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Tax issues

Tax in Mauritius

  • The current corporate tax rate is 15%.  For GBL1 – net effective tax reduced to 3%, as it is entitled to tax credit of 80%; GBL 2 – tax exempt.
  • No withholding tax on interest, and dividends.
  • Capital gains taxes (CGT) are applicable on gains derived from the sale or transfer of immovable property. [For GBL1 – specific conditions/ exemptions may apply].
  • Dividends are tax free in the hands of shareholders who are non residents of Mauritius.  For residents of Mauritius a solidarity income tax of 10 per cent of the specified exempt income [including dividends] shall be applicable if the total income of the individual exceeds 2 million rupees in an income year.
  • No inheritance taxes.
  • The VAT rate is currently 15%.

Double Taxation Agreements

Mauritius has concluded 37 tax treaties and is party to a series of treaties under negotiation. The treaties currently in force are:

Bangladesh Barbados Belgium
Botswana Croatia Cyprus
Democratic Socialist Republic of Sri Lanka France
 
Germany
 
India Italy Kuwait
Lesotho Luxembourg Madagascar
Malaysia Mozambique Namibia
Nepal Oman Pakistan
People’s Republic of China Qatar Republic of Congo
Rwanda Senegal Seychelles
Singapore South Africa Swaziland
Sweden Thailand Tunisia
UgandaUnited Arab EmiratesUnited Kingdom
Zimbabwe  

Tax Residence Certificate (TRC)

If a GBL1 company wishes to access the benefits of the DTA network, it requires a TRC which is issued by the Director General of the MRA in Mauritius under the recommendations of the FSC.  The company must show that its "place of management and control” is in Mauritius.
In determining whether the conduct of business is managed and controlled from Mauritius, the GBL1 company must comply with the following:

  • Shall have or has at least 2 directors, resident in Mauritius, of sufficient calibre to exercise independence of mind and judgement;
  • Shall maintain or maintains at all times its principal bank account in Mauritius;
  • Shall keep and maintain or keeps and maintains, at all times, its accounting records at its registered office in Mauritius;
  • Prepare or proposes to prepare its statutory financial statements and causes or proposes to have such financial statements to be audited in Mauritius;
  • Provides for meetings of directors to include at least 2 directors from Mauritius.
Tax issues
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