Mauritius

Mauritius

Reforms in the taxation regime of Global Business Companies

14 Jun 2018

The Budget Speech for 2019 presented in June 2018 introduces reforms in the taxation regime of Global Business Companies: • A partial exemption regime will replace the deemed foreign tax credit system as from 1 January 2019; • A partial exemption regime will be implemented whereby all Category 1 Global Business Companies (“GBL1”), subject to satisfying pre-defined substantial activities requirements imposed by the Financial Services Commission, will be granted an income tax exemption at the rate of 80% on the following income: Foreign source dividends and profits attributable to a foreign permanent establishment; Interest and royalties; and Income derived from provision of specified financial services. • Where partial exemption is not available, GBL1 will benefit from the current foreign tax credit system (for taxes suffered on foreign source income); • Profits derived from global trading activities will be taxed at a reduced rate of 3%; • The Category 2 Global Business regime will be abolished as from 1 January 2019; • The current regime will continue to apply until 30 June 2021 for companies which have been issued a licence prior to 16 October 2017.

Nature of measure:
  • Incentives
Type:
  • Treatment and operation (Other)
Industry:
  • Not industry specific
Inward FDI:
No
Outward FDI:
No
Sources: