On this page
What the advance payment system is
The advance payment system mauritius companies talk about is a mechanism run by the Mauritius Revenue Authority (MRA). Instead of waiting for the annual return to settle the whole income tax bill, a company subject to the scheme pays on account during its income year, in quarterly instalments, each accompanied by an APS return. The annual return then reconciles what was paid in advance with the tax actually due.
For a director, the practical point is cash flow. Tax is not a single event at the end of the year: it is a rhythm of quarterly filings and payments that has to be planned alongside payroll, supplier payments and dividends. The rules on who falls within APS, how each instalment is computed and when it falls due are set by the Income Tax Act and MRA guidance. Check the current text and your own situation with an adviser before relying on a general summary such as this one.
Which companies are concerned
Most companies that are chargeable to income tax in Mauritius and carry on a trade are expected to deal with APS. Others pay everything with the annual return. Whether your company is in or out depends on its facts, so confirm the position when you first register for tax and again whenever the business changes.
A few categories sit at the edges:
- Global business entities. The Income Tax Act defines a global business entity as including a company holding a Global Business Licence from the Financial Services Commission (FSC) and a company authorised under section 71A of the Financial Services Act (an Authorised Company). Their tax treatment differs from that of an ordinary domestic company, so do not assume the domestic routine applies.
- Tax-exempt entities. Bodies listed in Part I of the Second Schedule of the Income Tax Act are treated separately from trading companies.
- Dormant or newly started companies. A company with little or no activity still has filing duties; see keeping a dormant company compliant.
- Non-resident-managed companies. A company incorporated in Mauritius but centrally managed and controlled abroad is treated as non-resident under section 73A, yet it must still file a return under section 116. Tax residence generally follows incorporation or central management and control (section 73).
How the quarterly cycle works
Each APS cycle follows the same logic, whatever the size of the company.
- Estimate the profit
Use the management accounts and the latest forecast to estimate taxable income for the year.
- Compute the instalment
Apply the rate that fits the company's profile and subtract what has already been paid.
- File the APS return
Submit the return through the MRA online platform before the statutory deadline.
- Pay the instalment
Settle the amount with the return, using the payment reference generated by the system.
- Reconcile at year end
The annual return compares the instalments paid with the final tax computed.
The standard corporate rate on taxable income is 15%, under the First Schedule, Part IV of the Income Tax Act, for income years starting on or after 1 July 2010. Reduced rates and partial exemptions exist for particular activities, so the rate in your own computation depends on what the company does. For the underlying rules, see how a Mauritius company is taxed on its profits.
APS and the CCR Levy
The Corporate Climate Responsibility (CCR) Levy has made the APS calendar heavier. Section 50O of the Income Tax Act sets it at 2% of the chargeable income of any company, for the income year starting 1 July 2024 and each later year. No CCR Levy is due when the company's turnover for the income year does not exceed MUR 50 million.
Since the Finance Act 2026 (effective 13 August 2026), the payment method depends on whether the company is under APS:
- A company subject to APS pays the CCR Levy in three instalments of 25%, together with its APS returns, and the balance with the annual return.
- Any other company pays the levy with the annual return.
The levy cannot be reduced by tax credits, with two exceptions: the credit under section 161A(58A) and a credit under section 76. That makes cash planning important, since a foreign tax credit that lowers your income tax may not lower the levy.
15%
Standard corporate tax rate
Source: Income Tax Act, First Schedule, Part IV
2%
CCR Levy on chargeable income
Source: Income Tax Act, section 50O
MUR 50 million
CCR Levy turnover threshold
Source: Income Tax Act, section 50O
25%
Share of CCR Levy per APS instalment
Source: Finance Act 2026
Related charges that sit beside APS
APS is one item in a wider annual tax picture. The table below shows how the main corporate charges mentioned in the Income Tax Act relate to it.
| Charge | Basis | Link with APS |
|---|---|---|
| Corporate income tax | 15% standard rate on taxable income | Paid on account through instalments, then reconciled |
| CCR Levy | 2% of chargeable income; none if turnover is MUR 50 million or less | Three instalments of 25% with APS returns, balance with the annual return |
| CSR fund | 2% of the previous year's taxable income (section 50L) | Set aside as a fund; see CSR contribution |
| Alternative Minimum Tax | 10% of adjusted book profit where normal tax falls below that level | Applies from the income year starting 1 July 2026, to certain sectors only |
The Alternative Minimum Tax (section 44A) targets licensed hotels, insurers, financial intermediaries, property companies and telecommunications companies. It does not apply to a global business entity, nor to exempt entities in Part I of the Second Schedule. If your company is in one of the targeted sectors, factor it into the profit estimate behind each instalment.
Common errors with APS
The same mistakes recur, and most can be avoided with a routine.
Treating APS as optional or as a year-end task
An instalment is tied to a quarterly deadline. Estimating the full year's tax in the last week before the annual return defeats the purpose and invites penalties. Put each APS date in your compliance calendar.
Estimating profit without current accounts
If bookkeeping is months behind, the estimate is a guess. Keep the ledgers current and review management accounts each quarter so the computation rests on real figures.
Forgetting the CCR Levy in the cash plan
Companies often budget for income tax and overlook that the levy follows the APS timetable. Add the levy instalments to the same payment schedule.
Ignoring non-deductible items
Capital expenditure, private costs and disallowed provisions do not reduce taxable income. See which expenses a company can deduct and capital allowances before finalising the estimate.
Not revisiting the estimate after a change
A large contract, a disposal or an unexpected loss changes the year's profit. Refresh the computation rather than repeating the previous quarter's figure. A tax loss can sometimes be carried forward; see carrying forward a tax loss.
Mixing up deadlines and payment references
A return filed without the matching payment, or a payment under the wrong reference, can leave the account showing a shortfall. Reconcile the MRA taxpayer account after every payment.
Letting the director sign off without a check
The board is responsible for the company's compliance. Even when an accountant prepares the file, someone with authority should review it. Directors' duties apply to tax filings as much as to any other statutory duty.
Filing and paying online
APS returns and payments are made through the MRA's online services. A company needs a registered account, authorised users and a current taxpayer profile. If the person who normally files leaves, update the access at once so that a deadline is not missed. The MRA online filing walkthrough covers the practical steps, and the corporate income tax return guide explains how APS ties into the annual return.
A short checklist before each instalment
- Bookkeeping is up to date to the end of the quarter
- Taxable income for the year has been re-estimated
- Instalments already paid have been deducted
- The CCR Levy share has been included, if the company is within scope
- Sector-specific charges, such as the Alternative Minimum Tax, have been considered
- The return is filed and the payment made under the correct reference
- The confirmation is stored with the company records
For the yearly picture, the annual compliance checklist places APS alongside the other recurring duties. If a return is questioned later, see preparing for an MRA tax review and the page on penalties for non-compliance.
If you would like a licensed provider to look at your filing routine, you can send a request through the contact form.
FAQ
What does APS stand for in Mauritius?
APS stands for advance payment system. It is the MRA scheme under which certain companies pay income tax in quarterly instalments during the income year, each with an APS return, rather than paying the whole amount with the annual return.
Do all companies have to use the APS?
Not necessarily. The scheme applies to companies falling within it, while others pay with the annual return. Global business entities and exempt entities are treated differently from ordinary domestic companies. Check your own status with the MRA or an adviser.
How is the CCR Levy paid under APS?
Since the Finance Act 2026, effective 13 August 2026, a company under APS pays the CCR Levy in three instalments of 25% with its APS returns and the balance with the annual return. A company outside APS pays it with the annual return only.
Is there a turnover threshold for the CCR Levy?
Yes. No CCR Levy is due where the company's turnover for the income year does not exceed MUR 50 million. Above that level, the levy is 2% of chargeable income.
Can the CCR Levy be reduced by tax credits?
Very little. The Income Tax Act allows only the credit under section 161A(58A) and a credit under section 76 to reduce it. Other credits that lower the income tax do not reduce the levy.
Does the Alternative Minimum Tax affect my instalments?
Only if the company is in a targeted sector: licensed hotels, insurers, financial intermediaries, property companies or telecommunications companies. It applies from the income year starting 1 July 2026 and does not apply to global business entities. Where it applies, the minimum tax is 10% of adjusted book profit if normal tax falls below that level.
What happens if I underestimate my profit during the year?
The annual return reconciles the final tax with the instalments, so a shortfall is settled then. Late or inadequate instalments may attract penalties, so revise your estimate when circumstances change and ask an adviser about your case.
Does a dormant company make APS payments?
A dormant company still has filing obligations, but whether instalments are due depends on its income. If there is no taxable income, there is generally nothing to pay on account, yet the returns must still be submitted.