Финансово-консалтинговая компания CYWORLD WEALTH

Mauritius Announces New Tax Credits for 2021-2022 Budget

28 Aug
Mauritius Announces New Tax Credits for 2021-2022 Budget Advocate Cyprus CYWORLD WEALTH

Mauritius Announces New Tax Credits for 2021-2022 Budget

Mauritius Announces New Tax Credits for 2021-2022 Budget

Mauritius announced numerous tax breaks for investors and foreigners in its recently published budget law.

The budget provides for a preferential corporate tax rate of three percent, instead of 15 percent, for companies operating in the medical, biotech and pharmaceutical sectors.

In addition, companies building factories for the production of pharmaceutical products and medical devices will be exempted from:

  • Registration fee and land transfer tax.
  • Land conversion tax.
  • VAT on construction.

In addition, Mauritius will introduce a 200 percent deduction for businesses purchasing specialized software and devices.

To support the financial services industry, the government announced that tax holidays for family offices, as well as for fund and asset managers, will be increased from 5 to 10 years.

The government said a new securities law would be introduced, new legislation governing virtual assets would be enacted, and the Bank of Mauritius would introduce the central bank’s digital currency, the digital rupee, on an experimental basis.

To encourage large manufacturers to purchase from SMEs, a 110 percent deduction will be allowed for purchases of locally produced SMEs.

Also, the budget is extending the tax debt settlement scheme for SMEs until December 2021.

For individuals, a new “Premium Visa Scheme” has been announced in the budget. The government says the initiative aims to encourage eligible foreigners to temporarily stay in Mauritius for at least one year, with the option of renewal.

An award visa holder staying in the Republic of Mauritius for 183 days or more will be subject to the following income tax:

  • Income earned in Mauritius for an award visa holder (for example, remuneration for work performed remotely in Mauritius) will be taxed on a remittance basis, that is, in the same way as income from a foreign source.
  • Money spent in Mauritius using foreign credit or debit cards by the award visa holder will not be considered as transferred to Mauritius.
  • Income earned and deposited in a bank account in Mauritius will be taxable unless the holder of the award visa makes a claim that the required tax has been paid on him in his country of origin or residence.

The scheme will be introduced retroactively from November 1, 2020.

The above is for informative purposes only.  Further professional advice should be sought for each particular case. Our firm does not accept any responsibility for any loss or damage occurring by acting on the basis of this information.