MAURITIUS Law and Practice Contributed by: Johanne Hague, Ashwin Mudhoo, Medina Torabally and Yushrah Bayjou, CMS Prism in association with CMS
Mauritius is “white-listed” by both the OECD and the EU in respect of compliance with BEPS minimum standards. Taking effect since the year of assessment 1 July 2025, Mauritius has introduced the Qualified Domestic Mini - mum Top-Up Tax (“QDMTT”) as part of its adoption of the OECD’s GloBE Rules under Pillar Two. It applies to entities within multinational enterprise groups with consolidated annual revenues of at least EUR 750 mil - lion in at least two of the four fiscal years before the assessment year. The QDMTT ensures a minimum effective tax rate of 15% on income earned by covered entities. If the actual tax paid is below this threshold, a top-up tax is imposed. Covered persons exclude certain entities like government bodies, pension funds, and invest - ment funds. We are currently awaiting the detailed regulations to confirm the precise scope of applica - tion of the QDMTT. Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) Mauritius is a signatory to the CRS and has been exchanging information under the CRS framework since 2018. Mauritius and the USA have signed and implement - ed a Model 1 Inter-Governmental Agreement for the exchange of information under FATCA legislation. Country-by-Country Reporting In addition to the above, Mauritius exchanges infor - mation under the Country-by-Country Reporting framework. Other Exchange of Information Mauritius also has a wide tax treaty network which allows for exchange of information on request. 2. Succession 2.1 Cultural Considerations in Succession Planning Traditionally, very few families make succession plans. In the absence of a will, the law of succession as reg -
ulated under the Mauritian Civil Code (the “Code”) would then be applicable to the distribution of the estate. This includes the application of forced heir - ship rules (meaning that a fixed portion of a parent’s estate is reserved for their children on their death). As a result, the number of inheritance disputes before Mauritian courts is not negligible, and this is mainly due to lack of succession planning and the impact of the forced heirship rules. Forced heirship is dealt with in more detail in 2.3 Forced Heirship Laws . In recent years, however, there has been increasing awareness of the subject (partly driven by the rise of the middle and upper classes), and more families have begun to acknowledge the importance of planning their succession. It is expected that the number of such disputes will decrease as a result of the current trend towards succession planning. As the size of families grows, the tools used for suc - cession planning need to become more sophisticated. Given that there is a higher potential for disputes in larger families, it is more appropriate to make use of flexible tools that decrease, but do not eliminate, the potential for disputes. 2.2 International Planning There are several factors that are taken into account when planning a succession. These factors include: • the expenses associated with the setting up and maintenance of succession tools; • the enforcement requirements; • the different taxes that are applicable when pass - ing on property; • the likelihood of future disputes; and • compliance with the succession laws of relevant jurisdictions. Conflict of Laws For example, if a non-citizen wishes to relocate to Mauritius and possesses assets in a different jurisdic - tion, the individual will have to ensure that the suc - cession planning complies with Mauritian succession laws and does not encroach upon forced heirship rules (see 2.3 Forced Heirship Laws ).
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