Companies are normally taxed at a rate of 15% (exports oriented companies at 3%). A small enterprise may opt to pay a presumptive tax at 1% of its income, and it must do so on or before the due tax year date for filing its income tax return. Where a small enterprise has chosen to pay presumptive tax, it shall not be permitted to claim any deduction.
Companies must set aside 2% of their taxable income as a corporate social responsibility (CSR) fund by law. They also need to submit at least 75% of this fund to the tax authorities. Apart from this, a new corporate climate responsibility levy of 2% on chargeable income has been introduced for companies with a turnover exceeding Rs 50m as from 01 July 2024 (Budget 2024-2025).
There is no tax on capital gains in Mauritius. But there is a tricky part to it !
The partial exemption rate is 80% for Collective Investment Schemes and Closed End Funds means they are being effectively taxed at 3%.
Mauritius also introduced the Qualified Domestic Minimum Top up Tax (QMDTT) under the local law but a timeline for implementation is yet to come.
For purposes of the Common Reporting Standard, a reportable entity also includes entities that are typically tax transparent (for example a societé). For reporting purposes, an entity will be held to be ‘tax resident’ in Mauritius even if it is not a taxable person. For example a societé having its seat or siège in Mauritius will be ‘tax resident’ in Mauritius even though the taxable persons are the associates rather than the societé itself.
A company incorporated in Mauritius shall be treated as non-resident if it is centrally managed and controlled outside Mauritius.
Residence
Whether a person is resident for tax purposes in Mauritius usually depends on how many days he spends in Mauritius in a tax year which is from 1 July to 30 June of the following year. An individual is automatically resident if: ➢ his domicile is in Mauritius and he does not have a permanent place of abode outside Mauritius. or ➢ he spends 183 or more days in Mauritius in the tax year; or ➢ he spends 270 or more days in Mauritius in the tax year and in the 2 preceding tax years.
The term “resident” when used in the context of the CRS means resident for tax purposes. The definition of residence varies depending on the type of entity. Residence is defined in Section 73 of the Income Tax Act 1995 as follows – (a) A company. A resident company is one which (i) is incorporated in Mauritius; or (ii) has its central management and control in Mauritius; (b) A société A resident société – (i) means a société which has its seat or siège in Mauritius; and (ii) includes a société which has at least one associate or associé or gérant resident in Mauritius; (c) A trust. A resident trust is one – (i) which is administered in Mauritius and where a majority of the trustees are resident in Mauritius; or (ii) where the settlor of the trust was resident in Mauritius at the time the instrument creating the trust was executed; (d) A foundation A resident foundation is a foundation which (i) is registered in Mauritius; or (ii) has its central management and control in Mauritius; (e) Other associations Any other association or body of persons is resident in Mauritius if the association or body of persons is managed or administered in Mauritius. Thus, any person meeting the conditions specified in Section 73 of the Income Tax Act and applicable to that person will be considered resident for CRS purposes.
The above notes are for general information purposes only and should not be acted upon without professional advice.
Companies & Trusts
Companies are normally taxed at a rate of 15% (exports oriented companies at 3%). A small enterprise may opt to pay a presumptive tax at 1% of its income, and it must do so on or before the due tax year date for filing its income tax return. Where a small enterprise has chosen to pay presumptive tax, it shall not be permitted to claim any deduction.
Companies must set aside 2% of their taxable income as a corporate social responsibility (CSR) fund by law. They also need to submit at least 75% of this fund to the tax authorities. Apart from this, a new corporate climate responsibility levy of 2% on chargeable income has been introduced for companies with a turnover exceeding Rs 50m as from 01 July 2024 (Budget 2024-2025).
There is no tax on capital gains in Mauritius. But there is a tricky part to it !
The partial exemption rate is 80% for Collective Investment Schemes and Closed End Funds means they are being effectively taxed at 3%.
Mauritius also introduced the Qualified Domestic Minimum Top up Tax (QMDTT) under the local law but a timeline for implementation is yet to come.
For purposes of the Common Reporting Standard, a reportable entity also includes entities that are typically tax transparent (for example a societé). For reporting purposes, an entity will be held to be ‘tax resident’ in Mauritius even if it is not a taxable person. For example a societé having its seat or siège in Mauritius will be ‘tax resident’ in Mauritius even though the taxable persons are the associates rather than the societé itself.
A company incorporated in Mauritius shall be treated as non-resident if it is centrally managed and controlled outside Mauritius.
Residence
Whether a person is resident for tax purposes in Mauritius usually depends on how many days he spends in Mauritius in a tax year which is from 1 July to 30 June of the following year. An individual is automatically resident if: ➢ his domicile is in Mauritius and he does not have a permanent place of abode outside Mauritius. or ➢ he spends 183 or more days in Mauritius in the tax year; or ➢ he spends 270 or more days in Mauritius in the tax year and in the 2 preceding tax years.
The term “resident” when used in the context of the CRS means resident for tax purposes. The definition of residence varies depending on the type of entity. Residence is defined in Section 73 of the Income Tax Act 1995 as follows – (a) A company. A resident company is one which (i) is incorporated in Mauritius; or (ii) has its central management and control in Mauritius; (b) A société A resident société – (i) means a société which has its seat or siège in Mauritius; and (ii) includes a société which has at least one associate or associé or gérant resident in Mauritius; (c) A trust. A resident trust is one – (i) which is administered in Mauritius and where a majority of the trustees are resident in Mauritius; or (ii) where the settlor of the trust was resident in Mauritius at the time the instrument creating the trust was executed; (d) A foundation A resident foundation is a foundation which (i) is registered in Mauritius; or (ii) has its central management and control in Mauritius; (e) Other associations Any other association or body of persons is resident in Mauritius if the association or body of persons is managed or administered in Mauritius. Thus, any person meeting the conditions specified in Section 73 of the Income Tax Act and applicable to that person will be considered resident for CRS purposes.
The above notes are for general information purposes only and should not be acted upon without professional advice.