MAURITIUS Law and Practice Contributed by: Fayaz Hajee Abdoula, Yashna Munbauhal and Yojna Beesoon, BLC Robert & Associates
2.7 Capital Gains There are no capital gains taxes in Mauritius. Any gains realised by a non-resident or resident corporation on the disposal of its shares in a company shall not be liable to tax in Mauritius. However, where a transaction is in the nature of trade, any gains derived from that transaction may be assessed and taxed as income. 2.8 Other Taxes on Transactions Land transfer tax shall apply on a transfer of shares in a company holding immovable property to the extent that such transfer results in a change in control. Land transfer tax shall be levied at the rate of 5% on the value of the shares transferred or at the option of the transferor and transferee jointly, in such proportion as the number of shares transferred bears to the total number of shares issued by the company, without tak - ing into account the number of shares, if any, issued to the transferee during the period of three years imme - diately preceding the date of transfer, on the open market value of the immovable property comprised in the assets of the company or on the value of the shares transferred, whichever is the lower. Leasehold tax is also levied on the transfer of shares in a company that reckons among its assets any lease - hold rights in state land at the rate of 20%. Leasehold tax is paid by the transferor and the transferee in equal proportion. A registration duty of 5% is levied on any transfer of shares in any company or successive company that reckons among its assets any freehold or leasehold immovable property. Registration duty shall be levied at the rate of 5% on the value of the shares transferred or at the option of the transferor and transferee jointly, in such proportion as the number of shares transferred bears to the total number of shares issued by the company, without tak - ing into account the number of shares, if any, issued to the transferee during the period of three years imme - diately preceding the date of transfer, on the open market value of the immovable property comprised in the assets of the company or on the value of the shares transferred, whichever is the lower.
• income derived from activities of a company hold - ing a global headquarters administration licence is tax-exempt for a period of eight income years, counting from the income year in which the corpo - ration was granted its licence; and • income of a company with a global treasury activities licence or a global legal advisory services licence, issued on or after 1 September 2016 by the Financial Services Commission in Mauritius, is tax-exempt for a period of five income years count - ing from the income year in which the corporation was granted its licence provided that the income is derived from the activities covered under the licence and the company satisfies conditions of minimum employment and substance of activities, as specified by the Financial Services Commission of Mauritius. 2.4 Loss Relief If an entity has incurred a loss in a given income year when computing its net income for that year, it may deduct that loss. Subject to certain conditions, if the amount of loss cannot be fully relieved, the entity is entitled to claim that the unrelieved amount of the loss be carried forward and set off against its net income derived in the following five income years. The time limit to carry forward the losses in the follow - ing five income years does not apply for the amount of loss attributable to annual allowance claimed in respect of capital expenditure incurred on or after 1 July 2006. 2.5 Deduction of Interest Deduction of expenditure on interest is allowed under the Income Tax Act 1995, provided that the expendi - ture is incurred in respect of capital employed exclu - sively in the production of income. The tax authorities may not allow deductions in respect of expenditure incurred as interest where the interest is: • to a non-resident who is not chargeable for tax on the amount of the interest; or • not likely to be paid in cash within a reasonable time. 2.6 Consolidated Tax Grouping There is no applicable information in this jurisdiction.
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