Advantages

Strategically located in the ‘golden triangle’ connecting Asia, Africa and Australia, Mauritius is the converging point of global financial civilizations – a place where one can feel the cosmopolitan pulse of the world. Situated in a very appropriate time zone (GMT+4) business activities can be conducted with the Far East in the morning, Europe in the early-afternoon and the US in the late-afternoon.

Mauritius is recognized by international organisations for continuous improvement in its friendly doing business regime. The country is today acclaimed as a leading investment destination and has received several accolades in terms of ease of doing business and good governance by the World Bank and rating agencies such as the Mo Ibrahim index where Mauritius has come first for the last 5 years in Africa.

Mauritius advantages
  • Impressive track record, political stability and more than 3 decades of sustained economic   growth
  • Secure investment location with established rule of law
  • Freest and most business-friendly country in Africa
  • Peaceful, multiethnic with a unique lifestyle in a blend of cultures
  • Flexible, bilingual (English/French) and skilled   workforce
  • Investment-friendly regulatory regime
  • Open to foreign investors and talents
  • Ocean State with one of the largest Exclusive Economic Zones in the world
  • Preferential market access to Africa, Europe and the USA
  • State-of-the-art infrastructure
  • Convenient time zone (GMT +4)
Fiscal incentives
  • AC are tax exempt.
  • GBC are subject to low corporate tax (3% maximum).
  • No withholding tax on remittance of branch profits.
  • No withholding tax on interest, royalties and dividends.
  • No capital gains tax.
  • 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, wealth or gift taxes.
  • No stamp duties, registration duties and levy.
  • Zero rated Value Added Tax for global business transactions.
Partial Exemption Regime (PER)

A partial exemption system was introduced with effect from 01 January 2019 whereby companies deriving specific types of income may benefit from 80 % tax exemption subject to meeting conditions of substance. The PER only applies if the company carries on its Core Income Generating Activities (“CIGA”) in Mauritius. The CIGA applies to any Mauritian resident company. Therefore, it is also a legal requirement for a Global Business Company. The CIGA applies to the company, notwithstanding the fact that the company may not apply the Partial Exemption Regime. The company carries on its CIGA in Mauritius by:

  • employing, directly or indirectly, an adequate number of suitably qualified persons to conduct its CIGA.
  • having a minimum expenditure proportionate to its level of activities.

Activities which qualify as CIGA will depend on the business activity of a company. CIGA may include agreeing funding terms, identifying and acquiring assets to be leased, setting the terms and duration of any leasing, monitoring and revising any agreements and managing any risks.

The exemption will be granted to all tax resident companies in Mauritius, except banks, with the following income:

  • Income attributable to a foreign permanent establishment which a resident has in a foreign country
  • Foreign dividend derived by the company
  • Income from Collective Investment Scheme (CIS) / Closed-End Fund (CEF) / CIS Manager / CIS Administrator / Adviser / Asset Manager approved by the Financial Services Commission (FSC).
  • Interest income derived by a company other than banks
  • Income derived by companies engaged in ship and aircraft leasing other than banks
  • Reinsurance / Reinsurance brokering activities.
  • Leasing & provision of international fibre capacity.
  • Sale, financing, arrangement, asset management of aircraft and its spare parts and aviation advisory services related thereto.