A transparent and competitive tax regime
The tax regime of Mauritius is one of the most attractive in the world, while remaining fully compliant with the international standards of the OECD, the FATF and the European Union. Unlike certain offshore jurisdictions that apply a zero rate with no substance, Mauritius has built a transparent tax system based on a nominal rate of 15% combined with legal optimisation mechanisms that reduce the effective rate for international activities.
This approach gives Mauritius a major strategic advantage: companies benefit from a competitive tax regime while being able to obtain Tax Residency Certificates (TRC) allowing them to invoke double taxation treaties. Zero-rate jurisdictions such as the BVI, the Cayman Islands or the Bahamas cannot offer a TRC, which makes them unsuitable for structures that need access to tax treaties.
The result: Mauritius combines the best of both worlds — an effective rate of 3% for Global Business, comparable to offshore jurisdictions, together with the legitimacy and treaty access of traditional onshore financial centres. To benefit from this regime, the first step is to set up a Global Business Company (GBC) in Mauritius.
Corporate taxation: overview
The corporate tax system in Mauritius is based on the Income Tax Act, administered by the Mauritius Revenue Authority (MRA). The single nominal rate of 15% applies to all companies, but the effective rate varies according to the type of entity and the nature of the income.
Tax rates by type of company
| Type of company | Nominal rate | Effective rate | Reduction mechanism |
|---|---|---|---|
| Domestic company (local income) | 15% | 15% | Standard rate, no reduction |
| GBC (foreign-source income) | 15% | 3% | 80% Deemed Foreign Tax Credit |
| Freeport company (export) | 15% | 3% | DFTC on export income |
| ICT sector (export income) | 15% | 3% | DFTC for export services |
| SME (turnover < Rs 10M) | 15% | 15% | Standard rate (but partial exemptions in the first years) |
| Authorised Company (AC) | 0% | 0% | No tax residency in Mauritius, no TRC |
The Deemed Foreign Tax Credit in detail
The DFTC is the central pillar of Mauritius's tax attractiveness for Global Business. Introduced by the Income Tax Act and governed by the Income Tax (Foreign Tax Credit) Regulations, it operates as an automatic deemed tax credit that reduces the effective rate to 3%.
How the DFTC works
Principle
The DFTC grants a credit of 80% of the Mauritian tax calculated on a GBC's foreign-source income. This credit is automatic and requires no proof of tax actually paid in another country. It applies to all categories of foreign income: dividends, interest, royalties, management fees, capital gains and trading income.
Eligibility conditions
The company must hold a Global Business Licence (GBL) issued by the FSC, be managed and controlled from Mauritius (CMC in Mauritius), have genuine economic substance (staff, premises, local expenditure), and the income must be foreign-source (no double dipping with Mauritius-source income).
Calculation
Foreign income x 15% (nominal rate) = gross tax. Gross tax x 80% = DFTC. Effective tax = gross tax - DFTC = 3% of income. If actual foreign tax is paid, the DFTC is replaced by the actual foreign tax credit if that is higher (no double credit).
Limits and restrictions
The DFTC cannot exceed the Mauritian tax on the income concerned. It does not apply to Mauritius-source income. For groups within the scope of OECD Pillar Two (turnover > EUR 750M), the QDMTT may reduce the benefit. The DFTC is calculated income by income, not on an aggregate basis.
Worked example: the DFTC in practice
| Item | Amount (USD) | Explanation |
|---|---|---|
| Foreign-source income | 1,000,000 | Dividends from a Kenyan subsidiary |
| Mauritian tax at 15% | 150,000 | Nominal rate applied |
| DFTC (80% of 150,000) | - 120,000 | Automatic credit |
| Effective tax due | 30,000 | Effective rate = 3% |
| CSR (Corporate Social Responsibility) | 6,000 | 2% of taxable income (mandatory) |
| Total tax burden | 36,000 | Total effective rate = 3.6% |
CSR contribution: Any Mauritian company whose taxable income exceeds Rs 75 million must contribute 2% of its taxable income to the Corporate Social Responsibility Fund. This contribution is deductible and can be allocated to social programmes approved by the National CSR Foundation.
The tax zeros of Mauritius
Beyond the 3% effective rate on profits, Mauritius stands out for a series of zero rates that make it one of the most comprehensive jurisdictions in the world for legal tax optimisation.
Zero capital gains tax
Mauritius applies no capital gains tax, whether for individuals or companies. This covers:
- Listed and unlisted shares — Disposal of holdings in Mauritian or foreign companies
- Bonds and debt instruments — Including government bonds and corporate bonds
- Investment fund units — CIS, CEF, ETFs, private equity funds
- Real estate — Land and buildings (no property capital gains tax)
- Intellectual property — Patents, trademarks, licences, copyrights
- Crypto-assets — No specific tax regime; treated as assets with no taxable capital gain
International comparison: In France, capital gains on securities are taxed at the 30% flat tax (PFU) (or the progressive scale up to 45% plus 17.2% social contributions). In the United Kingdom, CGT can reach 20-28%. In the United States, long-term capital gains tax ranges from 0 to 20% plus the 3.8% Net Investment Income Tax. The total absence of CGT in Mauritius represents a considerable advantage for investors.
Zero withholding tax
No withholding tax is applied to outbound flows from Mauritius:
| Type of payment | Withholding tax | Recipient | Comparison with France |
|---|---|---|---|
| Dividends | 0% | Residents and non-residents | 30% (PFU) or 12.8% + social contributions |
| Interest | 0% | Non-residents | 0-75% depending on country |
| Royalties | 0% | Non-residents | 33.33% (standard rate) |
| Management fees | 0% | Non-residents | Variable |
| Disposal proceeds | 0% | All | Variable depending on asset |
Zero inheritance and gift tax
Mauritius applies no estate duty, no gift tax and no wealth tax. The intergenerational transfer of wealth — whether real estate, shareholdings in companies, bank accounts or other assets — takes place entirely tax-free.
| Wealth tax | Mauritius | France | United Kingdom | United States |
|---|---|---|---|---|
| Inheritance tax | 0% | 5-45% | 40% | 18-40% |
| Gift tax | 0% | 5-45% | 0-40% | 18-40% |
| Wealth tax | 0% | 0.5-1.5% (IFI) | 0% | 0% |
Taxation of individuals
The tax regime for individuals in Mauritius is one of the most advantageous in the world, with a progressive scale since 1 July 2026: 0% up to Rs 500,000, 10% up to Rs 1,000,000, 20% up to Rs 12,000,000, and 35% above that (Finance Act 2026).
| Item | Mauritian regime | Comparison with France |
|---|---|---|
| Tax rate | 0-35% (progressive scale since July 2026) | 0-45% (progressive scale) |
| Personal deduction | Rs 325,000 (~USD 7,200) | Variable rebate + allowances |
| Deduction for couples | Rs 475,000 (~USD 10,500) | Family quotient |
| Deduction with dependants | Up to Rs 600,000 (~USD 13,300) | Additional shares |
| Capital gains | 0% | 30% PFU |
| Inheritance / Gift | 0% | 5-45% |
| Wealth tax | None | 0.5-1.5% (IFI) |
| Social contributions | ~6% (NPF+CSG) | 17.2% (CSG/CRDS) |
| Foreign income (non-domiciled) | Taxed only if remitted | Taxed worldwide |
The remittance-basis regime
Tax residents who are non-domiciled in Mauritius (i.e. expatriates for whom Mauritius is not their domicile of origin) automatically benefit from the remittance basis regime. This regime is one of the most advantageous in the world for people with international income.
Mauritius-source income
Taxed at 15% in all cases: salaries paid by a Mauritian employer, rental income from property located in Mauritius, profits from business activities carried out in Mauritius. Personal deductions apply.
Foreign-source income remitted
Taxed at 15% only if actually transferred (remitted) to a Mauritian bank account. Partial remittance is possible: only the amounts transferred are taxed.
Foreign income not remitted
Fully exempt from tax in Mauritius. Income kept in bank accounts abroad, reinvested outside Mauritius or used outside the territory is not taxed. No declaration is required for this income.
Practical conditions
The regime is automatic for non-domiciled individuals — no special application is needed. Tax residency is acquired by spending 183+ days a year in Mauritius or by having one's permanent home in Mauritius. Non-domiciled status is maintained as long as the domicile of origin remains abroad.
Tax treaty network
Mauritius has a network of 45 double taxation avoidance agreements (DTAA) in force (MRA, 2026) covering the world's main regions. This network is one of the most extensive among international financial centres of comparable size and constitutes a decisive advantage over offshore jurisdictions without treaties (BVI, Cayman Islands, Bahamas).
Geographic coverage
Africa (16 countries)
South Africa, Botswana, Egypt, Kenya, Lesotho, Madagascar, Mozambique, Namibia, Uganda, Rwanda, Senegal, Seychelles, Eswatini (Swaziland), Tunisia, Zambia, Zimbabwe. The most extensive African network among IFCs.
Europe
France, United Kingdom, Germany, Belgium, Luxembourg, Cyprus, Croatia, Italy, Monaco, Sweden, Guernsey, Jersey, Isle of Man. Comprehensive coverage of the main European economies.
Asia and the Middle East
India, China, Singapore, Malaysia, Thailand, Sri Lanka, Bangladesh, Nepal, Pakistan, Vietnam, United Arab Emirates, Qatar, Kuwait, Oman. The Mauritius-India corridor has historically been one of the most important in the world.
Other regions
Australia, Canada and other jurisdictions. New treaties are regularly being negotiated to extend the network. Mauritius is also a signatory to the OECD's BEPS Multilateral Convention (MLI).
Tax Residency Certificate (TRC)
To invoke the benefits of a tax treaty, the GBC must obtain a Tax Residency Certificate (TRC) from the Mauritius Revenue Authority. This certificate confirms that the company is tax resident in Mauritius and eligible for the benefits of the applicable treaty.
Conditions for obtaining a TRC: The GBC must demonstrate that its centre of management and control (CMC) is located in Mauritius. The FSC verifies economic substance: local office, qualified staff, board meetings held in Mauritius, Mauritian bank accounts, local expenditure. The TRC is renewable annually and can be challenged by the partner country if there is doubt about substance.
VAT (Value Added Tax)
Mauritius applies VAT at a standard rate of 15%, administered by the MRA. The key rules:
- Registration threshold — Mandatory for businesses with annual turnover exceeding Rs 6 million (~USD 133,000)
- Export of services — Zero-rated, allowing recovery of input VAT
- Financial services — Exempt from VAT (with no right to deduction)
- Residential real estate — Exempt from VAT
- Filing — Monthly or quarterly depending on turnover
- Refunds — VAT refund process for exporters and for investments
International compliance
The tax regime of Mauritius is fully compliant with international standards. This compliance is essential for the jurisdiction's credibility and to avoid countermeasures from other countries.
EU whitelist
Mauritius is not on the European Union's list of non-cooperative jurisdictions (Annex I or II). This position is maintained thanks to compliance with the criteria on tax transparency, fair taxation and adherence to anti-BEPS standards.
OECD BEPS and Pillar Two
Mauritius applies the recommendations against base erosion and profit shifting (BEPS). Since 2024, Pillar Two (GLOBE) imposes a 15% minimum tax on multinationals (with consolidated turnover of EUR 750M+) via a Qualified Domestic Minimum Top-up Tax.
FATCA and CRS
Model 1 IGA agreement with the United States for FATCA. Automatic exchange of financial information (CRS) with 100+ jurisdictions. Mauritian financial institutions automatically report accounts held by foreign tax residents.
FATF / ESAAMLG
Mauritius exited the FATF grey list in October 2021 after strengthening its AML/CFT frameworks. The ESAAMLG mutual evaluation confirmed technical compliance and the effectiveness of the measures. Mauritius is now fully compliant.
International tax planning
Mauritius is a powerful international tax planning tool, allowing income flows to be legally structured to minimise the overall tax burden. The most common strategies include:
African holdings
Tax treaties with 16 African countries reduce withholding tax on dividends (often from 15-20% to 5-10%) and interest. Capital gains on the disposal of African holdings are not taxed in Mauritius. The 3% effective rate on dividends received makes Mauritius the optimal location for pan-African holding companies.
Investments in India
The Mauritius-India treaty continues to offer significant advantages for investments in bonds and debt (capital gains exempt in India). Withholding tax on dividends is reduced to 5-15%. CECPA strengthens the Mauritius-India trade corridor.
Intellectual property structures
Royalties received by a GBC holding IP benefit from the DFTC (effective rate of 3%). Royalties paid out of Mauritius incur no withholding tax. Combined with tax treaties, this arrangement optimises IP taxation.
Estate planning
The absence of inheritance and gift tax makes Mauritius a preferred location for intergenerational wealth planning. Trusts and foundations can be structured in Mauritius to protect and transfer wealth tax-free.
Warning: Tax planning via Mauritius must be carried out in compliance with the anti-abuse rules of each country (CFC rules, substance rules, transfer pricing). Structures without genuine economic substance in Mauritius risk being reclassified by the tax authorities of partner countries. Our firm ensures that every structure has the substance needed to withstand a tax audit.
Our tax expertise
With our in-depth knowledge of the Mauritian tax regime and international treaties, our firm supports you in structuring your activities for optimal tax efficiency:
- Tax modelling — Calculation of the overall effective rate under different structuring scenarios
- TRC applications — Preparation and submission of Tax Residency Certificate applications
- Treaty analysis — Identification of applicable treaty rates and optimal structures
- BEPS and Pillar Two compliance — Assessment of the impact of the new rules on your structure
- Coordination with your local advisers — Working in collaboration with your tax advisers in your countries of operation
- Personal taxation — Optimising the tax position of executives and expatriates relocating to Mauritius
Optimise your tax position via Mauritius
A transparent tax regime, compliant with international standards and offering an effective rate of 3%: Mauritius is one of the most competitive jurisdictions in the world. Use our tax simulator to calculate your tax savings, or consult our complete guide to Mauritian taxation to explore every aspect of the regime in depth.