Tax Structure in Mauritius

Mauritius is a preferred investment destination because of the attractive fiscal framework it offers. Many investors use this platform to invest in emerging economies worldwide such as India, China and others. Local tax laws and International tax treaties are the backbone of the tax structure.

 

Mauritius runs a self-assessment system based on the residence concept. A person resident in Mauritius is liable to tax on the worldwide income derived by that person. A non-resident is taxed on income derived from sources in Mauritius. However, all income derived from overseas by an individual resident in Mauritius is taxable to the extent it is remitted to Mauritius.

 

Income tax is payable on income derived in the preceding year. The fiscal year runs from 1 July to 30 June.

 

A company holding a Category 1 Global Business License is liable to tax at the rate of 15%.

 

 

A Company holding a Category 2 Global Business License is not considered to be resident in Mauritius and is not liable to tax. As a non-resident of Mauritius such a company is not covered by any Double Taxation Agreement concluded by Mauritius.

 

Residents of Mauritius are eligible to a tax credit in respect of foreign tax paid on their foreign source income. The foreign tax credit includes tax sparing credit and in the case of dividends credit is also granted for underlying tax charged on profits out of which the dividends are paid.

 

Where, in the case of a company holding a Category 1 Global Business Licence or a bank holding a banking licence under the Banking Act 2004 in so far as its banking transactions with non-residents and corporations holding a Category 1 Global Business Licence are concerned, written evidence is not presented to the Director General showing the amount of foreign tax paid, the amount of foreign tax paid is presumed to be equal to 80% of the Mauritius tax.