Tax Benefits in Mauritius: The Ultimate Guide 2024
May 30, 2023
This article looks at the tax benefits in Mauritius. If tax reduction is your goal, Mauritius may not be the first country that comes to mind, but with a low corporate tax rate, no capital gains tax, and other benefits, it could still be a jurisdiction worth looking into.
Talk to us about becoming a Nomad Capitalist client and we can help you protect your assets, safeguard your financial future or get impartial, actionable advice on estate planning. Keep reading to learn more about the benefits and requirements of Tax in Mauritius Benefits.
Mauritius Country Overview
You’ll find the African island of Mauritius in the Indian Ocean. Its nearest neighbor is Madagascar, 500 miles to the west. The Mauritian capital is Port Louis, and the estimated population of the island is approximately 1,235,000.
Mauritius – Economy
Previously reliant on sugar exports, Mauritius now has a more diversified economy. These include financial services and tourism, resulting in a higher degree of foreign investment.
Tax in Mauritius Benefits
Mauritius applies some of the lowest tax rates in the world.
The corporate income tax rate is 15%. This applies to dividends from foreign companies engaged in business activities with Mauritius and processing activities.
There is no tax on capital gains or dividends of companies headquartered in Mauritius. If a company exports goods, they are taxed at the low rate of 3%. Regarding dividends, they are exempt from withholding tax. However, interest and royalties are subject to a 15% withholding tax.
So overall, Mauritius offers some decent tax benefits for those looking to incorporate overseas and gain easy access to Africa’s emerging markets.
Plus, there are other perks, such as the Premium Investor Certificate, issued by the Economic Development Board to companies investing at least MUR 500 million (around $10.5 million).
Under any enactment, you will receive rebates, exemptions, and preferential rates for taxes, duties, fees, charges, and levies.
If you are looking for ways to legally reduce your taxable income but are unsure which zurisdiction suits you best, talk to us and get advice. As a Nomad Capitalist client, we’ll help you find the best solution for your specific needs.
Tax in Mauritius Requirements
The 1995 Income Tax Act and the 1996 Income Tax Regulations constitute the main income tax relevant legislation in Mauritius.
Personal Income Tax
A resident in Mauritius is liable to pay tax on their worldwide income, while a non-resident is liable to tax on income derived from sources in Mauritius.
Individuals earning an annual net income of up to MUR 700,000 will encounter personal income tax rates of 10%. This income tax rate will increase to 12.5% if their yearly net income stays under MUR 975,000.
But if their basic salary exceeds MUR 975,000, it will be taxed at 15%, and the Solidarity Levy will be added, if applicable.
Corporate Income Tax
Companies based in Mauritius that are part of multinational enterprises making over €750 million per year must pay a minimum top-up tax to ensure they are taxed at the minimum global rate of 15%. This tax only applies to their domestic income.
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.
Tax in Mauritius Conclusion
A Mauritian resident corporation and individual are liable to tax on their worldwide income. In contrast, a non-resident corporation or individual is liable to tax on any income derived from sources in Mauritius.
The Mauritian system of taxation is a credit system. They apply for a foreign tax credit on any income sourced outside Mauritius.
For tax purposes, maintaining a place of central management overseas makes a lot of sense. But you might get more for your money’s worth establishing non-resident companies in alternative jurisdictions.
If you’re interested in potentially using an offshore strategy, we can help you decide whether it’s a good choice for you and enable you to go where you’re treated best.
Tax in Mauritius FAQ
Yes. Suppose you or your company derive income from sources within Mauritius. In that case, you are liable to pay Mauritian income tax on such income, whether or not you or your company are resident in Mauritius.
No. There is no tax on capital gains in Mauritius. So as you know, certain transactions will be taxed as ordinary business profit instead of capital gains.
For tax purposes, maintaining a place of central management overseas makes a lot of sense. But you might get more for your money’s worth establishing non-resident companies in alternative jurisdictions.
We can help you with much more than tax reduction. Our holistic strategies cover everything from Citizenship by Decent to offshore gold storage.
Contact Nomad Capitalist today to learn more about how we can help you reach new heights in wealth and freedom.
Get Tips to Reduce Taxes and Build Freedom Overseas
Sign up for our Weekly Rundown packed with hand-picked insights on global citizenship, offshore tax planning, and new places to diversify.
Expatriation Tax Planning for Citizens Leaving The US
‘The two hardest things to say in life are hello for the first time and goodbye for the last.’ American author Moira Rodgers could have been discussing renouncing US citizenship when she wrote those words. At face value, her words point out that starting afresh and cutting old ties are complicated, tricky moments in life. […]
Read more
Five Low-Tax Countries in Latin America
It’s hard to put a value on personal freedom. Perhaps that’s why so many people love Latin America’s lifestyle and vibe. With its proximity to North America and shared experiences, the personal freedoms on offer in Latin America are in increasingly stark contrast to the government overreach that has come to characterise its northern neighbour. […]
Read more
3 Ways to Pay Lower Taxes as a US Citizen
Whether you agree with Donald Trump or not, even the most ardent patriot or the most dissenting liberal can acknowledge that the United States may no longer be considered great. The US is still a vast, diverse and globally significant power, but with wealth disparity at an all-time high and division continuing to grow, the […]
Read more
