It’s time to fill your MRA EDF form for the Mauritius Revenue Authority and there are many of you who are going to do it for the first time. This is a concise guide to understand how the Employee Declaration Form is structured and fill it.
What is the MRA EDF Form?
Does the email above look any familiar? Have your respective employers been sending you such emails lately? Many of you would answer in the affirmative. So what’s an Employee Declaration Form (EDF)? A duly filled EDF by an employee, submitted to his employer enables the latter to deduct the right amount taxes (Pay As You Earn – PAYE) from the employee’s emoluments after taking into account the exemptions and reliefs that he has claimed.
The form is designed with 5 categories.
The first category deals with the Employee’s Identification. Basic details have to be filled in like Surname, Other Names, NID, and TAN. If you are still an exempt employee, you would not have a TAN (Tax Account Number).
In the second part, the Name of the Employer has to be filled in. If a person has more than one employer, he should submit an EDF to only one employer, and has to account for amounts earned from the others in his annual return. The other employer/s will deduct PAYE at a flat rate of 15%.
In the third section the employee will claim the exemptions and reliefs to which he is entitled. Only a resident in Mauritius can claim for IET to be deducted in the computation of his chargeable income.
- IET – Category A – no dependent: Rs. 270000
- IET – Category B – one dependent: Rs. 380000
- IET – Category C – two dependents: Rs. 440000
- IET – Category D – three dependents: Rs. 480000
- IET – Category E – retired person – no dependent: Rs. 320000
- IET – Category F – Retired person – One dependent: Rs. 430000
NOTE: If a person claims an IET in respect of Category B, Category C, Category D or Category F, the spouse of that person can claim an IET in respect of Category A or Category E only.
A person cannot claim IET in respect of
- Category B or Category F (one dependent), if the net income and exempt income of his dependent exceeds Rs. 110000.
- Category C (two dependents), if the net income and exempt income of the second dependent exceeds Rs. 60000.
- Category C (three dependents), if the net income and exempt income of the third dependent exceeds Rs. 40000.
Where a person has claimed an IET in respect of Category B, C, D or F and the dependent is a child following a non-sponsored full-time undergraduate course at a recognized tertiary educational institution, additional exemption is available to the person, in respect of that child: Rs. 80000 where the course is in Mauritius by a TEC recognized institution; and Rs. 125000 where the course is pursued abroad. Certain conditions apply though.
Interest relief on secured housing loan
Interest relief on secured housing loan is also available. The relief is available in the case it’s the person first house and the claim does not exceed Rs. 120, 000 in a year.
Relief for Medical and Health Insurance Premium
With the Finance Act 2013, we now have a new relief: Relief for Medical and Health Insurance Premium. A person may claim relief for premium payable in respect of a medical or health insurance policy contracted for himself or his dependents in respect of whom Income Exemption Threshold has been claimed, and is limited up to a maximum amount of premium payable. No relief should be claimed where the premium is payable by the employer or under a combined medical and life insurance scheme.
The fourth section is to specify the nature of your employment whether ongoing, first employment, or change in employment. This is because it impacts on the monthly amount of IET to be deducted against your net income.
Last, but not the least, the fifth section is to sign an affidavit as to the truthfulness and certainty of the details provided in the form.
The deadline to furnish the duly filled and signed EDF to your employer is 15th February 2013, and that to furnish your annual return, accompanied with your additional taxes payable (if any) to the Mauritius Revenue Authority is the 31st March, 2013.