Tax laws Mauritius
Mauritius offers a competitive and transparent tax environment, aiming to attract both local and international businesses. The Mauritius Revenue Authority (MRA) oversees tax collection and enforcement, operating under the Ministry of Finance and Economic Development.
1. Corporate Income Tax:
Standard Rate: A flat rate of 15% applies to the net income of corporations.
Export Activities: Companies engaged in exporting goods benefit from a reduced tax rate of 3% on chargeable income derived from exports, calculated based on a prescribed formula.
Foreign Tax Credits: Mauritius utilizes a credit system, allowing corporations to claim foreign tax credits on foreign-source income that has been taxed abroad, provided the foreign tax is similar to Mauritian tax.
2. Personal Income Tax:
Residents: Individuals residing in Mauritius are taxed on their worldwide income. However, only income received in Mauritius from outside the country is subject to taxation.
Non-Residents: Non-resident individuals are taxed solely on income derived from Mauritius sources.
3. Dividend Taxation:
- Resident Companies: Dividends paid by resident companies are exempt from income tax. Foreign dividends are taxable, but taxpayers can claim credits for underlying and withholding taxes paid abroad.
4. Capital Gains Tax:
- No Capital Gains Tax: Mauritius does not impose a tax on capital gains, making it attractive for investors.
5. Withholding Taxes:
- Interest Payments: Interest paid to non-residents is subject to a withholding tax of 15%.
6. Transfer Pricing Regulations:
- Arm's Length Principle: While Mauritius does not have formal transfer pricing legislation, the Income Tax Act requires that transactions between related parties be conducted at arm's length. The tax authorities may adjust a company's chargeable income if transactions are not deemed to be at arm's length.
7. Tax Incentives and Holidays:
- Sector-Specific Incentives: Mauritius offers various tax incentives, including tax holidays and exemptions, to promote investment in specific sectors such as manufacturing, tourism, and technology.
8. International Tax Agreements:
- Double Taxation Treaties: Mauritius has established a network of double taxation avoidance agreements with numerous countries, enhancing its appeal as an international business hub.
9. Tax Administration:
- Mauritius Revenue Authority (MRA): The MRA is responsible for the assessment, collection, and enforcement of taxes in Mauritius, ensuring compliance with tax laws and regulations.
Note: Tax laws and regulations are subject to change. For the most current information, it is advisable to consult the Mauritius Revenue Authority or seek professional tax advice.
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