Corporation tax is levied at the rate of 15%.
Global Business Category 1 (GBC1) companies are entitled to a foreign tax credit equivalent to the higher of 80% of the Mauritius tax chargeable or the actual tax suffered abroad in respect of the foreign-source income. This makes the effective tax rate equal to 3%.
Global Business Category 2 (GBC2) companies incorporated are exempt from income (but are not considered Mauritian tax residents for tax treaty purposes.
Alternative Minimum Tax
When the normal tax payable for a year is less than 7.5% of a company's book profit, then the company is required to pay an Alternative Minimum Tax (AMT). The AMT is equal to the lower of 7.5% of book profit or 10% of dividends declared in respect of that year.
Book profit excludes dividends received from resident companies, profit/loss on disposal of fixed assets and profit/loss from sale of securities.
The Alternative Minimum Tax does not apply to Type 1 Global Business Companies (GBC1), companies which have not declared any dividend, companies which are exempt from the payment of any tax and companies when when the 10% of dividends declared is less than the normal tax payable.