The Fiscal Policy in Mauritius is straightforward and the Mauritius Revenue Authority generates its revenue mainly through Income Tax and Value Added Tax.
Income Tax
Income tax is charged in Mauritius at a flat rate of 15% and this applies to both individuals and companies.
However, a Category 1 Global Business Company is entitled to a presumed tax credit of 80% on its tax liability and this therefore brings its net effective tax rate to 3%. Category 2 Global Business Company are not taxable in Mauritius.
Tax Year for individuals runs from 01 July to 30 June and the income tax return should be filed by 30 September.
Tax Year of Companies is similar to the Companies' accounting year. Tax return and payment of tax should be done within 6 months of their balance sheet date.
Value Added Tax
There is two types of supplies in Mauritius - first one being exempt supply and the second one is taxable supplies.
- Exempt supplies are all sales which are exempted from VAT. For example, sale of basic needs such as rice, flour, etc.
- Taxable supplies is of two types. First one being Zero rated and the second one being 15%. Exports are considered as zero rated taxable supplies.
Companies having an annual turnover exceeding Rs 6 million should mandatorily register for VAT and also applies a VAT of 15% on all their sales.
- Exempt supplies are all sales which are exempted from VAT. For example, sale of basic needs such as rice, flour, etc.
- Taxable supplies is of two types. First one being Zero rated and the second one being 15%. Exports are considered as zero rated taxable supplies.
Companies having an annual turnover exceeding Rs 6 million should mandatorily register for VAT and also applies a VAT of 15% on all their sales.
If turnover exceeds Rs 10 million - VAT return is to be submitted on a monthly basis. If not, then the return should be submitted on a quarterly basis.
Why choose a Mauritius Category 1 Global Business Company as the structure to route your investment?
First Reason (Capital Gain Tax) - There is no capital gain tax in Mauritius. As such, it is in the interest of investors to opt for a Mauritius Category 1 Global Business Company to route their investment.
Second Reason (Withholding Tax) - There is no withholding tax in Mauritius when a Category 1 Global Business Company pays royalty, dividend and interest to a non resident individual/company.
Third Reason (Income Tax) - Tax on profit is only at 3%. This is lower than other jurisdictions but this minimum rate also ensure that Mauritius is not considered as a tax heaven.
Fourth Reason (Foreign Exchange Regulations) - There is no foreign exchange regulations in Mauritius which allows for the free transfer of foreign exchange currencies in any amount
Fifth Reason (Language Barrier) - Mauritians speak both English and French and the most of them speak a third language which can be Hindi, Urdu and Mandarin.
Sixth Reason (Banks) - There is a variety of banks which clients can choose as their banking partner. Clients can have access to internet banking and operate their bank accounts online. Payment are done with same day value, debit and credit cards can be applied with nearly all banks.
Seventh Reason (Confidentiality) - Details on the beneficial owners and shareholders of the Company is NOT publicly accessible. Only the Financial Services Commission, which is the regulator, have access to these info.
Eighth Reason - (Qualified Individuals) - More than 90% of the population of Mauritius are literate. The global business sector in Mauritius employs professionals which include qualified accountants, tax experts, lawyers, bankers, etc. It is good to note that the Big 4 audit firms are all present on the island and legal firms such as Appleby and Eversheds all have offices here.
Ninth Reason - (Connectivity and Infrastructure) - Mauritius has a good infrastructure with internet fibre optics cable having been implemented everywhere. In terms of flight connection, Mauritius has direct flights with many countries in Europe, Asia and Africa. Companies such as Emirates, Turkish Airline, British Airways and Air France are all coming to Mauritius.
Tenth Reason - (Cost) - The cost of setting up a Category 1 Global Business Company in Mauritius approximates USD 9,000 with the subsequent yearly fees approximating USD 6,000.
Third Reason (Income Tax) - Tax on profit is only at 3%. This is lower than other jurisdictions but this minimum rate also ensure that Mauritius is not considered as a tax heaven.
Fourth Reason (Foreign Exchange Regulations) - There is no foreign exchange regulations in Mauritius which allows for the free transfer of foreign exchange currencies in any amount
Fifth Reason (Language Barrier) - Mauritians speak both English and French and the most of them speak a third language which can be Hindi, Urdu and Mandarin.
Sixth Reason (Banks) - There is a variety of banks which clients can choose as their banking partner. Clients can have access to internet banking and operate their bank accounts online. Payment are done with same day value, debit and credit cards can be applied with nearly all banks.
Seventh Reason (Confidentiality) - Details on the beneficial owners and shareholders of the Company is NOT publicly accessible. Only the Financial Services Commission, which is the regulator, have access to these info.
Eighth Reason - (Qualified Individuals) - More than 90% of the population of Mauritius are literate. The global business sector in Mauritius employs professionals which include qualified accountants, tax experts, lawyers, bankers, etc. It is good to note that the Big 4 audit firms are all present on the island and legal firms such as Appleby and Eversheds all have offices here.
Ninth Reason - (Connectivity and Infrastructure) - Mauritius has a good infrastructure with internet fibre optics cable having been implemented everywhere. In terms of flight connection, Mauritius has direct flights with many countries in Europe, Asia and Africa. Companies such as Emirates, Turkish Airline, British Airways and Air France are all coming to Mauritius.
Tenth Reason - (Cost) - The cost of setting up a Category 1 Global Business Company in Mauritius approximates USD 9,000 with the subsequent yearly fees approximating USD 6,000.
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