MAURITIUS Trends and Developments Contributed by: Michael Hough and Keshini Soborun, Eversheds Sutherland
case revolved around a dispute between the Indian tax authorities and the Mauritius entities of the Tiger Global Group in relation to the sale of shares held by the Tiger Global Group in Flipkart Pvt Ltd, a Singapore entity, in 2018. In its judgment, the Supreme Court of India ruled that the tax residency certificate held by the Mauri - tius entities of Tiger Global Group was insufficient to benefit from the double taxation avoidance agreement between Mauritius and India. Such treaty benefits and the grandfathered protection provisions, which pro - vided an exemption on capital gains tax on shares acquired prior to 1 April 2017, were not applicable under the agreement, and ultimately a tax residency certificate on its own is not sufficient proof to claim tax treaty benefits under the agreement – rather, it must be weighed against other substance considerations. This judgment poses a risk to Indian investors and companies looking to engage in M&A transactions; it casts doubt over the advantages of a tax residen - cy certificate in Mauritius, which offers tax benefits under the India-Mauritius double taxation avoidance agreement. In particular, the ruling may require Indian companies to assess their ability to do business in Mauritius while remaining tax efficient. Practical Recommendations for Acquirers, Investors and Advisers The Mauritius M&A landscape is influenced by macro - economic conditions, particularly interest rates, debt availably, foreign exchange translation and currency movements. These factors affect the discount rates that are used to value companies, how much debt buyers can raise and how financial results translate across currencies. As a result, buyers who earn and borrow in US dollars or euros may have a different risk profile and stronger purchasing power (albeit with foreign exchange volatility risks) relative to those who operate and exchange only in Mauritian rupees (and who may face different financing constraints).
In terms of acquisitions, a buyer should differentiate between a company that operates in Mauritius and a Mauritius company utilised as a holding or investment platform, as these two categories have dissociable commercial and valuation considerations. For exam - ple, where the value of the deal emanates from off - shore holding platforms, the buyer’s due diligence and valuation will focus on international tax rules (includ - ing the OECD Pillar Two and double taxation avoid - ance agreements), beneficial ownership requirements, and anti-money laundering compliance standards as opposed to the local business’s performance metrics. On the other hand, transaction advisers should place an emphasis on strong disclosure and documentation production as a competitive advantage for their client. Looking Ahead to 2026 and Beyond The high-value deals completed in 2025–26 suggest Mauritius has a role as a preferred jurisdiction for structuring and investment in Africa. Strong private equity inflows, COMESA’s new suspensory merger regime and the anticipated changes to the Mauritius competition framework, enhanced ESG disclosure rules, and increased emphasis on regulatory and sector approvals have increased deal complexity while strengthening investor confidence that Mau - ritius possesses the legislative and regulatory tools and resources to successfully and efficiently enable buyers and sellers to complete their M&A transac - tions. Looking ahead, Mauritius is well-positioned to continue growing, given the recent momentum in deal activity and continued reforms, and is likely to attract greater volumes of cross-border and local transac - tional activity.
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