Mauritius runs a self-assessment system. A resident of Mauritius is taxable on worldwide income, except an individual whose foreign source income is taxable only if it is remitted to Mauritius. A resident company is chargeable to tax in respect of its worldwide
Corporations resident in Mauritius are subject to tax on their worldwide income. A non-resident corporation is liable to withholding tax rules, subject to any applicable tax treaty provisions, on any Mauritian source of income.
Corporations are liable to income tax on their net income, at a flat rate of 15%. Companies engaged in the export of goods are liable to income tax at the rate of 3% on the net income attributable to that export calculated using a prescribed formula.
Mauritius operates a credit system of taxation. The Mauritius income tax provisions provides for a foreign tax credit on any foreign source income which have been declared in Mauritius and which have been subjected to a foreign tax.
Global Business Category 1 (GBC1) companies are liable to tax at the rate of 15%. However, they are entitled to a foreign tax credit equivalent to the higher of 80% of the Mauritius tax chargeable or the actual tax suffered abroad in respect of foreign-source income. The maximum effective tax rate is therefore 3%.
Global Business Category 2 (GBC2) companies incorporated under the laws of Mauritius are exempt from income tax and are not tax residents for treaty purposes.
Newly registered companies are eligible to 8 year tax holiday if they are involved in the following trading activities/sectors:
- ICT and other Export Services, preferably engaged in activities such as,mobile applications development, websites development and software development.
- Manufacturing (production, transformation and processing, excluding
trading, assembly and service activities). - Aqua-culture and other value-added Ocean economy related activities.
- Renewable and Green Energy (production, transformation and
processing, excluding trading, assembly and service activities). - Handicraft (locally manufactured)
- Bio-farming and other value-added Agri-Business such as:
- Crop production in open-field/under sheltered farming systems,to include perennial/non-perennial crops (fruits, ornamentals,spices, medicinal plants)
- Sheltered aquaponics/hydroponics
- Bee-Keeping (production of honey, bee wax and other associated products)
- Breeding of farm animal: Cattle, goats, sheep, pig, rabbit
- Production of breeding stock
- Rearing of birds for meat and eggs: Chicken, duck, turkey,geese
- Support services to Crop/Livestock Production (installation/rehabilitation of greenhouses, maintenance of orchards,spraying, land preparation, provision of mechanical facilities for harvesting, pruning of fruit trees, cleaning of livestock farm)
- Production of planting material (Fruits, vegetables. ornamentals excluding turf and lawn)
- Post-harvest activities (cleaning, trimming, grading, disinfection,packaging for market, including provision of ripening services)
- Transport and marketing of agricultural produce
- Silviculture, including forest tree nurseries
- Fresh water and marine aquaculture
- Processing and manufacture of food products (fish,crustaceans, meat, dairy, vegetables, fruits, spices)
- Distillation of essential oils
- Manufacture of animal feeds
- Agro-Tourism
- Production of fodder
Other additional conditions may apply. Contact Oregon Consulting to know more