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Mauritius: Domestic Corporate Taxation

Scope of Income Tax

The taxation of resident Mauritian companies is governed by the Income Tax Act 1995, which is substantially based on UK tax law. However, there are special taxation regimes: for companies operating offshore under the Financial Services Act 2007, supervised by the Financial Services Commission), for freeport companies, and for offshore trusts, see Offshore Legal and Tax Regimes.

A company is treated as resident in Mauritius if it is incorporated in Mauritius or if it is managed and controlled from Mauritius. A resident company is taxed on its worldwide income, which includes foreign-source income.

Taxable income includes rents, dividends, royalties and interest; however, dividends paid by companies listed on the stock exchange, and companies which pay the full tax rate are exempt from tax in the hands of the receiving shareholder, whether resident or not. There is no capital gains tax, except on gains arising from the parcelling out of land, see Capital Gains (Morcellement) Tax below. Other capital gains are not included in taxable income.

 

 

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