Which tax rates apply to business in Mauritius?
Mauritius is a low tax jurisdiction with an investor-friendly environment to encourage both local and foreign companies to set up businesses.
The Fiscal regime includes:
- An attractive corporate and income tax rate of only 15%. All income accruing in or derived from Mauritius by a resident company is chargeable to corporate tax
- No capital gains tax
- Generally no withholding tax on dividends Exemption from customs duty on equipment(s)
The tax rate is as follows:
- Corporate tax: 15%
- Income tax (personal tax): 15%
- Value-Added Tax (VAT): 15%
- Corporate Social Responsibility (CSR tax): 2% on book profits
- Land Transfer tax: 5%
- Registration duty: 5%
The Mauritius Revenue Authority is the agency responsible for collecting corporate tax, income tax and VAT in Mauritius. The fiscal year runs from the 1st of July to the 30th of June.
Additionally, Mauritius offers two types of companies to international clients, namely the Category One Global Business Licence ("GBC 1") and the Category Two Global Business Licence ("GBC 2"). The formation and on-going maintenance of both companies are time and cost efficient and rest on very flexible and modern company and financial services legislations.
A GBC 1 company is tax resident in Mauritius and is eligible to benefit from the vast network of DTAs ratified by Mauritius. GBC1 companies also benefit from a deemed foreign tax credit equal to 80% of their taxable profits.
GBC 2 are tax exempt entities and hence are not considered tax resident for tax treaty purposes, but they are more user friendly and bear resemblance to the International Business Company ("IBC") available in other jurisdictions.
Originally produced by Juristconsult Chambers for DLA Piper.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.