MAURITIUS Law and Practice Contributed by: Johanne Hague, Ashwin Mudhoo, Medina Torabally and Yushrah Bayjou, CMS Prism in association with CMS
CMS Prism Level 7 IconEbene Rue de L’Institut Ebene Mauritius Tel: +230 403 0900 Email: johanne.hague@cms-prism.com Web: www.prismchambers.com
1. Tax 1.1 Tax Regimes Taxation of Individuals
There is no donation or gift tax in Mauritius; therefore, assets (other than immovable property) can be freely donated without incurring any taxes. There is also no inheritance, estate or succession tax in Mauritius. Transfer Taxes on Immovable Property Land transfer taxes and registration duty apply to the transfer of immovable property in Mauritius. However, there is an exemption for immovable property trans - ferred to the heirs of a deceased individual for inherit - ance purposes or, in certain cases, the settlement of immovable property into a trust. Taxation of Trusts and Foundations Under current legislation, trusts and foundations are treated as companies for tax purposes in Mauritius. This means that a trust or a foundation (other than a charitable trust or foundation) would typically be sub - ject to tax at the headline rate of 15% on its worldwide chargeable income. A partial exemption regime is applicable to specific types of income such as foreign dividends or interest income (subject to substance requirements being met). As from the year of assessment starting on 1 July 2024, trusts or foundations having a turnover above MUR50 million are subject to a 2% corporate climate responsibility levy. Starting July 1, 2025, companies with annual sup - plies and chargeable income over MUR 24 million are also required to pay a Fair Share Contribution. Non- banking companies will contribute 5% or 2% of their
Individuals resident in Mauritius are taxed on their worldwide chargeable income. However, foreign- sourced income is only taxed once it is remitted to Mauritius. With effect from 1 July 2025, the personal income tax system has been revisited to implement a simplified three-tiered tax band from the previous 11 tax bands. The new system provides for the lowest bracket of up to MUR500,000 (previously MUR390,000) hav - ing a tax rate of 0% while the highest bracket, above MUR1,000,000, attracts a tax rate of 20%. Charge - able income in between these two brackets is taxable at 10%. The law has now introduced a “Fair Share Contribu - tion” of 15% on individuals whose total annual income including local dividends (which are usually exempt from income tax) exceeds MUR 12 million. This con - tribution applies only to the portion of leviable income that exceeds the MUR 12 million threshold. This measure is applicable for income earned during the three income years ending on 30 June 2028 and be payable as part of the individual’s annual income tax return. No tax is levied on capital gains in Mauritius.
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