What are the advantages of the Mauritian Tax System

Boasting a simple, transparent and advantageous tax system, Mauritius provides a wide array of fiscal incentives in line with the standards of the Organisation for Economic Co-operation and Development (OECD), to non-citizens wishing to invest in Mauritius. You will find in this article all that you need to know about taxation in Mauritius and the conditions attached.

First of all, to benefit from the Mauritian attractive tax regime, one should be a fiscal resident of the island by either being a Mauritian citizen, or by holding a Mauritian Residence Permit (Occupation Permit as a professional, entrepreneur, investor or retired).The Mauritian tax system is very simple: a unique flat tax rate of 15% on income, sales revenue, rental and property income (under conditions of tax conventions signed with country of origin). Value-added tax amounts to 15% as well.

Unique flat tax rate

The advantageous tax system of Mauritius includes:

Unique flat tax rate of 15%
No property tax
No tax on dividends received in Mauritius
No tax on capital gains
No inheritance tax for direct descendants
Free repatriation of profits, dividends and capital from companies located outside Mauritius and taxed at 15 %
No customs duty on goods or equipment imported via the free port
Total tax exemption for import-export activities

Income Tax in Mauritius

Income tax in Mauritius is calculated and applied directly at source by the employer (Pay As You Earn – PAYE). All employees of companies located in Mauritius, locals or non-citizens, are subject to the following tax deduction on their salaries:

CSG at 15% for the National Pension Fund (NPF)
National Savings Fund (NSF) at 1%
12.5% income tax pour gross salaries exceeding MUR 50,000
15% income tax for gross salaries not exceeding MUR 50,000

Note: Mauritius and France have signed a Double Taxation Avoidance Agreement (DTAA), meaning that tax is applied only in the source country

The fiscal year in Mauritius

It is good to note that the fiscal in Mauritius starts on the 1^st of July to end on the 30^th of June of the following year. Revenue submissions should be filed physically not later than the 30^th of September, or online not later than the 15^th of October.

Tax exemption in Mauritius

Income tax reliefs based on the number of dependants within the household
Income tax exemptions on voluntary contributions into medical health schemes

Taxation of Mauritius-based companies

Mauritian companies benefit from the following tax advantages:

No tax on capital gains
No tax on dividends
No tax on import-export activities
No customs duty on goods and equipment imported via the Mauritian Free Port zone

Offshore companies and investment

Aiming at promoting job creation within a dynamic environment, Mauritius grants permanent residency to foreign investors, as from a well-defined investment level and for specific sectors.

An offshore company, commonly known in Mauritius as a Global Business Company (GBC) is defined as a company whose headquarters is established in a foreign country in which it does not have commercial activities, and whose management is not domiciled in that particular country.

Offshore companies and tax advantages

Flat tax rate of 15%
Companies specialised in import-export activities are taxed at a rate of 3% on profits generated by import-export activities
No tax at source on dividends or interests
Reduction of up to 3% on income from a collective investment scheme (UCITS), investment advisers, UCITS managers or FSC-approved managers

Retired in Mauritius and taxation

Non-citizen retirees benefit from 15% income tsx in case that they are Mauritian tax residents
Pensions for public sector foreign retirees are taxed in France except if the retirees are also Mauritian citizens (double-citizenship)
Pensions paid by Social Security (including complementary pensions) are taxed in France

Type d’impôt	Taux d’imposition	Abattement fiscal
Impôt sur le revenu + Cotisation salariale	15% + 2% (NPF & NSF)	Assurance santé Enfants/personnes à charge Dépenses liées à vos activités
Indépendant/self-employed	15%	Assurance santé Enfants/personnes à charge Dépenses liées à vos activités
Charges patronales sur salaire de l’employé	10% + 2%	Pour les salaires mensuels excédant Rs 19 000
Sur les bénéfices des sociétés	15%	Dividendes et plus-values Gains en capital Activités d’import-export Droit de douane (port franc) Taxe foncière ou taxe d’habitation Droit de succession (descendants directs)
Pour certaines sociétés offshores (GBC)	3%	Dividendes et plus-values Gains en capital Activités d’import-export Droit de douane (port franc) Taxe foncière ou taxe d’habitation Droit de succession (descendants directs)
Retraites	15%
Revenus locatifs	15%
TVA	15%	Pas de TVA pour les chiffres d’affaires annuels de moins de Rs 6M