MAURITIUS Law and Practice Contributed by: Sameer K Tegally, Sonia Xavier and Ashvan Luckraz, Venture Law
Partnerships Limited partnerships are tax transparent and are therefore not taxable under the laws of Mauritius, unless they hold a GBL, in which case they can elect to be taxpayers. Where a limited partner - ship is tax transparent, only the partners who are residents of Mauritius are liable to pay tax in Mauritius at the rate of 15% (subject to any available tax credit or exemption). Limited part - ners who are non-residents of Mauritius are only liable to 15% tax on income that is derived in Mauritius but have no tax liability on foreign- source income. Trusts and Foundations The income tax laws make a distinction between resident and non-resident trusts and between a resident foundation and a non-resident foun- dation. A non-resident trust is a trust of which the settlor and the beneficiaries are not resident in Mauritius, or in the case of a purpose trust, where such purpose is carried out wholly outside Mauritius. Such trusts are not subject to taxation in Mauritius. A foundation will be non-resident when the founder is a non-resident and all the beneficiaries appointed under the terms of a charter or a will are, throughout an income year, non-resident in Mauritius. A non-resident foundation is exempt from taxation in Mauritius. A non-resident trust or foundation has to file a declaration of “non - residency” on an annual basis with the MRA. Charitable trusts and foundations are also exempt from income tax in Mauritius. A non- charitable trust, a non-charitable foundation or a non-charitable institution that is tax resident in Mauritius is taxable on its chargeable income at the rate of 15% per annum, although it will be entitled to tax credits on foreign tax paid or
a partial exemption of 80% of the Mauritius tax liability on certain specific types of income. Export of Goods Companies engaged in the export of goods are liable to be taxed at the rate of 3% on the chargeable income attributable to that export based on a prescribed formula. The benefit of the reduced income tax rate of 3% has been extended to freeport operators and private freeport developers engaged in the re-treating of used tyres and recycling of waste meant for the local market. Société Resident société A resident société is not liable to tax. Instead, every associate of the société is liable to tax on his/her share of income, whether distributed or not. Non-resident société A non-resident société shall be liable to income tax as if the société were a company and shall pay income tax on its chargeable income at a rate of 15%. Companies Holding a Global Business Licence (GBL) GBL-holding companies are taxed at the normal rate of 15%, except for an income tax exemp - tion of 80%, which applies to foreign dividends, foreign-source interest income, profit attribut - able to a permanent establishment of a resident company in a foreign company, foreign-source income derived from a collective investment scheme (CIS), closed-end funds, CIS managers, CIS administrators, investment advisers or asset managers licensed or approved by the FSC and income derived by companies engaged in ship and aircraft leasing.
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