Mauritius: Offshore Legal and Tax Regimes
Taxation of Foreign Employees of Offshore Operations
This section refers to the taxation of foreign employees of the various types of offshore entity; see Domestic Personal Taxation for the general principles of individual taxation in Mauritius, which also apply to the resident employees of offshore or non-resident entities. There is in fact no distinction between the employees of resident or non-resident operations. Most types of compensation and benefit paid to employees are taxable; there are no special privileges or exemptions for expatriate workers, except for the special situations detailed below:
- The expatriate staff of GBC1 and GBC2 Companies (and of the other types of offshore entity listed above) pay half the normal rate of personal income tax; two of them per company can import cars and household equipment free of customs duty.
- The crew of ships on the Mauritian Open Registry are exempt from payroll taxes;
- For companies in the Export Processing Zone, two expatriate staff are partly exempted from income tax.