TDS (Tax Deduction at Source): rates, thresholds and deadlines for an accounting practice
TDS requires certain payers to withhold their beneficiary's tax directly from the payment, before remitting it to the MRA, somewhat like PAYE for an employee. A practice handling several clients' files runs into it constantly: every rent payment, every commission, every subcontractor invoice can be affected.
An exemption threshold to check before looking up rates
Before asking which rate applies, check whether TDS applies at all. A company whose annual turnover doesn't exceed 6 million rupees isn't required to apply TDS, except for construction contracts, where the obligation applies regardless of turnover.
A second threshold, at the payment level this time: TDS doesn't apply if the tax to withhold is under 500 rupees, but an annual statement is still due even in that case, showing the amount paid.
The most common rates for a practice
The MRA defines 14 categories of payment subject to TDS. Here are the five that most practices actually run into:
| Payment type | Rate |
|---|---|
| Rent — paid to a resident | 7.5% |
| Rent — paid to a non-resident | 10% |
| Commission | 3% |
| Payments to contractors (subcontractors) | 0.75% |
| Service providers (architects, accountants, lawyers…) | 5% |
| Interest paid to a non-resident company | 15% |
Source: Mauritius Revenue Authority, “Tax Deduction at Source Guide”, October 2025, text extracted and checked 19 August 2026. Non-exhaustive list, 9 further categories exist (royalties, management fees, payments to a non-resident, public contracts…). Always check the official guide before advising a client: rates change with the annual Finance Act.
When to withhold, when to remit, when to file
- At the time of withholding: as soon as the payment is made to the beneficiary or credited to their account, whichever comes first.
- Remittance to the MRA: the 20th of the following month. Exception for May and November: 2 working days before the end of June and December respectively.
- Annual statement: due to both the beneficiary AND the MRA by 15 August of each year, detailing every payment and its corresponding withholding, including payments under the 500-rupee threshold where no withholding was made.
What Zenvia changes for the annual TDS statement
Let's be direct: Zenvia doesn't calculate TDS and doesn't file it. But the payments concerned, rent, subcontractor invoices, service provider fees, arrive with you first as supplier documents, and that's exactly what Zenvia files:
- Every invoice filed by supplier and by date, as soon as it's received, by 15 August finding what a subcontractor invoiced over the year doesn't mean reopening twelve months of emails.
- Amount read automatically on every document, the base for the withholding calculation is already extracted, apply the rate for the payment type.
- Export to your accounting tools , ready to filter by supplier to prepare the annual statement.
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Frequently asked questions
- Which businesses are exempt from TDS in Mauritius?
- A company whose annual turnover doesn't exceed 6 million rupees isn't required to apply TDS, except for construction contracts, where the obligation applies regardless of turnover.
- What are the most common TDS rates for an accounting practice?
- 7.5% on rent paid to a resident (10% to a non-resident), 3% on commissions, 0.75% on payments to subcontractors, and 5% on service providers' fees (architects, accountants, lawyers).
- When must TDS be remitted to the MRA and the annual statement filed?
- Remittance is due on the 20th of the month following the withholding (with an adjusted deadline for May and November). The annual statement must be given to the beneficiary and the MRA by 15 August each year at the latest.
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