Taxation advantages in Mauritius
Fiscal policy -Mauritius
Mauritius offers a low tax jurisdiction with an investor-friendly environment to encourage both local and foreign companies to set up a business on the island.
The Fiscal Policy includes:
- Harmonised corporate and income taxes at 15%
- No capital gains tax
- No withholding tax on interest and dividends
- Exemption from customs duty on equipment
- Free repatriation of profits, dividends and capital
The Mauritius Revenue Authority is the agency responsible for collecting Corporate Tax, Income Tax and VAT in Mauritius.
The fiscal year runs from 1st July to 30th June. Payment should be done either at the Mauritius Revenue Authority counters, via electronic payment or by sending a cheque drawn to the MRA by post.
The tax rate is as follows:
- Corporate tax:15%
- Income tax (personal tax): 15%
- Value-Added Tax (VAT): 15%
- Corporate Social Responsibility (CSR tax): 2% on book profits
- Land Transfer tax: 5%
Non-citizens (Property Restriction) Act: Amendment
To further open the economy, the Non-citizens (Property Restriction) Act has been amended to allow non-citizens, registered with the BOI, to acquire apartments and business spaces in buildings, subject to security clearances.
Acquiring a property for business purposes
Non-citizens can acquire or lease immovable property for business purposes.
The Non-Citizens (Property Restriction) Act regulates foreign ownership of land and buildings. It applies to everyone who is not a citizen of Mauritius.
A non-citizen, with an authorisation from the Board of Investment, can acquire or lease an immovable property for business purposes.
The immovable property can be acquired by a company, trust or partnership or in the non-citizen’s own name.
Authorisations are granted when the business activity is for:
(a) The development of high activity commercial use building including, but not limited to, shopping mall, office building or warehouse, for own use, sale, rental or lease;
(b) The development of residential properties developed under the Property Development Scheme; and
(c) Any other activity carried out for reward, gain or profit but excluding the acquisition for resale or lease or rental of any bare land or serviced land.
Work & Live
The Non-Citizens (Property Restriction) Act has been amended on 20 December 2016 to allow foreigners to purchase apartments in condominium developments of at least two levels above ground (G+2) with the prior approval of the Board of Investment.
The amount payable for the acquisition of an apartment must not be less than Rs 6 million or its equivalent in any other freely convertible foreign currency.
Any non-citizen, with or without an occupation permit, residence permit, permanent residence permit, may acquire apartments.
Thus, there is no restriction for non-citizens who wish to acquire:
-a residential unit developed under the IRS, RES and PDS
-a residential unit developed in a smart city
-an apartment located in a building comprising at least two floors above the ground floor.
Source: B.O.I (http://www.investmauritius.com/doing-business/paying-taxes)
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