- Investment Basics
Foreign Exchange Control – No
Accounting principles/financial statements – Must be filed annually.
Principal business entities – Private and public limited liability company, sole proprietorship, branch of a foreign company and société.
- Corporate Taxation
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; non-residents are taxed only on Mauritius-source income.
Taxable Income – Income 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 may be claimed for underlying tax and withholding tax.
Capital Gains – No tax is imposed on capital gains.
Losses – Losses may be carried forward for five years, except for losses arising from annual allowances on capital expenditure incurred after 1 July 2006, which may be carried forward indefinitely. The carryback of losses is not permitted.
Alternative minimum tax – This has been repealed with effect from 1 July 2015.
Foreign tax credit – This may be credited against Mauritius tax on the same income.
Participation exemption – No
Holding company regime – No
Incentives – No
Rate – 15%
Surtax – No
- Withholding tax
Dividends – Mauritius does not levy withholding tax on dividends.
Interest – A 15% withholding tax generally applies to interest paid by any person, other than a bank or non-bank deposit-taking institution, to any person other than a company resident in Mauritius, unless specifically exempted.
Royalties – The general rate of withholding tax on royalties paid to non-residents is 15%, although a 0% rate applies to specified non-residents. A 10% withholding tax generally applies to royalties paid to residents.
Technical service fees – A 10% withholding tax is generally levied on technical service fees paid to non-residents, unless specifically exempted.
Branch remittance tax – No
- Other taxes on corporations
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% (National Pension Fund), 2.5% (National Solidarity Fund) and 1.5% (for the HRDC levy) of the monthly basic salary.
Stamp Duty – No
Transfer tax – No
- Anti-avoidance rules
Transfer pricing – No
Thin capitalization – No
Controlled foreign companies – No
Disclosure requirements – No
- Compliance for corporations
Tax year – Is the calendar year ending on 31 December or the accounting year, which may not exceed 12 months.
Consolidated returns – They 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 payable is due within six months of a company’s year-end.
Penalties – They 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.
- Personal Taxation
Basis – Mauritius residents are taxed on Mauritius-source income and foreign income remitted to Mauritius. Non-residents 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 in Mauritius 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 may be declared in any proportion.
Taxable income – Taxable income includes employment income, pensions, profits from ta trade and profession rents and interest.
Capital gains – No tax is levied on capital gains in Mauritius.
Deductions and allowances – Deduction in terms of “Income Exemption Threshold” is granted.
Rates – 15%
- Other taxes on individuals
Capital Duty – No
Stamp duty – No
Capital acquisition 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% (National Pension Fund) and 1% (National Solidarity Fund) of the monthly basic salary.
- Compliance for individuals
Tax year – 1 July to 30 June
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.
Penalties – They apply for late filing, and interest is imposed for late payment on the axe liability.
- Value Added Tax
Taxable transactions – VAT is levied on the supply of goods and the provision of services.
Rates – 15%
Registration – The registration threshold is MUR 6 million.
Filing and payment – Filing and payment are made on a monthly or quarterly basis.
Mauritius has concluded more than 43 tax treaties.