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Taxation Allowable Deductions in Mauritius which deduction in connection with employment.In general, expenses are deductible if they are incurred exclusively in the production of gross income and they are not of a capital or private nature. Expenses are not deductible to the extent that they are incurred in the production of exempt income.

Allowable deductions comprise of:

  • Annual and investment allowances on fixed assets.
  • Additional investment allowance for manufacturing companies on capital expenditure incurred on the acquisition of states-of-art technology equipment.
  • Marketing and promotional expenses.
  • Losses incurred in the production of gross income.
  • Bad debts and irrecoverable sums.
  • Pre-operational expenses of tax incentive companies.
  • Donations to charitable institutions.
  • Contributions to superannuation fund and employees' share scheme.
  • Gains on profits derived from sale of units and securities.
  • Expenses incurred in setting up social infrastructure.
  • Contribution to the national ambulance services.
  • Interest on bonds issued by statutory bodies and debentures issued by companies cultivating sugar cane or manufacturing sugar.