Corporate tax in Mauritius
- Currency – Mauritian rupee (MUR)
- There is no exchange control.
- Accounting Principles / Financial Reporting – IAS / IFRS. Financial statements must be filed annually.
- The main business entities are private and public limited companies, sole proprietors, subsidiaries of a foreign company and société.
- Corporate income tax rate – 15%
- Branch tax rate – 15%
- Capital gains tax rate – 0%
A company is resident if it is incorporated in Mauritius or its central management and control is in Mauritius. However, a company registered in Mauritius will be considered a non-resident if it is managed and controlled centrally from outside Mauritius.
Residents are taxed on “international” income; non-residents are taxed only on income from sources in Mauritius. Branches are taxed in the same way as subsidiaries.
Taxable Income – Income tax is levied on a company’s taxable income, which consists of commercial / trade income and passive income. Ordinary business expenses are deducted when calculating taxable income.
The standard rate is 15%.
Companies exporting goods are taxed at 3% on taxable profits attributable to exports.
There is no income tax.
Alternative Minimum Tax – There is no alternative minimum tax.
Dividends paid by a company resident in Mauritius are exempt from income tax. Foreign dividends are taxable, but base tax and withholding tax credits may be claimed.
There is no capital gains tax in Mauritius.
Losses can be carried forward for five years, except for losses arising from annual capital allowances incurred on or after July 1, 2006, which can be carried forward indefinitely. No carry forward is allowed.
Paid foreign taxes may be credited against the Mauritius tax payable on the same income.
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