MAURITIUS Law and Practice Contributed by: Fayaz Hajee Abdoula, Yashna Munbauhal and Yojna Beesoon, BLC Robert & Associates
3.4 Taxation of Individuals on Shares in Closely Held Corporations There are no capital gains taxes in Mauritius. Any gains realised by individuals on the disposal of shares in a closely held corporation are not liable to tax in Mauritius. However, where the nature of a transaction is characterised by trading activity, any gains derived from that transaction may be assessed and taxed as income. There is no withholding tax on dividends paid by resi - dent companies to individuals. 3.5 Taxation of Individuals on Shares in Public Corporations There are no capital gains taxes in Mauritius. Any gains realised by individuals on the disposal of shares in a publicly traded corporation are not liable to tax in Mauritius. However, where the nature of a transaction is characterised by trading activity, any gains derived from that transaction may be assessed and taxed as income. 4. Taxation of Inbound Investments 4.1 Application of Withholding Taxes Interest Interest payable by any person, other than by a bank or non-bank deposit-taking institution under the Banking Act 2004, to any non-resident is subject to a withholding tax of 15%. Interest payable to a non-resident not carrying on any business in Mauritius by a corporation holding a glob - al business licence out of its foreign source income is not subject to withholding taxes. There are no withholding taxes on interest paid to a Mauritius resident. Dividend There are no withholding taxes on dividends in Mau - ritius. Royalties Royalties payable to residents are subject to a with - holding tax of 10%. Royalties payable to non-resi -
The transfer of shares in any company, the securities of which are quoted on the Official List of the Stock Exchange of Mauritius, and the transfer of shares in a company holding a global business licence that does not reckon among its assets any freehold or immov - able property in Mauritius, are exempted from regis - tration duty. 2.9 Other Notable Taxes Incorporated businesses must, on an annual basis, set up a corporate social responsibility fund equivalent to 2% of their chargeable income in the preceding year. Incorporated businesses are also subject to a corpo - rate climate responsibility levy of 2% of their charge - able income (if its annual turnover exceeds MUR50 million). In respect of income derived from 1 July 2025 to 30 June 2028, every company, other than a bank, having (i) supplies exceeding MUR24 million in an accounting year or is required to be registered under the Value Added Tax Act, and (ii) chargeable income exceeding MUR24 million in an accounting year must pay to the MRA a fair share contribution of 5% (if it pays tax at 15%) or 2% (if it pays tax at 3%) of its chargeable income. 3. Corporations and Non-Corporate Businesses 3.1 Form of Closely Held Local Businesses Most closely held local businesses operate in corpo - rate forms. 3.2 Individual and Corporate Rates There are no specific rules in Mauritius preventing individual professionals from earning income through corporate entities. Most closely held local businesses operate in corporate forms. 3.3 Restrictions on Retention of Earnings by Closely Held Corporations There are no specific rules preventing closely held cor - porations from accumulating earnings for investment purposes.
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