• Mauritius Tax System

  • TAX RESIDENCY

    Tax Residency

    A company is considered to be tax resident in Mauritius if it is incorporated in Mauritius or its central management and control is exercised in Mauritius.

    Type 2 Global Business Companies (GBC2) are not considered to be tax residents of Mauritius for double tax treaty purposes.

    Taxable Basis

    Mauritius tax resident companies are taxed on their worldwide income.

    Non-Mauritius tax resident companies are taxed on income generated in the Mauritius.

  • TAX ADMIN

    Taxable Period

    The taxable period for a company in Mauritius is its accounting year or the calendar year.

    Tax Returns

    Every company needs to submit an annual tax return within 6 months from the end of the tax year.

    Consolidated tax returns are not allowed in Mauritius.

    Tax Assessments

    The Tax Authorities may issue a tax assessment within 6 years from the end of the year in which the tax return is submitted.

  • CORPORATION TAX

    Corporation Tax

    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.

  • DIVIDENDS

    Dividends from Foreign Investments

    Dividend income of a GBC1 company from foreign investments is taxable at the effective rate of 3%.

    Dividend income of other companies from foreign investments is taxable at 15%, but credit for underlying tax and foreign withholding tax is generally available.

    Dividends from Local Investments

    Dividend income from local investments is not subject to tax in Mauritius.

    Withholding Tax on Dividends

    Mauritius does not impose any withholding tax on dividend payments made to local companies or foreign companies.

  • INTEREST

    Interest Income

    Interest income from abroad of a GBC1 company is taxable at the effective rate of 3%.

    Interest income of other company types is taxable at 15%.

    Interest Expense Deductibility

    Interest expense is generally tax-deductible as a business expense if incurred wholly and exclusively for the purposes of the trade.

    Withholding Tax on Interest

    Interest payments by a Mauritius company to foreign recipients is subject to a withholding tax of 15%. Interest payments by a GBC1 company to foreign recipients is not subject to withholding tax.

  • ROYALTIES

    Royalty Income

    Royalty income from abroad of a GBC1 company is taxable at the effective rate of 3%.

    Royalty income of other company types is taxable at 15%.

    Royalty Expense Deductibility

    Royalty expense is generally tax-deductible as a business expense if incurred wholly and exclusively for the purposes of the trade.

    Withholding Tax on Royalties

    Royalty payments made to local recipients carry a 10% withholding tax.

    Royalty payments by a Mauritius company to foreign recipients is subject to a withholding tax of 15%. Royalty payments by a GBC1 company to foreign recipients is not subject to withholding tax.

  • TAX LOSSES

    Ordinary Tax Losses

    Ordinary tax losses can be carried forward for 5 years, provided that there is no ownership change of more than 50% between the loss-making year and the year of claim.

    Ordinary tax losses cannot be carried back.

    Group Relief

    Group relief is not available in Mauritius.

  • CAPITAL GAINS

    Disposal of Shares by Foreign Shareholder

    The profit on disposal of a Mauritian company by its foreign individual shareholder is exempt from tax in Mauritius.

    Capital Gains

    No tax is imposed on capital gains except on transactions in land and immovable property. The sale of shares in companies held for more than 6 months is taxed as ordinary income under corporation tax.

    Capital Losses

    Capital losses are not allowed since capital gains are not tax-deductible.

  • PARTNERSHIPS

    Partnership Profits

    Partnerships are treated as transparent entities for tax purposes, which means that their profits are taxed directly in the hands of each partner.

  • BRANCHES

    Branch Profits

    A Branch is treated in the same manner as other types of companies in Mauritius.

    There is no tax in Mauritius on the remittance of the profit of a Mauritian Branch to its foreign head office.

  • STAMP DUTY

    Stamp Duty

    Stamp duty is levied on every document at the time of registration at rates between MUR 25 to MUR 1,000.

  • CAPITAL DUTY

    Capital Duty

    There is no capital duty on the issue of shares in Mauritius.

  • VAT

    VAT Taxable Transactions

    VAT is levied on the supply of goods and services in Mauritius.

    VAT Standard Rate

    The standard rate of VAT is 15%.

    VAT Exempt Transactions

    Certain banking services, rice, bread, butter, medical services, hospital services, dental services and sales or transfers of immovable property are exempt from VAT in Mauritius.

    VAT Registration Threshold

    The registration threshold for VAT purposes in Mauritius is MUR2million.

    VAT Filing & Payment

    Filing of VAT returns and the payment of VAT liability is made every 1 or 4 months.