Fiscal Regime

  • Currency – Mauritian Rupee (MUR)
  • Foreign exchange control – No
  • Accounting principles/financial
  • statements – IAS/IFRS. Financial
  • statements must be filed annually.

Principal business entities – These are the private and public limited liability company, sole proprietorship, branch of a foreign company and sociéte.

  • Residence – A company is resident if it is incorporated in Mauritius or its central management and control is in Mauritius.
  • Basis – Residents are taxed on worldwide income; nonresidents are taxed only on Mauritius-source income.
  • Taxable income – Income tax is imposed on a company’s profits, which consist of business/trading profits and passive income.
  • Normal business expenses are deductible in computing taxable income.
  • Taxation of dividends – Dividends paid by a Mauritius-resident company are exempt from income tax. Foreign dividends are taxable, but a credit can be claimed for underlying and withholding tax.
  • Capital gains – No tax is imposed on capital gains in Mauritius.
  • Losses – Losses may be carried forward for five years, except for losses arising from annual allowances on capital expenditure incurred after 1 July 2006. The carryback of losses is not permitted.
  • Rate – 15% Surtax – No
  • Alternative minimum tax – An alternative minimum tax equal to the lower of 7.5% of accounting profits or 10% of dividends declared for the relevant year is imposed.
  • Foreign tax credit – Foreign tax paid may be credited against Mauritius tax on the same income. A company holding a Category 1
  • Global Business License (GBC 1 company) is entitled to claim a credit for the greater of the actual foreign tax incurred or a deemed
  • foreign tax credit equivalent to 80% of the Mauritius tax payable, giving a maximum effective tax rate of 3%.
  • Participation exemption – No
  • Holding company regime – No
  • Incentives – No
  • Dividends – Mauritius does not levy withholding tax on dividends.
  • Interest – A 10% withholding tax generally applies, unless it is specifically exempted.
  • Royalties – The general rate of withholding on royalties is 15%, although a 0% rate applies to specified nonresidents.
  • Technical service fees – A 10% withholding tax is generally levied on technical service fees, unless specifically exempted.
  • Branch remittance tax – No
  • Other – No
  • Capital duty – No
  • Payroll tax – No
  • Real property tax – No
  • Social security – The employer is required to make pay-related social security contributions equal to 6% of the monthly basic salary (capped).
  • Stamp duty – No
  • Transfer tax – No
  • Other – No
  • Transfer pricing – No
  • Thin capitalization – No
  • Controlled foreign companies – No
  • Other – No
  • Disclosure requirements – No
  • Tax year – The calendar year to 31 December, or the accounting year end, which may not exceed 12 months, may be used.
  • Consolidated returns – Consolidated returns are not permitted; each company must file a separate return. There is no relief for group losses.
  • Filing requirements – Mauritius operates a self-assessment regime. Quarterly tax payments on account are required. Annual tax returns must be filed and the balance of tax paid within 6 months of a company’s year end.
  • Penalties – Penalties are imposed for the late submission of a tax return and interest is charged for the late payment of tax.
  • Rulings – Taxpayers may request a ruling on the tax consequences of transactions.
  • Basis – Mauritius residents are taxed on Mauritius-source income and foreign income remitted to Mauritius. Nonresidents are taxed only on Mauritius-source income.
  • Residence – An individual is resident if he/she is domiciled in Mauritius, spends more than six months of the tax year in Mauritius or has a combined presence of at least 270 days in that tax year and the two preceding tax years.
  • Filing status – Separate assessment is compulsory for a married couple. Joint income can be declared in any proportion.
  • Taxable income – Taxable income includes employment income, pensions, profits from a trade and profession, rents and interest.
  • Capital gains – No tax is levied on capital gains in Mauritius.
  • Deductions and allowances – A single deduction, called the “Income Exemption Threshold,” is granted.
  • Rates – 15%
  • Capital duty – No
  • Stamp duty – No
  • Capital acquisitions tax – No
  • Real property tax – No
  • Inheritance/estate tax – No
  • Net wealth/net worth tax – No
  • Social security – The employee must make pay-related social security contributions) equal to 3% of the monthly basic salary (capped).
  • Tax year – Calendar year
  • Filing and payment – Tax on employment income is withheld monthly by the employer under the PAYE system and remitted directly to the tax authorities. Income not subject to PAYE is self-assessed, and the individual
  • must make quarterly payments and file a tax return by 31 March.
  • Penalties – Penalties apply for late filing and interest is imposed for late payment of tax liability.
  • Taxable transactions – VAT is levied on the supply of goods and the provision of services.
  • Rates – 15%
  • Registration – The registration threshold is MUR 4 million.
  • Filing and payment – Filing and payment is made on a monthly or quarterly basis.

DTA Summary

SUMMARY OF DOUBLE TAXATION TREATIES

Country Duration to constitute permanent establishment Maximum tax rates applicable in the State of Source
Building Site etc Furnishing of services Dividends Interest(i) Royalties
1 Australia (Partial)
2 Barbados 6 months (iv) 5% 5% 5%
3 Belgium > 6 months (iv) 5% & 10% 10% Exempt
4 Botswana > 6 months > 6 months (ii) 5% & 10% 12% 12.5%
5 China > 12 months > 12 months(iii) 5% 10% 10%
6 Congo > 12 months > 12 months 0% & 5% 5% Exempt
7 Croatia > 12 months (iv) Exempt Exempt Exempt
8 Cyprus > 12 months > 9 months (ii) Exempt Exempt Exempt
9 Egypt > 6 months > 6 months 5% & 10% 10% 12%
10 France > 6 months (iv) 5% & 15% same rate as under domestic law 15%
11 Germany (new) > 12 months (iv) 5% & 15% Exempt 10%
12 Guernsey > 12 months > 9 months Exempt Exempt Exempt
13 India > 9 months (iv) 5% & 15% same rate as under domestic law 15%
14 Italy > 6 months (iv) 5% & 15% same rate as under domestic law 15%
15 Kuwait > 9 months (iv) Exempt Exempt 10%
16 Lesotho > 6 months > 6 months (ii) 10% 10% 10%
17 Luxembourg > 6 months (iv) 5% & 10% Exempt Exempt
18 Madagascar > 6 months (iv) 5% & 10% 10% 5%
19 Malaysia > 6 months (iv) 5% & 15% 15% 15%
20 Monaco > 12 months > 12 months Exempt Exempt Exempt
21 Mozambique > 6 months > 6 months (ii) 8%, 10% & 15% 8% 5%
22 Namibia > 6 months > 6 months (ii) 5% & 10% 10% 5%
23 Nepal > 6 months > 6 months (ii) 5%, 10% & 15% 10% & 15% 15%
24 Oman > 6 months (iv) Exempt Exempt Exempt
25 Pakistan > 6 months (iv) 10% 10% 12.5%
26 Rwanda > 6 months > 6 months 10% 10% 10%
27 People’s Republic of Bangladesh >12 months > 12 months 10% normal rate normal rate
28 Senegal > 9 months > 9 months (i) Exempt Exempt Exempt
29 Seychelles > 12 months > 6 months (ii) Exempt Exempt Exempt
30 Singapore > 9 months (iv) Exempt Exempt Exempt
31 South Africa > 9 months (iv) 5% & 15% Exempt Exempt
32 Sri Lanka > 6 months > 6 months (ii) 10% & 15% 10% 10%
33 State of Qatar > 6 months > 6 months (ii) Exempt Exempt 5%
34 Swaziland > 6 months > 6 months(ii) 7.5% 5% 7.5%
35 Sweden (New) > 12 months (iv) 0% & 15% Exempt Exempt
36 Thailand > 6 months > 6 months (ii) 10% 10% & 15% 5% & 15%
37 Tunisia > 12 months (iv) Exempt 2.5% 2.5%
38 Uganda > 6 months > 4 months (ii) 10% 10% 10%
39 United Arab Emirates > 12 months > 12 months Exempt Exempt Exempt
40 United Kingdom > 6 months (iv) 10% & 15% Same rate as under domestic law 15%
41 Zimbabwe > 6 months (iv) 10% & 20 % 10% 15%
42 Zambia > 9 months (iv) 5% & 15% 10% 5%
  1. where interest is taxable at rate provided in the domestic law of the State of source or at reduced treaty rate, provision is usually made in the treaty to exempt interest receivable by a Contracting State itself, its local authorities, its Central Bank/all banks carrying on bona fide banking business and any other financial institutions as may be agreed upon by both Contracting States.
  2. within any 12-month period
  3. within any 24-month period
  4. no specific provision made in respect of furnishing of services.

Tax Information Exchange Agreements (TIEAs)

In Force:

Signed:

Austria, Faroe Island, Greenland


Await signature:

Argentina, Greece, Isle of Man and Korea

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