GUIDE ON

CORPORATE
SOCIAL
RESPONSIBILITY (CSR)

Nov 2024
TABLE OF CONTENTS

A. Introduction 2

B. Definition of Corporate Social Responsibility programme 4

C. Calculation of CSR 4

D. Priority Areas of Intervention 5

E. Prohibition to use CSR Fund 6

F. Remittance of CSR to the MRA 6

G. No Deduction allowed against any credit available 6

H. Illustration 7

I. Freeport Operator 8

J. Gambling Operator 8

K. Assessment 9

List of Abbreviations
APS Advance Payment System
CSR Corporate Social Responsibility
ITA Income Tax Act 1995
MRA Mauritius Revenue Authority
NSIF National Social Inclusion Foundation

Corporate Social Responsibility 1

 A. Introduction
Fighting poverty has been on the agenda of successive governments
in Mauritius. The Budget Speech 2009, enacted in Parliament through
the Finance Act 2009 announced that all companies are now required
to spend 2 per cent of their profits on CSR or transfer these funds to be
used for social and environmental projects.
Furthermore, the country is one of the first in the world to have made it
mandatory for profit making entities to devote 2% of their book profits
to CSR activities since 2009 with a view to promote a more sustainable
development.
Hence, corporate bodies in Mauritius are required to operate a
Corporate Social Responsibility (CSR) Fund in accordance with Section
50L of the Income Tax Act 1995 (ITA).
The purpose of this guide is to assist all those corporate concerned
bodies in remitting the correct CSR amount at the appropriate time
and clarify the areas where CSR money can be used.
CSR is applicable to all profitable companies and resident société
except for the following:
a. A Global Business company;
b. A bank for its transactions with non-residents or with corporations
holding a Global Business Licence;
c. An IRS company;
d. A non–resident société, foundation, trust;
e. A Freeport Operator or Private Freeport Developer in respect of
income derived from export; and
f. A company which has elected to pay a presumptive tax under
section 111V.

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Companies, listed in Sub Part C of Part II of the Second Schedule of the
ITA (Items 11, 11A, 26, 28 to 31, 34, 36 and 38 and any other items as
may be prescribed), are exempted from payment of tax but are liable
to CSR.
Previously a company or a resident société could expense the whole
CSR fund according to its own CSR framework and any amount unspent
at the closing date of accounts was then remitted to the MRA at the
time the return was submitted.
Following the Finance Act 2016, a company or a resident société has
an obligation to remit a percentage of its CSR fund to the Director-
General in accordance with Section 50L(2)(a) of the ITA.

Corporate Social Responsibility 3

 B. Definition of CSR programme
CSR programme is defined in Section 2 of the ITA as a programme
having as main objective to alleviate poverty, to relieve sickness or
disability, to advance the education of vulnerable persons or to promote
any other public object beneficial to the Mauritian Community.

C. Calculation of CSR
According to Section 50L of the ITA:-
a. (i) Company
All profitable companies are required in a year to set up their CSR
Fund of an amount equivalent to 2% of their chargeable income of
the preceding income year.
(ii) Société
In the case of a resident société, the net income is deemed to be
the chargeable income and any distribution of its net income shall
be deemed to be dividends.

Example 1
Company C has a financial year ending on 31 December 2019. 75% of
its CSR fund shall be remitted to the Director-General since it was set
up on ‘01 January 2019’.
The CSR fund will be computed at 2% of its previous year’s chargeable
income, which is, the chargeable income reported in the year ended
31 December 2018.
Illustration: Assuming the chargeable income for the year ended 31
December 2018 was Rs. 4m. The CSR fund on 01 January 2019 will be
Rs. 80,000.
Remaining percentage of the CSR Fund
The remaining 25% of the CSR Fund shall be used by the company
to implement a CSR Programme or finance a non-governmental
organisation implementing a CSR Programme in the priority areas of
intervention as specified on page 5.

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D. Priority Areas of Intervention
A CSR programme can be implemented in the following priority areas
of intervention as specified in Part A and Part AA of the Tenth Schedule
to the ITA:
• Dealing with health problems
• Educational support and training
• Environment and sustainable development
• Family protection, including gender-based violence
• Fields of advocacy, capacity building and research for consideration
as crosscutting throughout the priority areas of intervention
• Leisure and sports
• Peace and nation-building
• Road safety and security
• Social housing
• Socio-economic development as a means for poverty alleviation
• Supporting people with disabilities
• Such other areas as the Minister may determine
Note:
The priority areas specified above shall target individuals and families
who are registered under the Social Register of Mauritius and
vulnerable groups under the Charter of the National Social Inclusion
Foundation.
• Restoration of a building designated as a national heritage under
the National Heritage Fund Act (amended in Finance Act 2021,
w.e.f 05 August 2021).

Corporate Social Responsibility 5

 E. Prohibition to use CSR Fund
Activities and contributions which do not qualify under the CSR Fund
are as follows:
• Any activity discriminating on the basis of race, place of origin,
political opinion, colour, creed or sex
• Any activity promoting alcohol, cigarettes or gambling
• Any activity targeting shareholders, senior staff or their family
• Contribution to any Government department or parastatal body
• Contribution to natural disasters mitigation programme
• Contribution to political or trade union activities
• Contribution to religious or spiritual activities
• Sponsorship for the purpose of marketing for companies
• Staff welfare and training of employees

F. Remittance of CSR to the MRA

75% of the CSR Fund shall be remitted to the Director-General as
follows:
a. in the case of a company required to submit an APS Statement
under Sub-part AA of the ITA, ‘Advance Payment System’ –
i. for the first three quarters, 25 per cent for each of the quarters
together with the APS Statement are required to be submitted
under section 50B of the ITA; and
ii. for the last quarter, 25 per cent at the time the company submits
its annual return under section 116 of the ITA;
b. a company which is not required to submit an APS Statement under
section 50B(4), should remit the CSR together with its annual return
under section 116 or 119 of the ITA.

G. No Deduction allowed against any credit available

Any amount of CSR payable shall not be reduced or offset by any
credit or against any tax which may be available under the ITA.

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Authorisation to remit a reduced amount to the MRA
In respect of CSR Fund set up on or after 01 January 2019, where the
company has not completed a project which was started prior to 01
January 2019 and which is in accordance with the guidelines set by
the National Social Inclusion Foundation, it may apply to the National
Social Inclusion Foundation for approval to retain an additional amount
of less or equal to 25% of the CSR Fund out of 75% payable to the
MRA.

H. Illustration
For companies with financial year ending 31 December 2019
The financial year of the company is from January to December.
CSR Fund is set up at the beginning of the year and therefore the CSR
fund, based on the company’s chargeable income of the preceding
year, was created on 01 January 2019. CSR fund amounts to Rs
600,000. Hence, at least 75% of the CSR Fund, Rs 450,000 will have to
be remitted to the Director-General, MRA for onward payment to the
National Social Inclusion Foundation. This payment to the MRA should
be made through the company’s APS statement as follows:

Amount Payable
Quarter Period
to be remitted on/before
01 January 2019 to
1 25% Rs. 112,500 26.06.2019
31 March 2019
01 April 2019 to
2 25% Rs. 112,500 30.09.2019
30 June 2019
01 July 2019 to
3 25% Rs. 112,500 27.12.2019
30 September 2019
Annual Income Tax Return 25% Rs. 112,500 26.06.2020

Any unspent CSR balance as at 31 December 2019 has to be remitted

with the Annual Income Tax Return.
The remaining 25% of the CSR fund, Rs. 150,000 may be used by
the company to implement a CSR programme in the priority areas of
intervention.

Corporate Social Responsibility 7

 Some examples showing the financial year end, the date for the setting
up of CSR Fund and the proportion of CSR to be remitted to Director-
General, are given below:

Amount to be
Financial year ended CSR fund set up
remitted (%)
31 December 2020 01 January 2020 75
31 March 2021 01 April 2020 75
30 June 2021 01 July 2020 75
31 March 2022 01 April 2021 75
31 December 2022 01 January 2022 75

I. Freeport Operator
Where a freeport operator or private freeport developer is engaged
in the sale of goods on the local market, CSR fund shall be calculated
as per Section 50L (14) of the ITA, using the formula set out below –
a x c x 2 per cent
b
where:
a is the gross income derived from sale of goods on the local market
for the preceding year
b is the gross income derived from all the activities of the freeport
operator or private freeport developer for the preceding year
c is the chargeable income for the preceding year.

J. Gambling Operator
A gambling operator licensed with the Gambling Regulatory Authority,
and listed under Part II of the Fifth Schedule to the Gambling Regulatory
Authority Act, may claim as a deduction from gambling levy, any
amount paid towards the setting up of a CSR Fund as set out in the
Gambling Regulatory Act under Section 115A.

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K. Assessment
Where, in respect of a year of assessment, the Director-General has
reason to believe that money has not been spent in respect of a CSR
Fund (as specified on page 4 under ‘Calculation of CSR’), he may raise
an assessment under section 129 of the ITA.

Corporate Social Responsibility 9

 Ehram Court, Cnr Mgr. Gonin & Sir Virgil Naz Streets, Port Louis, Mauritius
T: +230 207 6000 | F: +230 211 8099 | E: headoffice@mra.mu | W: www.mra.mu

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