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Taxation - Investment allowance from the total income of the individual in Mauritius.Capital allowances are based on expenditure actually incurred, i.e. after deducting any subsidies received or exchange gains on foreign loans to purchase plant and machinery exchange losses on foreign loans are added to the capital cost of the plant and machinery. Annual allowances are allowed on capital expenditure relating to acquisition of plant and machinery, construction or extension of industrial premises including hotels, agricultural improvement on agricultural land and scientific research.

A taxpayer incurring capital expenditure in relation to the construction of industrial premises, acquisition of new plant and machinery, or acquisition of computer software, is allowed an investment allowance of 25% of the capital expenditure in respect of the income year in which the expenditure incurred.