Corporate Taxes Measures in Mauritius

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Posted on 20/11/2021

Any corporation, resident and non-resident, is subjected to tax in Mauritius. A resident corporation is subject to tax on its worldwide income while a non-resident corporation is liable to tax on any Mauritius-source income. Corporations are currently liable to a 15% income tax on their net income. Moreover, companies that deal in exportation of goods are taxed at a rate of 3% on the income from their export activities.

Along the same lines, all corporate bodies, foreign or resident, operating on Mauritian soil is subjected to income tax. Moreover, as per the corporate law in Mauritius, any société that is formed under any of these attributes in Mauritius are considered as a corporation:

  • A société of cause and participation
  • Of limited partnership
  • A joint venture
  • A société or partnership formed under a foreign country law

Types of Corporate Company

Corporate income tax is taxable on the total net income of a company as per the following guidelines:

  • Global business category 1 (GBC1) companies pay a total of 15% in tax
  • Freeport operators or private Freeport developers carrying on Freeport activities other than providing goods and services on local markets are taxable at a rate of 15%
  • Companies operating in the export of goods are liable to 3% in tax
  • All other companies that fall under the corporation sector are taxable at 15%

As of the start of 2019, all companies that fall under the corporation sector qualify for an 80% exemption in relation to certain specified income that they receive from another country. Hence, no foreign tax will be credited on any foreign-source income if the company has claimed the 80% exemption.

Covid 19 Levy

Due to the Covid-19 situation, the Government came up with the Wage Assistance Scheme (WAS) to safeguard employment. Following this, the Covid-19 levy was introduced to help recoup the whole or part of the WAS from profitable corporations. Any employer who took the WAS was not subjected to the levy or to the tax in the YOAs 2020/21 and 2021/22. The levy applies to:

  • Companies having an accounting year ending between 1 May 2020 and 31 December 2020
  • Companies having an accounting year ending between 1 January 2021 and 30 April 2021

You may find all details pertaining to the finance bill 2021 here.

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