Fiscal Advantages

Mauritius, The Africa Centre of Excellence for Business

Mauritius offers a very attractive tax environment for investors:

  • 44 double taxation treaties with France, India, China, the United Kingdom and other major economic powers.
  • No tax on capital gains.
  • No Wealth Tax.
  • Free Repatriation of dividends, profits and capital.

This very favorable tax environment is regulated by the Financial Services Commission of Mauritius (FSC), consistent with standards of the International Organization of Securities Commissions (IOSCO). The Republic of Mauritius is considered by the World Bank/ IFC to be one of the best regulated jurisdictions in the developing world and compares very favourably with its Asian counterparts.

Some other Fiscal Advantages include :

  • GBC2 companies are tax exempt.
  • GBC1 companies are subject to low tax rates.
  • No withholding tax on remittance of branch profits.
  • No withholding tax on interest, royalties and dividends.
  • No limit on the carry forward of tax losses.
  • Royalties, interest and service fees payable to foreign affiliates are allowed as expenses provided they are reasonable and correspond to actual expenses incurred.
  • Investment tax credit of 10% for capital expenditure.
  • Interest paid on deposits in Category 2 banks are tax exempt.
  • No estate duty, inheritance or gift taxes.
  • No stamp duties, registration duties and levy.
  • Zero rated Value Added Tax for global business transactions.

Double Taxation Agreements

So far Mauritius has concluded 43 tax treaties and is party to a series of treaties under negotiation. The treaties currently in force are:

 

Australia (Partial) Barbados Belgium
Botswana Congo Croatia
Cyprus Egypt France

Germany (New) Guernsey India
Italy

Kuwait Lesotho
Luxembourg

Madagascar Malaysia
Malta Monaco Mozambique
Namibia Nepal Oman
Pakistan People’s Republic of Bangladesh People’s Republic of China

Rwanda Senegal Seychelles

Singapore Sri Lanka South Africa (New)
State of Qatar Swaziland Sweden (New)
Thailand Tunisia Uganda
United Arab Emirates United Kingdom

Zambia
Zimbabwe

 

  • 5 treaties await ratification : Gabon, Kenya, Morocco, Nigeria and Russia
  • 5 treaties await signature : Burkina Faso, Cape Verde, Cote D’Ivoire, Ghana and Jersey
  • 18 treaties being negotiated : Algeria, Canada, Czech Republic, Gibraltar, Greece, Hong Kong, Lesotho (New), Montenegro, North Sudan, Portugal, Republic of Iran, Malawi, Saudi Arabia, Spain, St. Kitts & Nevis, Tanzania, Vietnam and Yemen

HIGHLIGHTS OF MAURITIUS TAX 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 Malta > 12 months > 12 months Exempt Exempt Exempt
21 Monaco > 12 months > 12 months Exempt Exempt Exempt
22 Mozambique > 6 months > 6 months (ii) 8%, 10% & 15% 8% 5%
23 Namibia > 6 months > 6 months (ii) 5% & 10% 10% 5%
24 Nepal > 6 months > 6 months (ii) 5%, 10% & 15% 10% & 15% 15%
25 Oman > 6 months (iv) Exempt Exempt Exempt
26 Pakistan > 6 months (iv) 10% 10% 12.5%
27 Rwanda > 6 months > 6 months 10% 10% 10%
28 People’s Republic of Bangladesh >12 months > 12 months 10% normal rate normal rate
29 Senegal > 9 months > 9 months (i) Exempt Exempt Exempt
30 Seychelles > 12 months > 6 months (ii) Exempt Exempt Exempt
31 Singapore > 9 months (iv) Exempt Exempt Exempt
32 South Africa > 12 months > 6 months (ii) 5% & 10% 10% 5%
33 Sri Lanka > 6 months > 6 months (ii) 10% & 15% 10% 10%
34 State of Qatar > 6 months > 6 months (ii) Exempt Exempt 5%
35 Swaziland > 6 months > 6 months(ii) 7.5% 5% 7.5%
36 Sweden (New) > 12 months (iv) 0% & 15% Exempt Exempt
37 Thailand > 6 months > 6 months (ii) 10% 10% & 15% 5% & 15%
38 Tunisia > 12 months (iv) Exempt 2.5% 2.5%
39 Uganda > 6 months > 4 months (ii) 10% 10% 10%
40 United Arab Emirates > 12 months > 12 months Exempt Exempt Exempt
41 United Kingdom > 6 months (iv) 10% & 15% Same rate as under domestic law 15%
42 Zimbabwe > 6 months (iv) 10% & 20 % 10% 15%
43 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.

Investors Europe can offer a Turnkey Solution for you to set up your Offshore Funds:

Through its extensive network of trusted partners including lawyers, business leaders and fund managers, Investors Europe can help you establish your fund in Mauritius so that you can start trading immediately with a turnkey solution.

More Details on the Advantages the Republic of Mauritius Offers :

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