On 7 April 2021, Mauritius published the Contribution Sociale Généralisée (CSG) Regulations 2021. It amends the CSG Regulations 2020. This amendment is retrospective. It is deemed to have come into effect as of 1 September 2020.
Here is a list of changes that the 2021 Regulations bring about:
1. The Definition of The Employer Was Broadened
In addition to the normal definition of employer, there are two additional paragraphs (aa) and (ab) that provides for additional persons that would fall under the term “employer.” These are as follows:
(aa) A person who is responsible for the payment of an allowance to a participant under the National Assembly Allowances Act
(ab) A person who is responsible for the payment of remuneration to a participant under the Local Government Act
2. The Definition of The Participant Was Broadened
Similarly, the definition of the participant was broadened to include a person:
(ba) who draws an allowance under the National Assembly Allowances Act
(bb) who is paid remuneration as Councillor under the Local Government Act
3. Exclusion of Non-Citizen Employees Who Are Not Tax Resident in Mauritius
A non-citizen employee who is not a tax resident in Mauritius is not required to contribute CSG.
Note: Under Section 73 of the Income Tax Act, an individual is tax resident in Mauritius when:
(i) has his domicile in Mauritius unless his permanent place of abode is outside Mauritius or
(ii) has been present in Mauritius in that income year, for a period of, or an aggregate period of, 183 days or more or
(iii) has been present in Mauritius in that income year and the 2 preceding income years, for an aggregate period of 270 days or more.
Therefore, employers need to identify participants who may be affected by this amendment and inform the company’s payroll department.
There may be refund options available to claim back the CSG paid for employees/participants who have already contributed CSG but now falls under this new exclusion.