CSR Contribution for Mauritian Companies

If you are asking what is CSR in Mauritius, the short answer is that it is a legal requirement in the Income Tax Act, not a matter of goodwill. Each company must build a Corporate Social Responsibility (CSR) fund calculated on its profits. This page explains the rule, how it differs from similar charges, and how a company deals with it in its yearly cycle.

It is general information. How the rule applies to a given company depends on its licence, its income and its accounting year, so the figures in your own file should be checked by an adviser.

What the CSR fund is

Under section 50L of the Income Tax Act, every company must set up a CSR fund equal to 2% of its chargeable income of the preceding year. Chargeable income is the taxable profit after the adjustments the Act allows; it is not the accounting profit shown in the financial statements.

Two points are worth noting from the start:

• The base is the previous year's chargeable income, not the current one. A company that has just had a strong year therefore feels the effect in the following year.
• The obligation is expressed as a fund the company must constitute. It is a statutory duty of the company itself, whatever its shareholders or directors decide.

The detailed conditions on how the fund may be applied, and what counts as an eligible use, are set by the Income Tax Act and by MRA guidance. Read them, or ask an adviser, before committing money to any programme.

Who pays: which companies are concerned

The rule applies to companies, and the tax residence of a company matters for the wider picture:

• A company is tax resident in Mauritius if it is incorporated in Mauritius or if its central management and control is in Mauritius (section 73).
• A company incorporated in Mauritius but centrally managed and controlled outside Mauritius is treated as non-resident under section 73A. It must still file an income tax return under section 116.

A company with no chargeable income in the preceding year has no profit base for the fund. A loss-making or newly formed company will therefore often have little or nothing to compute, although it still has its filing duties. A company that sits in a special category, for example one holding a Global Business Licence, should confirm how the rule applies to it rather than assume. For the broader picture of obligations, see corporate compliance in Mauritius.

CSR versus the CCR Levy and the Fair Share Contribution

Three charges are regularly confused. They sound alike but have different bases and triggers.

The Corporate Climate Responsibility (CCR) Levy is 2% of the chargeable income of any company, due for the income year starting on 1 July 2024 and each later year. No CCR Levy is due where the company's turnover for the income year does not exceed MUR 50 million.

The Fair Share Contribution applies to companies whose chargeable income exceeds MUR 24 million in the income year. Since the Finance Act 2026, effective 13 August 2026, the turnover criterion no longer applies. The separate page on the Fair Share Contribution covers it in detail.

The CCR Levy should not be mistaken for CSR. They share a rate, but they are separate provisions, with separate conditions and separate payment mechanics.

How the CSR amount is worked out

The calculation is simple once the tax computation is done. The difficulty is upstream, in getting chargeable income right.

Because the base is the prior year, the computation relies on a number that may later move. If the preceding year's chargeable income is changed after a query or review from the MRA, the dependent figure should be revisited. Keep the working papers and refer to the earlier computation each time.

Useful companion reading: which business expenses a company can deduct and capital allowances, since both reduce chargeable income, and therefore the base of the fund.

How it is declared

CSR does not stand alone as a separate stand-alone filing in the way a payroll return does. It is dealt with within the company's annual tax cycle:

1. The company prepares its financial statements and its tax computation.
2. The CSR figure is derived from the preceding year's chargeable income and shown in the computation supporting the return.
3. The return is submitted to the MRA online. The walkthrough in filing with the MRA online shows the mechanics, and the overview of the corporate income tax return explains the content.

For levies paid with returns, the timing depends on whether the company is within the quarterly instalment system. Since the Finance Act 2026, effective 13 August 2026, companies subject to the Advance Payment System (APS) pay the CCR Levy in three instalments of 25% with their APS returns and the balance with the annual return. Other companies pay it with the annual return. The mechanics of the system are described on the page about the Advance Payment System.

Because a company managed from abroad but incorporated in Mauritius still files a return under section 116, a non-resident classification under section 73A does not remove the filing step. If your company is run from another country, the point deserves a specific check with an adviser.

Practical checklist for directors

• Confirm the company's tax residence and whether section 73A applies
• Obtain the final chargeable income figure for the preceding year
• Compute the 2% CSR amount on that figure and keep the working
• Check separately whether the CCR Levy applies, using the turnover test
• Check whether the company is within the Advance Payment System
• Review whether the Fair Share Contribution threshold is exceeded
• Record the board's decision on how the fund will be applied
• Keep the supporting documents with the other company records

The wider cycle is mapped in the compliance calendar and the annual compliance checklist.

Common mistakes

Using accounting profit as the base. The rule refers to chargeable income. Starting from the profit shown in the accounts without tax adjustments gives the wrong figure.

Using the current year instead of the preceding year. The fund looks back one year. Mixing the two years produces an error that tends to repeat each year.

Treating CSR and the CCR Levy as one item. They have different legal bases and different conditions, including the turnover test that applies only to the CCR Levy.

Assuming a non-resident classification removes all filings. A company treated as non-resident because it is managed from abroad must still file a return.

Not keeping the working papers. In an MRA review, the first request is usually for the computation behind a figure. See preparing for an MRA tax review.