MAURITIUS Law and Practice Contributed by: Johanne Hague, Ashwin Mudhoo, Medina Torabally and Yushrah Bayjou, CMS Prism – in association with CMS
estate in such schemes. However, land transfer tax and registration duty are still applicable. Settlement of Immovable Property Into a Trust Exemptions from registration duty and land transfer tax may apply if real estate located in Mauritius is set - tled into a trust. Generally, amendments are brought to the tax laws every year by way of the Finance (Miscellaneous Pro - visions) Act (FA). The FA gives effect to the measures announced in the yearly budget speech delivered by the Minister of Finance, Economic Planning and Development. Secondary tax legislation may also be passed or amended by way of regulations throughout the year. Trusts and Foundations 1.6 Stability of Tax Laws Amendments by Legislation In addition, the regime for the taxation of trusts and foundations was amended in 2021 to tackle concerns raised by the OECD regarding some potentially harm - ful tax features of the previous regime. Certificates of non-residents can no longer be filed by trusts or foundations set up in Mauritius (subject to a tempo - rary grandfathering provision). The Mauritius Revenue Authority, through a Statement of Practice, clarified that a trust or a foundation can still be considered non-resident if certain criteria are met. It is expected that the law will be amended to provide a clear position on the tax treatment of trusts and foundations. There is ongoing dialogue between the industry and the regulators to ensure that any future amendments do not jeopardise the status of Mauritius as a jurisdiction of choice for estate and wealth planning. 1.7 Transparency and Increased Global Reporting Base Erosion and Profit Shifting (BEPS) Minimum Standards Mauritius has been a member of the Inclusive Frame - work since November 2017 and has committed to implement the BEPS minimum standards. The tax leg - islation in Mauritius was overhauled in 2018 to achieve compliance with recommendations on BEPS Action
5 (Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance). The revamped fiscal legislation is now aligned with the recommendations of the Forum on Harmful Tax Practices. Certain regimes, such as the deemed foreign tax cred - it and the freeport regimes, were considered to have potentially harmful tax features and were therefore abolished. Substance requirements have also been introduced for entities that intend to benefit from the partial tax exemption. The change in the tax regime of trusts and foundations was also made to meet the country’s commitment to the OECD initiative to eliminate harmful tax regimes (as explained in 1.6 Stability of Tax Laws ). 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 beginning 1 July 2025, Mauritius has introduced the Qualified Domestic Minimum Top-Up Tax (QDMTT) as part of its adoption of the OECD’s GloBE Rules under Pillar Two. The QDMTT is a tax imposed on resident companies forming part of multinational enterprise (MNE) groups having consolidated annual revenue of EUR750 mil - lion or more in at least two of the four fiscal years immediately preceding the fiscal year of the Ultimate Parent Entity (UPE). The UPE is an entity that owns directly or indirectly a controlling interest in any other entity and is not itself owned, with a controlling inter - est, directly or indirectly by another entity. In the case of a group that is a single entity with one or more for - eign permanent establishments, the UPE is the main entity of the group. The fiscal year of the UPE is the accounting period used in the consolidated financial statements, or the calendar year where consolidated financial statements are not prepared. 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. Mauritius has, however, still not enacted any
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