- Statutory Tax Rate 15
- Surtax Based on Taxable Income 0
- Surtax Based on Statutory Tax 0
- Surtax Deductible from Taxable Income 0
- Statutory Tax Deductable 0
- Effective Tax Rate 15
Statutory Tax Rate
The basic rate of corporate income tax is 15% with effect from 1 July 2008. For Companies holding a Category 1 Global Business License (GBC1), the applicable tax rate is 15% on its domestic-source income. A foreign tax credit would, however, be available against Mauritius tax levied on foreign-source income, being the higher of the actual foreign tax paid or a presumed tax credit of 80% of the Mauritius tax charged with respect to that income. Therefore, the maximum tax rate which applies to GBC1s on their foreign-source income is 3%, and, where it can be proved that the actual foreign tax is paid at the rate of 15% or more with respect to foreign-source income, no Mauritius tax will arise. Companies holding a Category 2 Global Business License (GBC2) incorporated under the laws of Mauritius are exempt from income tax.
Effective 1 January 2019, the GBC1 and GBC2 regimes are replaced with a new Global Business License regime and a new company type, the Authorized Company. Under the new regime, the presumed tax credit is replaced with a partial exemption whereby 80% of specified income is exempted from income tax for domestic Mauritius companies and licensed Global Business Corporations, subject to certain conditions, including for: foreign source dividends; interest, except for banks; profits attributable to a foreign permanent establishment; income derived from overseas by a collective investment scheme (CIS), closed-end fund, CIS manager, CIS administrator, investment adviser or asset manager; and income derived by companies engaged in ship and aircraft leasing. The existing credit system for relief of double taxation continues to apply where the above partial exemption is not available.
The new Authorized Company somewhat replaces the GBC2 license for companies that are not held or controlled by a person that is a citizen of Mauritius, and that conduct business principally outside Mauritius and has its place of effective management outside Mauritius. For Authorized Companies, foreign-source income is outside of the scope of Mauritius tax, while Mauritius source income is generally taxable and annual returns must be submitted.Depending on the date of issue, existing Category 1 or 2 Business Licenses will be transitioned as follows:
- If issued on or before 16 October 2017, the licenses remain valid until 30 June 2021, after which Category 1 Business Licenses will be deemed to be Global Business Licenses and Category 2 Business Licenses will lapse;
- If issued after 16 October 2017, the licenses remain valid until 31 December 2018, after which Category 1 Business Licenses will be deemed to be Global Business Licenses and Category 2 Business Licenses will lapse;
For Category 2 Business License holders transitioned until 30 June 2021, current exemptions generally continue to apply except in respect of the following income: income from intellectual property assets acquired from a related party after 16 October 2017; income from intellectual property assets acquired from an unrelated party, or newly created intellectual property assets, after 30 June 2018; and income derived from such specific assets acquired or projects started after 31 December 2018.
From 1 July 2017, a reduced income tax rate of 3% is introduced for companies engaged in the export of goods (tax credit for investment in new plant and machinery prorated accordingly), with the reduced rate applied on the chargeable income attributable to that export.