Taxation in Mauritius

Mauritius is a low-tax jurisdiction. Income tax and corporate tax for domestic companies is 15%. For Global Business Companies (GBC), the effective coroporate tax rate will be reduced to 3%, thanks of international tax credits of 80%.

There is no capital gains tax.

There is no withholding tax for GBCs.

Mauritius has concluded 43 tax treaties with other countries (as of March 2018) and is party to a series of treaties under negotiation. Up-to-date information con be retrieved here.

Double Taxation Avoidance Agreements

Global investors benefit from the many Double Taxation Avoidance Agreements Mauritius has signed with African countries:

The specific advantages for a Mauritius-registered entity benefiting from the DTAs are:

Capital gains tax (CGT), where imposed in Africa, is generally levied at a rate ranging from 30-35%. However, the DTAs in force in Mauritius restricts taxing rights of capital gains to the country of residence of the seller of the assets. Since there is no CGT in Mauritius, the potential tax savings for the Mauritius registered entity are significant.

The majority of African states impose some withholding tax on dividends paid out to nonresidents, varying between 10% and 20%. The DTAs in force in Mauritius limit withholding tax on dividends.

With respect to CGT, the DTAs guarantee the maximum effective withholding tax rate should changes occur in the fiscal policy in the countries of investment.

Where to get appropriate legal and tax advice

We do not offer tax or legal advice by ourselves. However, we have a network of experts in Germany and abroad that can provide this service. Please contact us if you need professional assistance from experts that are familiar with international tax laws, bilateral tax treatied and the specifics of the national tax laws of the investor's tax domicile.

According to our experience, only attorneys at law and tax advisers that have both the knowledge and experience about cross-border investments and global taxation, are qualified to give sound advice. They can best be found in the big cities and especially the financial centers of their respective countries.

Attorneys at law and tax advisers that are not familiar with it usually just discourage clients from doing anything beyond their scope of expertise. The most unqualified advice which unfortunately is being given very often is: "Do not invest in Africa - it is too risky."