MAURITIUS Law and Practice Contributed by: Johanne Hague, Ashwin Mudhoo, Medina Torabally and Yushrah Bayjou, CMS Prism – in association with CMS
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 regulated 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;
QDMTT regulations which will confirm the computa - tion of the top-up tax. A “covered person” is defined as an entity which: • is a member to whom QDMTT applies; • is located in Mauritius or is the UPE of the MNE group and is incorporated in Mauritius; • is a member of the same MNE group or is a joint venture of the member’s UPE or a joint venture subsidiary; and • is not an excluded person. All covered persons are required to notify the Direc - tor-General not later than six months from the end of the fiscal year of the identification of the desig - nated person resident in Mauritius responsible for fil - ing the QDMTT return. The designated person must be a company forming part of the MNE group and resident in Mauritius. The notification return does not apply to members of MNE groups that are not resident in Mauritius. Excluded persons include certain enti - ties such as government bodies, pension funds and investment funds. The 2026/2027 Budget Speech announced as clarifi - cation that an investment fund and a real estate invest - ment vehicle will be exempted from the QDMTT if they are the parent entity of an MNE. This amendment will be deemed to be effective as from 1 July 2025. 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. 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.
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