Overview of the Voluntary Disclosure Incentive Scheme for Small and Medium Enterprises (VD-SME)
The Mauritian Revenue Authority (MRA) has announced a special scheme aimed at assisting small and medium enterprises (SMEs) in regularising their tax affairs. This initiative, known as the Voluntary Disclosure Scheme for Small and Medium Enterprises (VD-SME), was introduced following amendments to the Finance (Miscellaneous Provisions) Act 2019. The scheme offers a unique opportunity for eligible SMEs to declare previously undisclosed income or taxable supplies without facing penalties or interest, provided they adhere to the scheme’s conditions.
Scope and Eligibility Criteria
The VD-SME is specifically designed for SMEs operating within the legal framework established under Section 28 (18) of the Mauritius Revenue Authority Act. To qualify, a business must meet the following criteria:
- The enterprise’s turnover for the assessment year 2017-2018 must not exceed 50 million rupees.
- The business must not be classified as an accountant, accounting firm, architect, attorney or solicitor, barrister, engineer, land surveyor, legal consultant, medical service provider, project manager in the construction industry, property valuer, quantity surveyor, or tax adviser or their representative.
It is important for SMEs to verify that they fall within these parameters before considering participation in the scheme.
Scope of the Disclosure and Benefits
The scheme covers two main types of disclosures:
- Undeclared or under-declared income for the assessment year 2017-2018 and any previous years.
- Undeclared or under-declared taxable supplies for the taxable period ending 30 June 2018 and any earlier taxable periods.
SMEs that voluntarily disclose such income or supplies and meet the stipulated conditions will benefit from a full waiver of penalties and interest. This incentive aims to encourage compliance and facilitate the formalisation of business activities that may have previously been unreported or underreported.
Operational Details and Deadlines
The VD-SME scheme became operational from the date of the official notice on 6 September 2019. The scheme remains open for applications until 29 November 2019. SMEs interested in participating must ensure that their disclosures are submitted within this timeframe to benefit from the scheme’s incentives.
Applicants are encouraged to consult the official MRA website for comprehensive guidance on the procedures for making disclosures and the specific documentation required.
Implications for SMEs and Next Steps
Participation in the VD-SME provides a significant opportunity for SMEs to rectify their tax records with minimal financial penalties. By voluntarily declaring previously undeclared income or supplies, businesses can improve their compliance status and avoid future legal or fiscal complications.
SMEs should prepare the necessary documentation, including detailed records of their income and supplies for the relevant periods, and consider seeking professional advice if needed. The process is primarily digital, with applications and disclosures to be submitted through the MRA’s online platforms, leveraging the e-filing system tied to the National ID Card and Central Population Database.
Further Information and Assistance
For additional details on the scheme, eligibility criteria, and application procedures, SMEs are advised to visit the official Mauritius Revenue Authority website at www.mra.mu. The site provides comprehensive resources, including guidelines and contact details for support services.
Engaging with the VD-SME scheme represents a proactive step towards ensuring that your business’s tax affairs are transparent and compliant with Mauritian tax law. Timely action before the scheme’s deadline can save your enterprise from future penalties and foster a more robust fiscal standing.
