Economic Planning and Development, Dr Padayachy, announced
that the GWAS will be extended for the month of May 2020.
© 2020 Deloitte Mauritius 4
COVID-19: Economic, Tax And Other Fiscal Stimulus Measures In Mauritius

Financial stimulus measures in

response to COVID-19
Breakdown of stimulus measures

Investment Support Programme SIC Equity Participation Scheme

Limited (ISP)
Businesses may obtain additional fund
The ISP, a body under the aegis of the in the form of additional equity by
Ministry of Finance, Economic Planning and issuing preference shares to State
Development that supports businesses Investment Corporation.
through financial, leasing, and factoring
Available to enterprises with annual
schemes, has provided additional support in
the form of reduced interest rates and turnover exceeding MUR 250 million
guarantee as follows:

SME Factoring Scheme

Enterprises with annual turnover of up to
MUR 50 million will benefit from a reduced
interest rate of 2.5 percent instead of 3.9 SME Equity Fund Ltd
percent.
The SME Equity Fund Ltd will reduce its
minimum return dividend rate requirement
Leasing Equipment Modernisation Scheme
on equity/quasi-equity financing from 6
(LEMS I, II, III) percent to 3 percent up to 31 December
Enterprises with annual turnover ranging 2020.
between MUR 50 million and MUR 1.5 billion
will benefit from a reduced interest rate
Applicable to entities with annual turnover
starting as from 2.5 percent. of up to MUR 250 million

Corporate Guarantees to banks

ISP Ltd will issue corporate guarantee to banks
to enable them to grant loans to companies
affected by COVID-19, on a case-to-case basis.

© 2020 Deloitte Mauritius 5

COVID-19: Economic, Tax And Other Fiscal Stimulus Measures In Mauritius

Financial stimulus measures in

response to COVID-19
Breakdown of stimulus measures (cont’d)

Development Bank of Mauritius Ltd

DBM Ltd has introduced some measures for enterprises having annual turnover of up to MUR 10
million to help reduce liquidity and cash flow pressures.

Revolving Credit Fund Enterprise Modernisation Scheme

Interest free loan up to 31 December
2020 Enterprises having an annual turnover of up to
MUR 10 million to benefit from a reduced
A Revolving Credit Fund of MUR 200 million has been
interest rate 2.5 percent instead of 3.5 percent
established by DBM Ltd to ease cash flow/working
up to 31 December 2020 and a grant of 15
capital difficulties with the following features:
percent up to a maximum of MUR 150,000.
• Eligible to enterprises with annual turnover of up to
MUR 10 million
• Working capital facility of up to a maximum of MUR
1 million
• Maximum repayment period of 2 years
• Interest free up to 31 December 2020; interest rate
6 percent per annum, thereafter

© 2020 Deloitte Mauritius 6

COVID-19: Economic, Tax And Other Fiscal Stimulus Measures In Mauritius

Measures by Bank of Mauritius

The Bank of Mauritius (BOM) has introduced some measures that would
help cushion taxpayers as they try to adjust to the realities of COVID-19.

Special Foreign Easing of Reduction of Cash

Currency (USD) banking Reserve Ratio
Line of Credit guidelines Temporary reduction of Cash
Reserve Ratio (CRR) for
Special Foreign Currency (USD) The Guideline on Credit
commercial banks from 9
Line of Credit of USD 300 million Impairment Measurement and percent to 8 percent to allow
to operators, including SMEs, Income Recognition, that was banks to further assist
having foreign currency earnings. introduced in January 2020, has businesses directly impacted
The line of credit is available been put on hold to allow by COVID-19.
through commercial banks from
commercial banks to support Amount released through
24 March 2020 to 30 June 2020,
with repayment period of two enterprises facing cash flow and reduction in CRR to be held
years effective as from working capital difficulties in in a special account at the
disbursement date. Funds will be the context of COVID-19. BOM.
provided to commercial banks at
six-month USD Libor.

Swap Arrangement Issue of a 2020 Reduction in

USD/MUR savings bond Key Repo
Introduction of a USD/MUR Rate
Introduction of a 2.5 percent
swap arrangement, for an two-year savings bond for an Reduction of Key Repo Rate
initial amount of USD 100
amount of MUR 5 Billion as from to 1.85 percent per annum,
million, with commercial banks
to support import-oriented 23 March 2020. effective as from 16 April
businesses. Swap arrangement 2020.
Bonds will be issued at par in
to be effective from 24 March
2020 to 30 June 2020. multiples of MUR 25,000 up to a
maximum investment of MUR
1,000,000 per investor and will
only be available to resident
individuals and NGOs.

© 2020 Deloitte Mauritius 7

COVID-19: Economic, Tax And Other Fiscal Stimulus Measures In Mauritius

Measures by Bank of Mauritius

Moratorium on capital and interest repayment on existing loans

Category Moratorium

Economic operators (excluding SMEs) Six months on capital repayments starting 23 March
2020
SMEs Six months on both capital and interest repayments as
from 23 March 2020
Households with monthly basic salary not Six months on capital repayments as from 1 April 2020
exceeding MUR 50,000 and having a The Bank of Mauritius will pay interest on outstanding
household loan household loans for the period 1 April 2020 to 30 June
2020. This will not take into account any arrears on the
capital and interest accrued on household loan prior to
1 April 2020.
Households with monthly basic salary Six months on capital repayments as from 1 April 2020
exceeding MUR 50,000
Individuals with monthly basic salary not Six months on both capital and interest repayments as
exceeding MUR 50,000 from 1 April 2020

Notes:
• Household defined as husband and wife jointly or a single parent
• Household loans and loans granted to individual to include all existing rupee loans, which have been
disbursed by a commercial bank. Overdrafts, credit cards, and other credit facilities are not included

© 2020 Deloitte Mauritius 8

COVID-19: Economic, Tax And Other Fiscal Stimulus Measures In Mauritius

Tax measures

Mauritius Revenue Authority

The Mauritius Revenue Authority (MRA) announced
a series of measures to support taxpayers in view of
the COVID-19 outbreak.
Some of the key measures include the following:

No penalty or interest will be charged on late

submission of tax returns or late payment of tax,
which were initially due during the lockdown
period prevailing in Mauritius.

Companies affected by COVID-19 will be entitled

to double tax deduction for their investment
made in plant and machinery for the period 1
March 2020 to 30 June 2020.

Individuals and companies making

donation/contribution in COVID-19 Solidarity
Fund will be eligible to claim deduction for the
amount contributed at the time of filing their tax
returns for the income year concerned.
Any unrelieved deduction in an income year
may be carried forward for a period of two
income years.

The MRA has exceptionally extended the due

date for the transmission of FATCA information
to the MRA, regarding the filing obligations
under FATCA from 31 July to 30 September
2020.

© 2020 Deloitte Mauritius 9

COVID-19: Economic, Tax And Other Fiscal Stimulus Measures In Mauritius

Administrative measures

1. Registrar of Companies
Online facilities for online incorporation and online filing are being maintained during the
confinement period.
Documents submitted to the Registrar of Companies (ROC) prior to 19 March 2020 may not have
been processed and updated on the online CBRD-system. In such a case, companies are requested
to resubmit these documents by email to relevant ROC department.

Extension for filing due during confinement

A two-month extension from the lifting of the confinement for filing of Financial
Statements, which were initially due during the confinement period are being provided to
stakeholders.
For any other document other than Financial Statements initially due for filing during the
confinement period, a one-month extension from the lifting of the confinement is being
granted.

Issue of certificate by ROC

Only electronic certificates will be available during confinement. E-signed certificate
will be issued upon uplifting of confinement.
Certificate of current standing is being sent by email. Original certificate will be
provided after the confinement period.

Insolvency service
Insolvency practitioners and companies may send insolvency related document by email to ROC.
Original documents must be sent to ROC after the confinement period.

© 2020 Deloitte Mauritius 10

COVID-19: Economic, Tax And Other Fiscal Stimulus Measures In Mauritius

Administrative measures

2. Financial Services Commission

No administrative penalty will be charged on late filing and
reporting obligations for the following:
• Due by end March 2020 because of confinement, provided
that these obligations are filed on or before 30 June 2020; and
• Due in April, May and June 2020, provided these obligations
are met by due dates per table 1 and 2.

Table 1: Entities registered as reporting issuers

Accounts type Year/Period/Quarter ended Extended deadline

Annual reports/audited financial 31 January 2020/ 29 February 2020/ 31 July 2020

statements 31 March 2020
29 February 2020 15 May 2020
Quarterly financial statements
31 March 2020 15 June 2020

Table 2: Entities, other than reporting issuers, licensed and authorised by the FSC

Accounts type Year/Period/Quarter ended Extended deadline

31 October 2019/ 30 November

Annual reports/audited financial
2019/ 31 January 2020/ 29 30 June 2020
statements
February 2020
Interim financial statements 29 February 2020/ 31 March 2020 30 June 2020

3. Stock Exchange of Mauritius

The deadline for publication of financial statements for listed companies has been extended
as follows:

Accounts type Period ended Extended deadline

Yearly 31 December 2019 30 June 2020

Quarterly 31 March 2020 15 July 2020

© 2020 Deloitte Mauritius 11

COVID-19: Economic, Tax And Other Fiscal Stimulus Measures In Mauritius

Mobility considerations
The Prevention and Mitigation of Infectious Disease (Coronavirus) Regulations
2020 was issued to co-ordinate and implement a nationwide response to the
threat posed by the COVID-19 pandemic.

Lockdown Mandatory Border control

quarantine
The country has been in Effective 19 March 2020, and
lockdown from 19 March In accordance with the pursuant to the Quarantine
2020. Following a series of Prevention and Mitigation (Quarantinable Diseases)
extensions, the prime of Infectious Disease Regulations 2020, conveyance
minister announced on 1 (Coronavirus) Regulations may be prohibited from entering,
May 2020 that the lockdown 2020, any person infected transiting and exiting Mauritius
will be extended until 1 June or suspected of being by order of the minister on
2020. However, certain infected with COVID-19 account of public health.
activities may start from 15 shall be isolated or
May 2020. quarantined for further
screening assessments for a
The public was urged to be period of 14 days.
self-disciplined and
cooperate with the In the interest of public
authorities. They should not health, several areas across
go outdoors unless strictly Mauritius have been
Occupation/
necessary to avail urgent restricted and certain residence permit extension
medical treatment, essential designated quarantined
supplies, foodstuff, Following Cabinet decisions taken on
centres include resorts and
medicine, or any other item 13 March 2020, all work permits that
hotels.
essential for their would expire in the year 2020 would
subsistence or livelihood. be automatically extended up to 31
December 2021.

The Economic Development Board

(EDB) has also announced a
temporary extension of three
Travel restriction
months for occupation/residence
A ban on international travel is permit e-applicants whose
currently in force in Mauritius, business/tourist visas and current
except for sanctioned occupation/residence permits have
repatriation efforts. expired during the curfew order.

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 COVID-19: Economic, Tax And Other Fiscal Stimulus Measures In Mauritius

Social intervention

Solidarity fund
A COVID-19 Solidarity Fund had been set up to provide support to the population and the
community affected by the COVID-19 pandemic. On 2 May 2020, the Framework and Operating
Guidelines has been published and the online application portal is now operational. More details
on the guidelines can be accessed on the MRA website.
Donations made by both individuals and enterprises into the Solidarity Fund will be deductible for
tax purposes.

Financial support to self-employed

Introduction of a Self-Employed Assistance Scheme (SEAS), through the MRA, to assist self-
employed persons who have suffered loss of revenue as a consequence of the lockdown instated
by the government. Any individual in business or tradesperson operating in the informal sector,
who is a Mauritian national above the age of 18, and who have been in business for the past three
months, shall qualify for the scheme.
Financial support under the SEAS provided as follows during the lockdown period:

Period Financial support per applicant

16 March to 15 April MUR 5,100

16 April to 30 April MUR 2,550
May 2020 To be announced*

• The minister of finance announced that the SEAS will be extended for May 2020 further to extension of the curfew order until 1
June 2020.

Price control
The Consumer Protection (Price and Supplies Control) Act 1998 and the Consumer Protection
(Consumer Goods) (Maximum Mark-Up) Regulations 1998 have been amended with effect from 20
March 2020 to regulate price of specified essential food items and sanitary products.
VAT rate on protective masks, other breathing appliances and hand sanitisers has been reduced
from 15 percent to 0 percent, effective from 24 March 2020.

© 2020 Deloitte Mauritius 13

Contacts
If you would like to discuss the impact of these changes on your business and how you
can leverage the opportunities that they offer, please reach out to us:

Roopesh Dabeesingh Twaleb Butonkee

Partner Partner
Tax & Regulatory Financial Services & Regulatory
Email: Email:
[email protected] [email protected]

Kavi Udhin Prabha Narrainen

Senior Manager Manager
Tax & Regulatory Tax & Regulatory
Email: Email:
[email protected] [email protected]

Yudish Dabeesingh Samynaden Armoogum

Manager Manager
Tax & Regulatory Tax & Regulatory
Email: Email:
[email protected] [email protected]

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