Companies

Companies are the most common corporate form. Companies can be either public or private, and they may be limited by shares, limited by guarantee or limited by shares and guarantee.

If such entities are held or ultimately controlled by non-residents and propose to conduct business principally outside Mauritius, they must apply for a global business licence from the Financial Services Commission in Mauritius.

The main characteristics of a corporation holding a global business licence are that it must at all times:

• carry out its core income-generating activities in, or from, Mauritius, as required under the Income Tax Act 1995;
• be managed and controlled from Mauritius; and
• be administered by a management company licensed by the Financial Services Commission in Mauritius.

There is no legal definition of “management and control”, but in determining whether a company holding a global business licence is managed and controlled in Mauritius, the Financial Services Commission in Mauritius will, amongst other things, have regard to whether the company:

• has at all times at least two directors, resident in Mauritius, of sufficient calibre to exercise independence of mind and judgement;
• maintains, at all times, its principal bank account in Mauritius;
• keeps and maintains, at all times, its accounting records at its registered office in Mauritius;
• prepares its statutory financial statements and causes such financial statements to be audited in Mauritius; and
• provides for meetings of directors to include at least two directors from Mauritius.

A company holding a global business licence that is centrally managed and controlled in Mauritius is tax resident in Mauritius and, as such, may take advantage of double taxation avoidance agreements in place between Mauritius and other countries. If the company wishes to be certified as tax resident in Mauritius in respect of an income year, it may apply to the Mauritius Revenue Authority (MRA) for a tax residence certificate.

However, entities that propose to conduct business principally outside Mauritius and have their central management and control outside of Mauritius are required to apply for an authorisation from the Financial Services Commission in Mauritius. Entities holding an authorisation are not tax resident in Mauritius.

Limited Partnerships

A limited partnership holding a global business licence can opt under the Income Tax Act 1995 to be liable to tax, but in the absence of any such election, will be treated as being tax-transparent and will therefore not be taxable in Mauritius.

A limited partnership that is fiscally transparent will not be eligible to take advantage of any double taxation avoidance agreements to which Mauritius is a party.

Trusts

A trust is created under the Trusts Act 2001. It is relatively easy to establish, as registration, incorporation and corporate filings are not required. An instrument in writing is required containing certain information (including the trust property, name of the trustee, objects of the trust and beneficiaries/class of beneficiaries).

A trust can have a maximum of four trustees, of whom one must be a qualified trustee. A qualified trustee is a management company or such other person resident in Mauritius as may be authorised by the Financial Services Commission to provide trusteeship services.

The aforementioned entities are taxed as separate legal entities.

Sociétés (partnerships), limited partnerships and limited liability partnerships are the commonly used tax transparent entities in Mauritius.

While sociétés are commonly used in commercial and property transactions at the domestic level, limited partnerships and limited liability partnerships are used as flexible investment vehicles in Mauritius by foreign investors to structure their investments from foreign jurisdictions.

Companies

A company is tax resident in Mauritius if it is incorporated in Mauritius or has its central management and control in Mauritius. Note, however, that a company incorporated in Mauritius shall be treated as non-resident if it is centrally managed and controlled outside Mauritius

Trusts

A trust is treated as being tax resident in Mauritius if it is administered in Mauritius and a majority of the trustees are resident in Mauritius, or if the settlor of the trust was resident in Mauritius at the time the instrument creating the trust was executed.

Foundations

A foundation is tax resident in Mauritius if it is registered in Mauritius or has its central management and control in Mauritius.

Transparent Entities

A société or partnership is treated as a tax resident entity if its seat (siège) is in Mauritius and if it has at least one associate/partner (associé) or managing (gérant) resident in Mauritius.

Subject to applicable credits and exemptions, incorporated businesses are generally taxed at the rate of 15%. Companies engaged in the export of goods or manufacturing activities in a freeport zone are taxed at the rate of 3%.

Partial Exemption Regime

Under this regime, subject to fulfilling certain prescribed substance requirements, a company can benefit from a partial exemption of 80%, or 95% as applicable, on certain specified types of income. This would reduce the tax rate on these specified incomes to 3%.

Foreign Tax Credit

Where the incorporated business has derived income from abroad, it may claim tax credit in respect of foreign tax paid against income tax payable in Mauritius on that foreign source income, provided the tax suffered abroad can be evidenced.

Underlying Tax Credit

Where a dividend is paid by a company that is not resident in Mauritius to a Mauritius-resident company that owns, directly or indirectly, not less than 5% of the share capital of the company paying the dividend, the credit allowed will, in addition to any foreign tax charged on the dividend, whether directly or by deduction, include foreign tax charged on the income out of which the dividend was paid, such as withholding tax at the source country level, corporation tax and any other tax on the dividends paid.

Transparent entities are not taxed in Mauritius, and their associates are taxed on their share of income from those entities.

Under the Income Tax Act 1995, income tax is levied on the chargeable income of an incorporated business. This refers to the net income of the entity and is calculated as follows:

chargeable income = gross income minus allowable deductions

“Gross Income” refers to all income derived by an entity other than income that is exempt from income tax under the Income Tax Act 1995. “Allowable deductions” are those expenditures, losses or allowances that are classified as deductible under the Income Tax Act 1995.

Taxable profits are generally based on “accounting profits”, using the International Financial Reporting Standards (IFRS) as the accounting standard.

The income tax system in Mauritius operates on an accrual basis. However, an entity (excluding any entity holding a global business licence and non-resident sociétés) that has an annual turnover not exceeding MUR10 million (ie, a small enterprise) may generally apply to the tax authorities for the net income of its business to be computed on a cash basis instead of an accrual basis.

Special incentives relating to technology investments include the following:

• if an entity incurs any qualifying expenditure directly related to their existing trade or business, it may, in the income year in which the qualifying expenditure was incurred, deduct twice the amount of the expenditure, provided the research and development is carried out in Mauritius and provided it has not already claimed an annual allowance in respect of its deduction under Section 24 of the Income Tax Act 1995; and
• if an entity incurs any qualifying expenditure that is not directly related to their existing trade or business, the tax authorities may allow a deduction of the expenditure in the income year in which the expenditure was incurred.

“Qualifying expenditure” means any expenditure relating to research and development and includes expenditure incurred on innovation, improvement or development of a process, product or service and staff costs, consumable items, computer software directly used in research and development and subcontracted research and development.

Income of a company set up on or after 1 July 2017 and involved in innovation-driven activities for intellectual property assets developed in Mauritius, and income derived by a company from intellectual property assets developed in Mauritius on or after 10 June 2019, is tax-exempt for a period of eight income years, counting from the income year in which the company started its innovation-driven activities. This exemption shall be granted provided that the company satisfies such conditions as may be prescribed.

This exemption shall be available only to a company that carries out research and development leading to the creation of a patent, copyrighted software or, only in relation to smaller companies, other intellectual property that is similar to an invention that could be patented.

The Partial Exemption Regime (see 1.4 Tax Rates) applies to all entities, including entities holding a global business licence, provided they fulfil the prescribed conditions.

Some other special incentives as provided under the Income Tax Act 1995 include the following:

• income derived from activities of a company holding a global headquarters administration licence is tax-exempt for a period of eight income years, counting from the income year in which the corporation was granted its licence; and
• income of a company with a global treasury activities licence or a global legal advisory services licence, issued on or after 1 September 2016 by the Financial Services Commission in Mauritius, is tax-exempt for a period of five income years counting from the income year in which the corporation was granted its licence provided that the income is derived from the activities covered under the licence and the company satisfies conditions of minimum employment and substance of activities, as specified by the Financial Services Commission of Mauritius.

If an entity has incurred a loss in a given income year when computing its net income for that year, it may deduct that loss. Subject to certain conditions, if the amount of loss cannot be fully relieved, the entity is entitled to claim that the unrelieved amount of the loss be carried forward and set off against its net income derived in the following five income years.

The time limit to carry forward the losses in the following five income years does not apply for the amount of loss attributable to annual allowance claimed in respect of capital expenditure incurred on or after 1 July 2006.

Deduction of expenditure on interest is allowed under the Income Tax Act 1995, provided that the expenditure is incurred in respect of capital employed exclusively in the production of income. The tax authorities may not allow deductions in respect of expenditure incurred as interest where the interest is:

• to a non-resident who is not chargeable for tax on the amount of the interest; or
• not likely to be paid in cash within a reasonable time.

There is no applicable information in this jurisdiction.

There are no capital gains taxes in Mauritius. Any gains realised by a non-resident or resident corporation on the disposal of its shares in a company shall not be liable to tax in Mauritius. However, where a transaction is in the nature of trade, any gains derived from that transaction may be assessed and taxed as income.

Land transfer tax shall apply on a transfer of shares in a company holding immovable property to the extent that such transfer results in a change in control.

Land transfer tax shall be levied at the rate of 5% on the value of the shares transferred or at the option of the transferor and transferee jointly, in such proportion as the number of shares transferred bears to the total number of shares issued by the company, without taking into account the number of shares, if any, issued to the transferee during the period of three years immediately preceding the date of transfer, on the open market value of the immovable property comprised in the assets of the company or on the value of the shares transferred, whichever is the lower.

Leasehold tax is also levied on the transfer of shares in a company that reckons among its assets any leasehold rights in state land at the rate of 20%. Leasehold tax is paid by the transferor and the transferee in equal proportion.

A registration duty of 5% is levied on any transfer of shares in any company or successive company that reckons among its assets any freehold or leasehold immovable property.

Registration duty shall be levied at the rate of 5% on the value of the shares transferred or at the option of the transferor and transferee jointly, in such proportion as the number of shares transferred bears to the total number of shares issued by the company, without taking into account the number of shares, if any, issued to the transferee during the period of three years immediately preceding the date of transfer, on the open market value of the immovable property comprised in the assets of the company or on the value of the shares transferred, whichever is the lower.

The transfer of shares in any company, the securities of which are quoted on the Official List of the Stock Exchange of Mauritius, and the transfer of shares in a company holding a global business licence that does not reckon among its assets any freehold or immovable property in Mauritius, are exempted from registration duty.       

Incorporated businesses must, on an annual basis, set up a corporate social responsibility fund equivalent to 2% of their chargeable income in the preceding year.

Incorporated businesses are also subject to a corporate climate responsibility levy of 2% of their chargeable income (if its annual turnover exceeds MUR50 million).

In respect of income derived from 1 July 2025 to 30 June 2028, every company, other than a bank, having (i) supplies exceeding MUR24 million in an accounting year or is required to be registered under the Value Added Tax Act, and (ii) chargeable income exceeding MUR24 million in an accounting year must pay to the MRA a fair share contribution of 5% (if it pays tax at 15%) or 2% (if it pays tax at 3%) of its chargeable income.

Most closely held local businesses operate in corporate forms.

There are no specific rules in Mauritius preventing individual professionals from earning income through corporate entities. Most closely held local businesses operate in corporate forms.

There are no specific rules preventing closely held corporations from accumulating earnings for investment purposes.

There are no capital gains taxes in Mauritius. Any gains realised by individuals on the disposal of shares in a closely held corporation are not liable to tax in Mauritius. However, where the nature of a transaction is characterised by trading activity, any gains derived from that transaction may be assessed and taxed as income.

There is no withholding tax on dividends paid by resident companies to individuals.

There are no capital gains taxes in Mauritius. Any gains realised by individuals on the disposal of shares in a publicly traded corporation are not liable to tax in Mauritius. However, where the nature of a transaction is characterised by trading activity, any gains derived from that transaction may be assessed and taxed as income.

Interest

Interest payable by any person, other than by a bank or non-bank deposit-taking institution under the Banking Act 2004, to any non-resident is subject to a withholding tax of 15%.

Interest payable to a non-resident not carrying on any business in Mauritius by a corporation holding a global business licence out of its foreign source income is not subject to withholding taxes.

There are no withholding taxes on interest paid to a Mauritius resident.

Dividend

There are no withholding taxes on dividends in Mauritius.

Royalties

Royalties payable to residents are subject to a withholding tax of 10%. Royalties payable to non-residents are subject to a withholding tax of 15%. Royalties payable to non-residents by a company out of its foreign source income are not subject to withholding taxes.

The local tax authority is known to enforce the legal provisions on withholding taxes.

Mauritius is a party to some 46 double taxation avoidance agreements. The primary tax-treaty countries in this regard are India, the People’s Republic of China, Singapore, South Africa and the United Kingdom.

Mauritius is also a party to a series of such agreements that await ratification or signature, or are still being negotiated.

Mauritius authorities do not usually challenge the use of treaties. However, it is to be noted that treaty benefits may not be allowed upon the application of the “principal purpose test” under the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the “Multilateral Convention”).

There is no specific transfer pricing legislation or guidance from the tax authorities in Mauritius, although Section 75 of the Income Tax Act 1995 sets out a requirement for transactions between related parties to be conducted on an arm’s length basis, meaning that the terms and pricing should be comparable to those that would have been agreed between independent parties under similar circumstances.

There is no presumption in Mauritius that the arm’s length principle should not apply to non-related parties, effectively meaning that all transactions must be conducted on an arm’s length basis in Mauritius. Companies engaging in such transactions will need to prepare and keep records as may be prescribed.

Related-party limited-risk distribution arrangements are subject to the arm’s length principle.

See 4.4 Transfer Pricing Issues. The local authorities are working towards implementing the OECD standards.

Following the Finance Act 2025, Section 75 of the Income Tax Act 1995 has been amended to require companies engaging in transactions within its scope to prepare and keep records as may be prescribed. Mauritius is preparing transfer pricing regulations at the present time.

There are no known international transfer pricing disputes being resolved through Mauritius’ double tax treaties and mutual agreement procedures (MAPs).

The local tax authorities have issued guidance notes on how taxpayers can request assistance from the competent authority in Mauritius to resolve disputes arising from taxation not in accordance with the relevant double taxation avoidance agreements. The International Taxation Section of the Large Taxpayers Department of the MRA is the unit responsible for providing assistance with respect to MAPs. 

There is no applicable information in this jurisdiction.

Local branches of non-local corporations are generally taxed on the income attributable to their Mauritian operations, whereas local subsidiaries of non-local corporations are subject to tax on their worldwide income. Both type of entities are taxed at a rate of 15%, with available credits and exemptions applied where relevant.

There are no capital gains taxes in Mauritius. Any gains realised by non-residents on the disposal of shares in local corporations are not liable to tax in Mauritius. However, where the nature of a transaction is characterised by trading activity, any gains derived from that transaction may be assessed and taxed as income.

There is no applicable information in this jurisdiction.

Formulas are not used to determine the income of foreign-owned local affiliates selling goods or providing services.

For the fees to qualify as an allowable deduction for the local affiliate, the expenses must have been incurred exclusively in the production of gross income of the local affiliate, and the transaction must have been conducted on an arm’s length basis.

There are no constraints imposed on any related-party borrowing. However, the related-party borrowing must be conducted on an arm’s length basis.

The foreign income of local corporations is taxed at the rate of 15%, subject to applicable exemptions. Local corporations may benefit from the partial exemption regime, or they may claim foreign tax credit on the foreign income by giving evidence of the foreign tax suffered to the authorities.

There is no applicable information in this jurisdiction.

Dividends are taxed at the rate of 15%, but local corporations may benefit from the partial exemption regime (if the local corporation meets the prescribed substance requirements); alternatively, they may claim foreign tax credit on the foreign income by giving evidence of the foreign tax suffered to the authorities.

There is no applicable information in this jurisdiction.

Mauritius introduced controlled foreign company (CFC) rules in 2019, and these rules apply to resident companies carrying on business through a CFC; the non-distributed income of the CFC arises from non-genuine arrangements put in place for the principal purpose of obtaining a tax benefit. This income is deemed to form part of the chargeable income of the resident company.

A non-genuine arrangement is an arrangement whereby a CFC would not own the assets or would not have taken on the risks that generate all, or part, of its income if it were not controlled by a company where the significant people functions that are relevant to those assets and risks are carried out and are instrumental in generating the controlled company’s income.

A CFC is a company that is not resident in Mauritius in which more than 50% of its total participation rights are held, directly or indirectly, by the resident company or together with its associated enterprises. The definition of a CFC includes a permanent establishment of the resident company.

The CFC rules do not apply to a CFC where, in an income year:

• accounting profits are not more than EUR750,000, and non-trading income is not more than EUR75,000;
• accounting profits amount to less than 10% of its operating costs for the tax period; or
• the tax rate in the country of residence of the CFC is more than 50% of the tax rate in Mauritius.

There is no applicable information in this jurisdiction.

Local corporations are not subject to tax in Mauritius on the gain on the sale of shares in non-local affiliates.

The Income Tax Act 1995 contains a general anti-avoidance provision that caters for transactions, operations or schemes that have been set up to avoid tax liability in Mauritius. The specific anti-avoidance provisions to be noted relate to:

• interest on debentures issued by reference to shares;
• excess of remuneration or share of profits;
• excessive remuneration to a shareholder or a director;
• benefit to a shareholder;
• excessive management expenses;
• leases for purposes other than an adequate rent; and
• rights over income retained.

The local tax authorities do not have a regular routine audit cycle, but they are empowered under the Income Tax Act 1995 to carry out assessments on taxpayers. The tax assessments are carried out on an ad hoc basis throughout the year.

The time limit for the tax authorities to raise a tax assessment is two years immediately preceding the year in which a return is filed.

Several major changes have already been implemented in the context of the BEPS Action Plan. Mauritius has also made commitments to the OECD to implement transparency and effective exchange of information for tax purposes.

In respect of BEPS Action 5, Mauritius has complied with the recommendations made by the Forum on Harmful Tax Practices regarding the then-preferential regimes prevailing in Mauritius. Since 2019, the deemed foreign tax credit regime, which was available to companies holding a category 1 global business licence and deemed to be a harmful practice, has been abolished, and the partial exemption regime (as described in 1.4 Tax Rates) was introduced. To benefit from the partial exemption regime, companies have had to satisfy new prescribed substance requirements. Furthermore, the tax rate for both domestic companies and global business licence holders has been aligned at 15%.

In respect of BEPS Action 6, Mauritius has signed and ratified the Multilateral Convention to implement measures to prevent BEPS in relation to Mauritius’ tax treaties. Mauritius has opted to follow the mandatory provisions of the Multilateral Convention under Articles 6, 7 and 16, and the non-mandatory provisions under Article 17 and Part VI (Arbitration).

In respect of BEPS Action 13, Mauritius signed the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports in January 2017 and regulations giving effect to that agreement were proclaimed in 2018.

In respect of BEPS Action 14, Mauritius is amending its existing tax treaties, covered under the Multilateral Convention, to cater for the minimum standard for improving dispute resolution under Action 14 (which requires jurisdictions to allow a taxpayer to present a case to the competent authority of either contracting jurisdiction for mutual agreement assistance).

In January 2022, the tax authorities reported that synthesised texts are in preparation for most of the double taxation avoidance agreements (to which Mauritius is a party) modified by the Multilateral Convention. These synthesised texts will not be legally binding and are being prepared to ease the interpretation (and application) of double taxation avoidance agreements modified by the Multilateral Convention.

Mauritius has long demonstrated its commitment to OECD standards, having joined the Inclusive Framework in November 2017 to work alongside the OECD on implementing the BEPS minimum standards. Building on this commitment, Mauritius has aligned itself with the OECD’s global tax reform by introducing the qualified domestic minimum top-up tax (QDMTT), effective from the 2025–26 fiscal year, reinforcing its dedication to international tax transparency and its status as a forward-looking jurisdiction.

The QDMTT is a key component of the OECD’s Pillar Two initiative, which requires large multinational groups to be subject to a minimum effective tax rate of 15% under the Global Anti-Base Erosion (GloBE) Rules. Mauritius first incorporated the GloBE framework through the Finance Act 2022, with detailed implementation provided in the Finance Act 2025, and the QDMTT ensures that any resulting top-up tax is collected domestically rather than by other jurisdictions.

International tax has an extremely high public profile in Mauritius, as Mauritius has established itself as a platform used by foreign investors to invest from foreign jurisdictions. Mauritius is therefore fully collaborative with international institutions and is committed to comply with international obligations and standards.

Despite concerns from the financial sector about potential unfair tax competition, especially with non-OECD countries after BEPS implementation, the government of Mauritius remains committed to implementing the BEPS minimum standards.

In recent times, increased emphasis has been placed on “substance” in Mauritius. In particular, tax regulations have been amended in respect of the partial exemption regime, in as much as additional conditions have been placed on companies wishing to benefit from that regime. While there is no word on whether the authorities will take steps to tighten these conditions further or place additional obligations on companies, it remains to be seen if the regime will be revisited.

Mauritius has reserved its right under the Multilateral Convention to opt out of applying the Article 3, dealing with hybrid mismatch arrangements.

Mauritius does not have a territorial tax system; companies are taxed on their worldwide income subject to the available credits or double taxation convention (DTC) provisions.

Mauritius does not have a territorial tax system; no CFC reforms are being proposed.

The inclusion of a “principal purpose test” provision in relevant tax treaties is likely to impact investors; as such, investors should ensure that they will not be denied any treaty benefits under their particular circumstances.

Mauritius has not enacted specific transfer pricing rules.

Mauritius participates in country-by-country reporting (CbCR) as part of its broader commitment to uphold international tax transparency standards. By joining the BEPS Inclusive Framework in 2016, Mauritius committed to implementing the minimum BEPS standards, including CbCR. Mauritius issued the Income Tax (Country by Country Reporting) Regulations 2018 on 19 February 2018, with the rules applying to the reporting fiscal years of multinational enterprise groups beginning on or after 1 July 2018.

Following amendments introduced by the Finance Act 2025, a new Section 14A has been inserted into the Value Added Tax Act 1998 to subject supplies of digital and/or electronic services by foreign suppliers to persons in Mauritius to VAT, with effect from 1 January 2026.

As per Section 14A(2) of the Value Added Tax Act 1998, where the turnover of taxable supplies of a foreign supplier in Mauritius exceeds or is likely to exceed MUR3 million or its equivalent in foreign currency, it must appoint a tax representative in Mauritius. As such, foreign suppliers are required to register for VAT, charge and collect VAT, submit monthly or quarterly VAT returns and remit the VAT electronically in approved foreign currencies.

Registration, filing and payment are carried out through the MRA website.

Other than the recently introduced VAT legislation applicable to foreign suppliers of digital and electronic services, no additional digital taxation or income tax rules have been enacted in Mauritius.

There is no applicable information in this jurisdiction.