Under domestic law, a company is resident in Mauritius for tax purposes if it is incorporated in Mauritius or centrally managed or controlled in Mauritius.
A company not incorporated in Mauritius is resident in Mauritius only if it is centrally managed and controlled in Mauritius.
In the absence of a tax treaty, any income derived from the following is taxed in Mauritius:
- Any business carried on wholly or partly in Mauritius.
- Any contract wholly or partly performed in Mauritius.
A GBC2 company is not considered a resident in Mauritius for the purposes of double taxation treaties (DTTs).
As of January 2019, GBC2 will be abolished. Companies conducting business and having their place of central management outside of Mauritius will be required to apply to the FSC to be registered as an Authorised Company.
An Authorised Company will be treated as a non-resident for tax purposes in Mauritius.
Under a tax treaty, a company is considered a resident in Mauritius if it is incorporated in Mauritius or if its central management is in Mauritius.
Permanent establishment (PE)
Generally, a PE is created under a tax treaty if one of the following criteria is met:
- Branch, office, factory, workshop, or installation used for extraction of natural resources.
- Building site, construction, installation, assembly, or supervisory services where the activity on the site lasts for a minimum of six months or 12 months, depending on the tax treaty.