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Accomodation & utilities borne by employer - Is it taxable?

conface

Hi expats,

Any expat here got taxed monthly for the accomodation/utilities paid by their employer?

Apparently, based on the goverment website, accomocation/utilities borne by the employer are considered as emoluments and therefore, taxable.

For example;

Monthly pay (say Rs60,000)
+ Monthly rental paid by employer (say Rs25,000)
+ Monthly utilities paid by employer (say Rs15,000)
= Chargeable income of Rs100,000.

Hence, monthly income tax payable is Rs15,000 (at 15% tax rate over chargeable income) & the net pay/take-home cash is only Rs45,000 (Rs60,000 - Rs15,000 tax)!


Not sure if this rule is strictly enforced here cause if it does, it is going to cut down the take-home cash..

It would be nice if only 15% is deducted, i.e. (Rs60,000 - 15% = Rs51,000).

Please share your experience here, thanks :)

See also

The tax system in MauritiusA Hammer Blow to Real Estate ConfidenceTaxes for expats in MauritiusForeign investment tax (or whatever it is called)Mauritius Taxation on US pension
Julien

yes, you have to pay taxes on these

conface

Thanks Julien! :)

AndrewM

don't forget your income exemption threshold (IET).
See:

So your total income of Rs100,000 per month = Rs 1.2m per year less IET of 255,000 = 945,000, so you'll pay 141,750 tax (11,812 per month)and takehome on the 60k will be Rs48,188 and not the 45,000 you mentioned.
Andrew

conface

Andrew, yes you are right.  I know about the IET, just purposely left it out in my example to simplify the question, thanks for explaining thou :)

thanks!

tarunhshah

Hi , all

one more question is Education cost bared by / paid by employye and reimbursed by employer is taxable in hand of employee ?

AndrewM

that's going to fall in the same category as accomodation/utilities etc paid by the employer and so will be a taxable benefit.

Nazon

Hello
income exemption threshold will be available only after you stayed in Mauritius for more than 180days.(I think so... need to check)