MAURITIUS Law and Practice Contributed by: Sameer K. Tegally, Sonia Xavier and Ashvan Luckraz, Venture Law
as well as attributable dividend shares from sociétés or successions, subject to specified exclusions. Similarly, leviable income includes the individual’s chargeable income together with qualifying divi - dends and attributable dividend shares, but excludes dividends from global business entities and certain exempt lump sums, including pension commutations, death gratuities and compensation payments. Fair Share Contribution (Companies) Every company whose supplies exceed Rs 24 mil - lion in an accounting year or which is required to be registered under the VAT Act, and whose chargeable income exceeds MUR24 million, is liable to pay a fair share contribution in respect of income derived for the period 1 July 2025 to 30 June 2028. The contribution applies in addition to income tax and is calculated on chargeable income. The rate of contribution is 2% of chargeable income for companies subject to the 3% income tax rate, and 5% of chargeable income for companies subject to the 15% income tax rate, including banks. Banks are also subject to an additional fair share contribution of 2.5% on chargeable income arising from transactions with residents (excluding global business entities). Companies must submit quarterly statements and make corresponding payments during the year, with a final reconciliation in the fourth quarter based on annual chargeable income. Late payment attracts a penalty of 2.5% of unpaid tax and interest at 0.25% per month or part thereof. 5.2 Taxes Applicable to Businesses A corporation resident in Mauritius is subject to tax on its worldwide income. A non-resident corporation is liable to tax on any Mauritius-source income, subject to any applicable tax treaty provisions. Corporations are liable to income tax on their net income, currently at a flat rate of 15%. Partnerships Limited partnerships are tax transparent and are there - fore not taxable under the laws of Mauritius, unless they hold a global business licence (GBL), in which case they can elect to be taxpayers. Where a limited
partnership is tax transparent, only the partners who are residents of Mauritius are liable to pay tax in Mau - ritius at the rate of 15% (subject to any available tax credit or exemption). Limited partners who are non- residents of Mauritius are only liable to 15% tax on income that is derived in Mauritius but have no tax liability on foreign-source income. Trusts and Foundations The income tax laws make a distinction between resi - dent and non-resident trusts and between a resident foundation and a non-resident foundation. A non- resident trust is a trust of which the settlor and the beneficiaries are not resident in Mauritius, or in the case of a purpose trust, where such purpose is car - ried out wholly outside Mauritius. Such trusts are not subject to taxation in Mauritius. A foundation will be non-resident when the founder is a non-resident and all the beneficiaries appointed under the terms of a charter or a will are, throughout an income year, non-resident in Mauritius. A non-res - ident foundation is exempt from taxation in Mauritius. A non-resident trust or foundation has to file a decla - ration of “nonresidency” on an annual basis with the MRA. Charitable trusts and foundations are also exempt from income tax in Mauritius. A non-charitable trust, a non-charitable foundation or a non-charitable insti - tution that is tax resident in Mauritius is taxable on its chargeable income at the rate of 15% per annum, although it will be entitled to tax credits on foreign tax paid or a partial exemption of 80% of the Mauritius tax liability on certain specific types of income. Export of Goods Companies engaged in the export of goods are lia - ble to be taxed at the rate of 3% on the chargeable income attributable to that export based on a pre - scribed formula. The benefit of the reduced income tax rate of 3% has been extended to freeport opera - tors and private freeport developers engaged in the re-treating of used tyres and recycling of waste meant for the local market.
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