Mauritius tax system in 2023: things you need to know
The tax system of Mauritius in 2023 is attractive to investors. It offers a low- income tax rate, the opportunity to get a discount and other benefits.
Features of business income tax
According to local laws, any company registered in Mauritius must pay income tax, regardless of the origin of income, including abroad. The income tax is 15%, but there are a few exceptions. For example, companies that export goods and freeport operators pay 3%.
Any company is entitled to an 80% exemption from paying a certain tax from income received abroad. These can be:
- foreign dividends;
- profits from foreign sources that have been received under a collective investment scheme;
- income from closed-end funds;
- profits of an investment adviser or asset manager who has been licensed or approved by the FSC;
- income from aircraft and ship leasing;
- income derived from money lent through a single-race lending platform;
- income from reinsurance or brokerage reinsurance activities;
- profits derived from the sale or management of aircraft assets and parts, including aviation-related consulting services.
Who is exempt from income tax?
Only an organization that conducts business abroad and has its headquarters outside the island is exempt from income tax. In this case, such an organization is considered a non-resident and must apply to the FSC as an authorized company registration. Despite the exemption from income tax, the non-resident company must file a return with the IRS.
Corporate Social Responsibility Fund (CSRF)
A company in Mauritius must set up a CSR fund, equivalent to 2% of the taxable income for the preceding year. At least 75% of this amount must be remitted to the MRA (Mauritius Revenue Authority). Following the company's internal CSR Concept, the remaining money must be allocated to the CSR Program. Its priority areas are:
- education and training;
- family protection, including protection against domestic violence;
- fighting poverty;
- development of social housing;
- support for people with severe disabilities.
This money cannot be used in such cases:
- for activities aimed at supporting shareholders, company management, and their families;
- for actions that violate public safety, harm the national interest, or are aimed at discrimination;
- political, religious, trade union or other activities carried out for the benefit of shareholders and employees;
- for staff training;
- for promotional activities.
If the money allocated for the development of the CSR Program has not been fully used, its balance is transferred to the MRA together with the annual report. This amount may be reduced after agreement with the National CSR Fund, which must be approved in writing.
- Local administrations in Mauritius do not charge income tax.
- There is no charge on capital gains from the sale of shares in the company.
- Mauritius levies a tax of 5% on the transfer of shares in any company which owns or leases real estate. This amount rises to 20% if among its assets is land.
- Registration fee is 5% when transferring assets to a company that owns or leases real estate. It is exempt from the fee if its securities are listed on the Mauritius Stock Exchange, or has a "global business license".
How to start a business in Mauritius
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