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
On 19 June 2026, the Prime Minister and Minister of Finance of Mauritius gave the 2026/2027 Budget Speech, announcing, among the principal legislative measures announced, a new tax band. 20% income tax will be applicable to chargeable income exceeding MUR1 million up to MUR12 million while any charge - able income in excess of MUR12 million will be taxed at 35%. This last tax band will replace the Fair Share Contribution for individuals. This proposed measure is subject to parliamen - tary debates, which may lead to amendments prior to being included in the Finance Act 2026, and the Income Tax Act 1995 amended. No tax is levied on capital gains in Mauritius. 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.
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 three-band tax system simplified from the previous 11 tax bands. The new system provides for the lowest bracket of up to MUR500,000 (previously MUR390,000) having a tax rate of 0% while the highest bracket, above MUR1 million, attracts a tax rate of 20%. Chargeable 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 MUR12 million. This con - tribution applies only to the portion of leviable income that exceeds the MUR12 million threshold. For the purposes of the Fair Share Contribution, divi - dends or distributions received from global business entities are excluded from the computation of both the income threshold and the leviable income. This measure is applicable for income earned during the three income years ending on 30 June 2028 and is payable as part of the individual’s annual income tax return.
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