MAURITIUS TAX PLANNING
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Mauritius is an independent republic located off the southeastern coast of Africa. The majority of its population are of South Asian extraction, but large African and a much smaller white population also exists. Historically, the island was successively colonised by the Dutch, French and most recently the British. However, it is the French who left the biggest cultural impact with most place names being in French and most of the population speaking a version of French on a day-to-day basis. However, it is English that dominates in business whilst the legal system is a hybrid of the French civil and the English common law systems. The island gained its independence from the UK in 1968. Today tourism is one of the key sectors, but financial services and tax planning are now also extremely important the economy. Economically, it is one of the most stable and wealthy countries on the African continent.
Population: 1,235,000 (2025)
Size: 2040 sq.km.
Capital: Port Louis
Economy: Mauritius is by far the wealthiest country in Africa with a per capita GDP of US$40,800.00 and far ahead of second placed South Africa with a per capita GDP of under US$12,000.00. In world terms, this places Mauritius in the upper middle level of countries. The reason for Mauritius’s relative success can be attributed to stable and equitable governance, a hugely successful tourist sector but also a growing services and tax planning sector supported by an excellent tax treaty network. In particular, Mauritius can be an attractive location for those with Indian connections due to its favourable tax treaty with that country or for those seeking a relatively well-regulated private interest foundation.
MAURITIUS COMPANIES WHY & FOR WHOM?
In Mauritius for tax purposes there are basically 3 types of local companies, all subject to the Companies Act, 2001. In structure, the company types are very similar to those in common law jurisdictions with private limited liability companies, limited by guarantee companies and public limited companies. With respect to the ability to avail of the comprehensive Mauritian double taxation treaty network, this is limited to domestic and global business companies but not authorised companies (see below).
DOMESTIC COMPANIES (DC’s)
As its name implies, a domestic company is one that carries out its business in Mauritius. These companies are most often used where a company is conducting trading activities with Mauritian local individuals or corporate entities. They are subject to all applicable local corporate tax rates and can be owned by either locals or non-residents.
GLOBAL BUSINESS COMPANIES (GBC’s)
A GBC must be licensed by the Financial Services Commission (FSC) and is subject to both the regulatory supervision of The Companies Act 2001 and the Financial Services Development Act, 2001. GBCs are permitted to carry out business with both domestic and non-domestic companies and/or individuals. Most importantly, once having obtained a Tax Residence Certificate from the FSC, they can enjoy the benefits of the Mauritian double taxation treaty network ...
AUTHORISED COMPANIES (AC’s)
An AC is equivalent to an ‘international business corporation’ or IBC in other countries. Such companies are not subject to the Mauritian tax regime but also do not benefit from its double taxation treaty network. Such companies must conduct business primarily outside of Mauritius whilst directors and shareholders can be non-residents. In particular, management and control must be shown to be outside of Mauritius. There are however restrictions on what services they can provide namely banking, financial services, trustee services or other services for companies).
MAURITIUS COMPANIES WHY & FOR WHOM?
TAX PLANNING BENEFITS
- Safe and stable location off the southeastern African coast.
- Extensive Double Taxation Treaty Network – Mauritian limited companies that are locally managed and controlled will benefit from an extensive tax treaty network. In particular, Mauritius has an excellent tax treaty with India not to mention most of Europe and Africa.
- Excellent reputation – Mauritius has an excellent reputation and has had few of the negative associations that other countries may have had regarding money laundering and/or tax evasion.
- Gaming, Shipping and Aircraft Registrations – Mauritius offers a very attractive regulatory and registration regime for gaming, shipping and aircraft registration.
- International banks located in Mauritius – There is a comprehensive range of international and local banks available in Mauritius with many being known for their efficiency.
- Well educated professionals – Mauritius has well educated professionals mostly educated in French and UK universities.
- English is the business language – English is the dominant language in commerce with French creole being spoken as a first language on a day-to-day basis.
- The legal system is mostly common law based – The company formation, business and regulatory legal system in Mauritius is primarily common law based and very much influenced by that of England and Wales.
DOUBLE TAXATION TREATY NETWORK
The Mauritius double taxation treaty network is one of the largest in southern Africa and currently has concluded 46 treaties and is a party to a series of treaties under negotiation. As already stated, its treaty network is particularly attractive for those who have personal or business interests in the sub-continent.
MAURITIUS COMPANIES
Ratings
Corporate registration efficiency
$5
Cost
$4
Confidentiality
$5
Local Banking facilities
$5
Legal system
$5
Political stability
$5
Reputation
$5
TAX PLANNING CREDENTIALS
Companies Benefits
- Extensive Double Taxation Treaty Network – Mauritius limited companies that are locally managed and controlled will benefit from some 46 double taxation treaties that it has with other countries.
- Excellent reputation – Mauritius has an excellent reputation and has had few of the negative associations that other countries may have had regarding money laundering and/or tax evasion.
- Gaming, Shipping and Aircraft Registrations – Mauritius offers a very attractive regulatory and registration regime for gaming, shipping and aircraft registration.
- International banks located in Mauritius – There is a comprehensive range of international and local banks available.
- Well educated professionals – Malta has a well-educated professional mostly educated in French and UK universities.
- English is the business language – English is the dominant language in commerce throughout Mauritius.
- The commercial and regulatory legal system is mostly common law whilst civil affairs are primarily based on the French civil law system.
MAURITIUS MANAGED COMPANIES
BASIC FACTS: In synopsis, the corporate tax rate for 2026 for Mauritian companies is as follows:
STANDARD COMPANY RATES OF TAX
THE STANDARD CORPORATE TAX RATE FOR MAURITIUS IS 15% AND IS GENERALLY BASED ON WORLDWIDE INCOME.
However, apart from enjoying the universal 15% corporate tax rate, it should also be noted that a GBC can, although individual circumstances may vary, benefit from an 80% exemption potentially bringing the corporate tax rate down to 3%. The tax benefits in Mauritius include:
- Foreign sourced dividends (subject to tax treaty provisions and enforced deductions)
- Foreign sourced income
- Foreign permanent establishment or branch profits
- Income derived from shipping and aircraft leasing GBC’s
- No withholding taxes on declared dividends
- No capital gains taxes on the disposal of foreign assets
- Potential to claim foreign tax credit against actual tax suffered abroad at the rate of 80%
- No exchange control for the transfer of capital or gains
