The advantages of the Mauritius Tax System

Mauritius offers a straightforward and attractive tax system, with a variety of fiscal incentives aligned with OECD standards, to non-citizens interested in investing in the country. This article provides a comprehensive overview of taxation in Mauritius and the associated conditions.

To take advantage of Mauritius’ appealing tax system, one must be a tax resident of the island, either by being a Mauritian citizen or by holding a Mauritius Residence Permit. The Mauritian tax system is notably simple, with a flat rate of 15% applied to income, sales revenue, rental income, and property income. The Value Added Tax (VAT) is also set at 15%.

The advantageous tax system of Mauritius includes:

Unique flat tax rate of 15%

*No property tax
*No tax on dividends received in Mauritius
*No tax on capital gains
*No inheritance tax for direct descendants
*Free repatriation of profits, dividends, and capital from companies located outside Mauritius and taxed at 15%
*No customs duty on goods or equipment imported via the free port
*Total tax exemption for import-export activities

Income Tax in Mauritius

Income tax in Mauritius is calculated and applied directly at source by the employer (Pay As You Earn – PAYE). All employees of companies located in Mauritius, locals or non-citizens, are subject to the following tax deductions on their salaries: *CSC at 1.5% for the National Pension Fund (NPF) *National Savings Fund (NSF) at 1% *12.5% income tax for gross salaries exceeding MUR 50,000 *15% income tax for gross salaries not exceeding MUR 50,000

Note: Mauritius and France have signed a Double Taxation Avoidance Agreement (DTAA), meaning that tax is applied only in the source country.

The fiscal year in Mauritius

It is good to note that the fiscal year in Mauritius starts on the 1st of July to end on the 30th of June of the following year. Revenue submissions should be filed physically not later than the 30th of September, or online not later than the 15th of October.

Taxation of Mauritius-based companies

Mauritian companies benefit from the following tax advantages: *No tax on capital gains *No tax on dividends *No tax on import-export activities *No customs duty on goods and equipment imported via the Mauritian Free Port zone

Offshore companies and investment

Aiming at promoting job creation within a dynamic environment, Mauritius grants permanent residency to foreign investors, as from a well-defined investment level and for specific sectors.

An offshore company, commonly known in Mauritius as a Global Business Company (GBC), is defined as a company whose headquarters is established in a foreign country in which it does not have commercial activities, and whose management is not domiciled in that particular country.

Offshore companies and tax advantages

*Flat tax rate of 15%
*Companies specialized in import-export activities are taxed at a rate of 3% on profits generated by import-export activities
*No tax at source on dividends or interests
*Reduction of up to 3% on income from a collective Investment scheme (UCITS), Investment advisers, UCITS

Retired in Mauritius and taxation

*Non-citizen retirees benefit from 15% income tax in case that they are Mauritian tax residents
*Pensions for public sector foreign retirees are taxed in France except if the retirees are also Mauritian citizens (double-citizenship)
*Pensions paid by Social Security (including complementary pensions) are taxed in France

Tax exemption in Mauritius

*Income tax reliefs based on the number of dependents within the household
*Income tax exemptions on voluntary contributions into medical health schemes