Overview of the Mauritius Tax System
Mauritius operates a competitive and transparent tax system that has been a key driver of its success as an International Financial Centre. The tax regime is based on the Income Tax Act 1995, administered by the Mauritius Revenue Authority (MRA), and offers significant advantages for international businesses.
Key Tax Features
Corporate Income Tax
The standard corporate income tax rate is 15%, among the lowest in the region. For GBCs, the partial exemption regime provides an 80% exemption on specified foreign-source income, resulting in an effective rate of just 3%.
No Capital Gains Tax
Mauritius does not impose capital gains tax on the sale of shares, securities, or other assets. This makes it particularly attractive for holding companies and investment vehicles.
No Withholding Tax on Dividends
There is no withholding tax on dividends paid to non-resident shareholders. Combined with DTA benefits, this creates highly efficient repatriation channels for international investors.
Double Taxation Agreements
Mauritius has an extensive network of over 45 double taxation agreements covering key markets in Africa, Asia, and Europe. These treaties reduce or eliminate withholding taxes on dividends, interest, and royalties.
Tax Categories
Corporate Tax
15% standard rate with partial exemption regime for GBCs. Tax incentives for specific sectors including fintech, pharmaceuticals, and freeport activities.
Double Taxation Agreements
45+ DTAs providing reduced withholding tax rates. Key treaties with India, South Africa, China, Singapore, UK, France, and many African nations.
Tax Optimization
Legitimate strategies for tax planning through Mauritius: partial exemptions, DTA benefits, holding structures, and IP arrangements.
VAT
Standard rate of 15% on domestic supplies. Exports and certain services are zero-rated. GBCs conducting business outside Mauritius are generally not subject to VAT.
FATCA & CRS
Mauritius participates in automatic exchange of financial account information under both FATCA (with the US) and CRS (with 100+ countries).
Tax Rates Summary
| Tax Type | Rate |
|---|---|
| Corporate income tax | 15% |
| Effective rate for GBCs (partial exemption) | ~3% |
| Capital gains tax | 0% |
| Withholding tax on dividends (non-residents) | 0% |
| Withholding tax on interest (non-residents) | 0% |
| Withholding tax on royalties (non-residents) | 15% (reduced under DTAs) |
| VAT (standard rate) | 15% |
| Personal income tax | 15% flat |
| Inheritance/estate tax | 0% |
The Partial Exemption Regime
80% Exemption on Foreign-Source Income
The partial exemption system, available to GBCs, provides an 80% tax exemption on the following categories of foreign-source income: dividends, interest, royalties, income from provision of services to non-residents, and profits attributable to a foreign permanent establishment. The remaining 20% is taxed at 15%, giving an effective rate of 3%.
Compliance and Reporting
Companies in Mauritius must comply with annual tax filing obligations:
- Corporate tax return — Due within 6 months after the financial year-end
- Advance payment system — Quarterly advance payments of corporate tax
- Transfer pricing — Arm's length documentation required for related-party transactions
- Annual financial statements — Audited statements mandatory for GBCs
Mauritius also complies fully with FATCA and CRS reporting requirements.
Need tax guidance for your Mauritius company? Sunibel Corporate Services provides comprehensive tax advisory, compliance, and optimization services. Contact us for a free consultation.