Tax burden?

Mauritius has some imaginative ways to lighten your tax load...but before you make any decisions be sure to get professional advice.

The Basics:

• Company Tax rate is 15%. 
• GB1 companies can claim a deduction of up to 100% for foreign taxes paid, or without proof, up to 80% for deemed foreign taxes paid.  The effective tax rate is thus reduced to 3% at worst.  This rate can be further reduced if income is exempt from tax such as dividends from tax resident companies or profits derived from trading in securities.
• GB2 Companies do not pay tax in Mauritius.
• Resident Trusts are taxed as Companies (15%) or as GB1 Companies if they have a GB1 license issued by the Financial Services Commission.
• Non Resident Trusts are not taxed.

In More Detail:

GB1 Companies and Tax Resident Trusts

• All GB1 Companies and Resident Trusts are governed by the  Income Tax Act of 1995 and are taxed at 15% although foreign tax credits can reduce this to zero.  Resident trusts must have a GB1 license to qualify for this incentive.

Foreign Tax Credits applicable to the Tax Act of 1995

• Taxes paid by GB1 Companies in other countries may be deducted from tax payable in Mauritius. The credit is only usable in the year that it is incurred and may not exceed the total tax due in Mauritius.
• A credit of 80 percent can be claimed as foreign taxes deemed to have been paid.  The effect of this deduction is to provide a net rate on taxable income of 3%.

Capital Gains

• There is no capital gains tax in Mauritius.

Download the following Documents:

The Income Tax Act 1995 Word

The Income Tax (Foreign Tax Credit) Regulations 1996 Word