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Mauritius Corporate - Taxes on corporate income

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A corporation resident in Mauritius is subject to tax on its worldwide income. A non-resident corporation is liable to tax on any Mauritius-source income, subject to any applicable tax treaty provisions.

Corporations are liable to income tax on their net income, currently at a flat rate of 15%. Companies engaged in the export of goods are liable to be taxed at the rate of 3% on the chargeable income attributable to that export based on a prescribed formula.

Mauritius has a credit system of taxa­tion whereby foreign tax credit is given on any foreign-source income declared in Mauritius on which foreign tax of similar character to Mauritian tax has been imposed.

All corporate bodies incorporated in Mauritius (except companies holding a Category 2 Global Business Licence (i.e. 'Authorised Companies' as of 1 January 2019) and certain approved funds and associations) are subject to income tax. This applies to all associations and other registered bodies. Income derived by local partnerships is shared and taxed in the hands of the partners. Foreign corporations carrying on business, or having a place of business, in Mauritius are also liable to income tax on income derived from Mauritius. Resident sociétés are not liable to corporate tax.

Société means a société formed under any enactment in Mauritius and includes:

  • a société de fait or a société en participation
  • a limited partnership
  • a joint venture, and
  • a société or partnership formed under the law of a foreign country.

Income tax is payable on total net income before distribution at the following rates:

Entity Rate (%)
Global Business Category 1 (GBC1) companies (Global Business Licence as of 1 January 2019) (except for specific income, see below) 15
Freeport operators or Private Freeport Developers carrying on Freeport activities other than providing goods and services on local markets 15
Global Business Category 2 (GBC2) companies Exempt
Companies engaged in the export of goods 3
All other companies 15
  • As of 1 January 2019, GBC1 companies will be renamed as Global Business Licence (GBL) are liable to tax at the rate of 15%.
  • However, GBL will qualify to an exemption of 80% of the specific foreign-source income (e.g. foreign dividend not allowed at deduction in source country, foreign interest income, foreign-source income derived by a Collective Investment Scheme [CIS], closed end funds, CIS manager, CIS administrator, investment adviser or asset manager licensed or approved by the Financial Services Commission [FSC], and income derived by companies engaged in ship and aircraft leasing).
  • No actual foreign tax credit is allowed on foreign-source income if the GBL company has claimed the 80% exemption.
  • Exemption to Freeport companies (excluding local trading activity) shall continue to apply until 30 June 2021 to any company issued with a freeport certificate on or before 14 June 2018.

The maximum effective tax rate is therefore 3% for the specific income streams; otherwise, the tax rate is 15%. See below grandfathering provisions for GBC1:

GBC1 licence issue date Grandfathering
On or before 16 October 2017 Grandfathered up to 30 June 2021
After 16 October 2017 Grandfathered up to 31 December 2018
  • As of 1 January 2019, GBC2 licence will be abolished.
  • Companies conducting business and having their place of effective management outside of Mauritius will be required to apply for an authorisation to the FSC to be registered as an 'Authorised Company'.
  • After 31 December 2018 or 30 June 2021, as applicable (see below), GBC2 licences will lapse and companies should continue to comply with the prescribed requirements of the FSC.
  • An Authorised Company will be treated as a non-resident for tax purposes in Mauritius.
  • An Authorised Company is required to file a return of income to the Mauritius Revenue Authority (MRA) within six months of its year-end.
  • Transitional period available to GBC2 companies is as follows:
GBC2 licence issue date Grandfathering
On or before 16 October 2017 Grandfathered up to 30 June 2021
After 16 October 2017 Grandfathered up to 31 December 2018

For more information, see the Tax credits and incentives section.

Taxation of Banks

Banks

All banks are required to pay a special levy calculated according to their book profit and their operating income derived during, or its chargeable income in respect of, the preceding year. 'Operating income' means the sum of net interest income and other income before deducting non-interest expense.

The rates of the special levy on banks are as follows:

Year of assessment commencing Rates
1 July 2017 Global Business/Non-residents: 3.4% on book profit and 1% on operating income;

Local transactions: 10% of chargeable income
1 July 2018  1.7% on book profit;

0.5% on operating income

Except where the levy is computed on chargeable income, no levy shall be paid in a year where in the preceding year:

  • the bank incurred a loss, or
  • the book profit of the bank did not exceed 5% of its operating income.

Per Finance Bill 2018, the following changes will apply:

  • Abolition of the Segment A and Segment B regime effective as from the year of assessment commencing 1 July 2020.
  • Banks deriving income from banking transactions with non-residents and GBL companies will still be considered as foreign source income up to the year of assessment commencing 1 July 2019.
  • Effective from the year of assessment commencing 1 July 2020, banks will no longer be required to submit auditor’s certificate regarding segmental split of expenses and will be taxed as follows:

    Chargeable income Tax rate (%)
    Up to 1.5 billion Mauritian rupees (MUR) 5
    Remainder 15


  • Where, in an income year:
    • a bank has a chargeable income exceeding MUR 1.5 billion
    • its chargeable income of the base year exceeds MUR 1.5 billion
    • its chargeable income of the current year exceeds that of its base year, and
    • it satisfies the prescribed conditions
    the bank is taxed as follows:

    Chargeable income Tax rate (%)
    Up to 1.5 billion Mauritian rupees (MUR) 5
    Above MUR 1.5 billion, up to the amount equivalent to the chargeable income of the base year 15
    Remainder 5


  • Where, in an income year:
    • a bank has chargeable income exceeding MUR 1.5 billion
    • its chargeable income of the base year does not exceed MUR 1.5 billion
    • its chargeable income exceeds that of its base year, and
    • it satisfies the prescribed conditions
    the bank is taxed on their chargeable income at the rate of 5%.
  • Where chargeable income of the banks is taxed at 5%, no tax credit is allowed on foreign-source income.

Corporate Social Responsibility (CSR) Fund

Every year, a company has to set up a CSR Fund equivalent to 2% of its chargeable income of the preceding year.

At least 50% of the CSR Fund set up on or after 1 January 2017 up to 31 December 2017 should be remitted to the Mauritius Revenue Authority (MRA), and at least 75% of the CSR Fund set up on or after 1 January 2018 should be remitted to the MRA.

In respect of the CSR Fund set up before 1 January 2019, the remaining amount of the CSR Fund shall be used to implement a CSR Programme in accordance with the company's own CSR Framework. For the CSR Fund set up on or after 1 January 2019, the remaining amount shall be used to implement a CSR Programme or finance a non-governmental organisation implementing a CSR Programme in the following priority areas of intervention:

  • Dealing with health problems resulting from substance abuse and poor sanitation.
  • Educational support targeting families in the Social Register of Mauritius.
  • Family protection; protection to victims of domestic violence.
  • Poverty alleviation targeting families listed in the Social Register of Mauritius.
  • Social housing targeting families in the Social Register of Mauritius.
  • Supporting persons with severe disabilities.

Any amount unspent (to a CSR Programme) shall be remitted to the MRA together with the company's annual return. The amount to be remitted to the MRA could be reduced upon prior written approval from the National CSR Foundation. This is where the company intends to spend the unremitted amount within the priority areas of intervention.

No CSR money shall be spent by a company on the following activities:

  • Activities discriminating on the basis of race, place of origin, political opinion, colour, or creed.
  • Activities targeting shareholders, senior staff, or their family members.
  • Activities that are against public safety and national interest.
  • Religious, political, trade union, self-financing, staff welfare, and marketing activities.

Where the amount paid out of the CSR Fund is in excess to the amount provided for under that CSR Fund, such excess may be carried forward and offset in equal instalments against any amount to be remitted to the MRA in respect of five succeeding years starting from year of assessment 2016/17.

Where a company is required to submit an Advance Payment System (APS) statement, it should remit 25% of the CSR amount to be remitted to the MRA together with the APS statements, and the final 25% is to be remitted on the submission of the final return.

Note that the following entities are not subject to the CSR regulations:

  • A company holding a GBC1 Licence under the Financial Services Act.
  • A bank holding a banking licence under the Banking Act, in respect of its income derived from its banking transactions with non-residents or with corporations holding a Global Business Licence under the Financial Services Act.
  • An Integrated Resort Scheme (IRS) company referred to in the Investment Promotion (Real Estate Development Scheme) Regulations 2007.
  • A non-resident société, a foundation, a trust, or a trustee of a unit trust scheme.

Also note the following:

  • The CSR Fund shall apply in all respects to a resident société, other than a resident société holding a Global Business Licence under the Financial Services Act, its net income shall be deemed to be its chargeable income, and any distribution of its net income shall, for the purposes of the CSR Fund, be deemed to be dividends.

Finance Bill 2018 sets the following:

  • Freeport operators and private Freeport developers will not be subject to CSR.
  • For CSR funds set up on or after January 2019, companies will be allowed to retain and spend an additional 25% of the fund, upon approval of the National CSR Foundation for programs that started prior to January 2019 and which are in accordance with the guidelines set by the National CSR Foundation.
  • Any unused tax credit will not be allowed to be offset against CSR payable.

Local income taxes

Local income taxes levied by local administration, such as urban councils, do not exist in Mauritius.


Last Reviewed - 28 July 2018

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