Tax Benefits of Mauritius
15% corporate tax, partial exemption system, no capital gains tax, no withholding tax on dividends, and 45+ Double Taxation Agreements.
Mauritius offers one of the most competitive and internationally respected tax regimes among well-regulated international financial centres. Unlike zero-tax jurisdictions that face mounting scrutiny from the OECD, EU, and FATF, Mauritius has achieved a rare balance: a genuinely competitive tax environment combined with a substantive, OECD-compliant regulatory framework that is recognised and respected by banks, investors, and tax authorities worldwide. The headline corporate tax rate is 15% โ applied uniformly to all Mauritius resident companies with no surcharges or additional levies.
For qualifying Global Business Companies (GBCs) that meet economic substance requirements, the partial exemption system may reduce the effective tax rate on certain categories of foreign-source income โ including foreign dividends, interest, royalties, income from collective investment schemes, and income from financial activities โ by providing an 80% exemption on qualifying income. This can result in an effective tax rate as low as 3% on qualifying income, subject to compliance with substance requirements and individual circumstances. For individuals, the personal income tax rate is a flat 15% on chargeable income.
There is no capital gains tax on individuals or corporations, no inheritance or estate tax, no gift tax, no withholding tax on dividends paid by a Mauritius company to non-resident shareholders, and no stamp duty on share transfers. The combination of these features with the 45+ Double Taxation Agreements means that a Mauritius structure, properly implemented and compliant, can significantly reduce the overall tax burden on international business and investment flows. All tax benefits must be assessed in the context of individual circumstances, applicable legislation, and the specific transaction or structure involved.
Tax laws can change, and professional advice is always recommended.
Key Features of Tax Benefits in Mauritius
15% Corporate Tax Rate
A flat 15% corporate income tax rate applies to all Mauritius tax resident companies. No surtaxes, solidarity levies, or additional charges. Mauritius is not a zero-tax jurisdiction โ the 15% rate is genuine but competitive.
Partial Exemption System
GBCs meeting substance requirements may benefit from an 80% partial exemption on specified categories of foreign-source income (dividends, interest, royalties, leasing income, and certain financial services income), potentially reducing the effective tax rate to 3% on qualifying income. Subject to individual circumstances and substance compliance.
No Capital Gains Tax
Mauritius does not levy capital gains tax on the disposal of shares, real estate, or any other asset class โ for either companies or individuals. This is a significant advantage for investment holding structures.
No Withholding Tax on Dividends
Dividends paid by a Mauritius company to non-resident shareholders are not subject to withholding tax under domestic law. This facilitates tax-efficient repatriation of profits to parent companies or investors in other jurisdictions.
No Inheritance or Estate Tax
There is no inheritance tax, estate duty, or gift tax in Mauritius for either residents or non-residents. This makes Mauritius a compelling domicile for wealth structuring and estate planning.
15% Flat Personal Income Tax
Individuals resident in Mauritius pay a flat 15% rate on chargeable income, with no progressive brackets. Foreign income not remitted to Mauritius is generally not taxable, subject to individual circumstances.
45+ Double Taxation Agreements
Mauritius has concluded over 45 DTAs with major economies in Africa, Asia, Europe, and beyond. These treaties reduce withholding tax rates on dividends, interest, and royalties โ often to zero or near-zero for qualifying structures.
Tax Incentives for Priority Sectors
Additional tax incentives are available for specific sectors including fintech and innovation, manufacturing, healthcare, renewable energy, and agribusiness. Subject to specific eligibility criteria and periodic revision.
OECD Compliant
Mauritius is not on any OECD, EU, or FATF blacklists. Its tax framework is BEPS-compliant, and it participates in the Common Reporting Standard (CRS) and automatic exchange of information.
How to Benefit From Tax Incentives in Mauritius
Tax Position Analysis
We analyse your current corporate structure, tax position, income flows, and the jurisdictions involved to identify the potential tax benefits achievable through a Mauritius structure.
Structure Design
We design the optimal corporate structure โ typically centred on a GBC โ to maximise tax efficiency while ensuring full compliance with substance requirements and applicable legislation.
DTA Mapping
We map the applicable DTAs to your income flows and calculate the potential withholding tax savings on dividends, interest, and royalties from treaty partner countries.
Substance Planning
We design the substance arrangements required to support the partial exemption claim, including local directors, employees, office space, and operational activity in Mauritius.
Implementation
We implement the structure through company formation, FSC licensing, bank account opening, and establishment of substance arrangements.
Tax Filing & Compliance
We prepare and file annual corporate tax returns with the MRA, claim the partial exemption on qualifying income, and obtain Tax Residency Certificates for DTA purposes.
Ongoing Monitoring
We monitor Mauritius tax legislation, DTA developments, and OECD/BEPS changes. We advise proactively on any changes that may affect your tax position.
Requirements for Tax Benefits in Mauritius
- Details of current corporate structure and tax position in all relevant jurisdictions
- Income projections by type (dividends, interest, royalties, trading income) and source country
- Details of target investment jurisdictions and applicable withholding tax rates
- Information on existing DTA positions and structures
- Details of substance arrangements contemplated
- Personal tax details for individual shareholders or beneficial owners
- Details of any existing tax rulings or advance pricing agreements
Frequently Asked Questions About Tax Benefits of Mauritius
Is Mauritius considered a tax haven?
No. Mauritius is not a tax haven. It has a genuine 15% corporate tax rate and a robust regulatory framework. It is not on any OECD, EU, or FATF blacklists. It participates in the Common Reporting Standard and automatic exchange of information. The partial exemption system is a legitimate incentive for qualifying structures that meet substance requirements.
What is the partial exemption system?
The partial exemption system allows GBCs meeting substance requirements to exempt 80% of specified categories of foreign-source income from Mauritius tax. The eligible income categories include foreign dividends, interest, royalties, income from collective investment schemes, income from leasing activities, and income from financial services. The result can be an effective tax rate of 3% on qualifying income, subject to compliance and individual circumstances.
Is there a minimum tax for Mauritius companies?
There is no statutory minimum tax for Mauritius companies. However, the partial exemption and other tax benefits are conditional on meeting substance requirements and complying with all applicable laws. Companies that do not meet substance requirements will be taxed at the standard 15% rate on their full income.
Are there any sector-specific tax incentives?
Yes. Mauritius periodically introduces sector-specific incentives for priority industries. These have included enhanced deductions for R&D, investment tax credits for manufacturing and green energy, and reduced rates for specific activities. Contact us for the current incentives relevant to your sector.
How are dividends received by a Mauritius company taxed?
Foreign dividends received by a Mauritius GBC from a foreign subsidiary are generally exempt under the partial exemption system (80% exemption), provided the GBC meets substance requirements. Domestic dividends received from other Mauritius companies are generally exempt from further tax.
Can I get a tax ruling from the MRA?
Yes. The Mauritius Revenue Authority provides advance tax rulings on specific transactions and structures. An advance ruling provides certainty on the tax treatment before a transaction is executed. We assist with preparing and submitting advance ruling applications.