The illustration below shows the PAYE Calculation Checklist for the month of August for an employee who is not subject to tax because he is under the Diaspora Scheme.
According to the Economic Development Board (EDB), the Diaspora Scheme applies to employees who have returned to work in Mauritius after spending at least 10 years abroad. To benefit from this scheme, they must apply to the Economic Development Board (EDB) and obtain a certificate of eligibility for the Diaspora Scheme.
To qualify an employee under the Diaspora Scheme through HRMS, follow the steps below:
a) Go to the Employee menu
b) Select Employee List
c) Filter and select the employee record
d) Open General Info
e) Click Categories / Groups / UD
f) Go to the General Info – Groups section
g) Activate the Diaspora flag
h) In the Diaspora until (Fiscal Year) field, enter the next fiscal year in which PAYE will start being calculated
Note: After the PAYE exemption period, the employee may submit an EDF in the new fiscal year and may become taxable, depending on his reliefs and exemptions.
Once the diaspora-related information has been recorded and the payroll calculation completed, verify the PAYE Calculation Checklist.
Check the Pay Period: In this example, the PAYE Calculation Checklist is for the month of August.
Check the “Your PAYE Particulars” section: In this example, the employee has not submitted an EDF, is a Citizen of Mauritius, and is under the Diaspora Scheme.
Step 1 – Check the Emoluments for the month, for example: salary, overtime, daily allowance, and commission.
Step 2 – Check the Total emoluments paid in previous months, which in this example refers to the July emoluments, since the PAYE Calculation Checklist is for the month of August.
Step 3 – Since no EDF has been submitted, reliefs and exemptions are not applicable in this case.
Step 4 – Ensure that the Chargeable income corresponds to the difference between the total emoluments (including taxable benefits) and the less reliefs and exemptions.
Step 5 – Check that the Tax Charged (PAYE) is zero, as the employee is under the Diaspora Scheme.
Step 6 – Check the Tax paid in previous months, which in this example refers to the July tax, since the PAYE Calculation Checklist is for the month of August.
Step 7 – “Tax to be withheld in the month” represents the difference between the Tax Charged (PAYE) and the tax paid in previous months. In this case, the amount is zero because the employee is not taxable under the Diaspora Scheme.