MAURITIUS Law and Practice Contributed by: Sameer K Tegally, Sonia Xavier and Ashvan Luckraz, Venture Law
Corporate Social Responsibility (CSR) Every year, a company has to set up a CSR fund equivalent to 2% of its chargeable income of the preceding year. Following the budget 2025/2026, the govern - ment intends to allow companies to spend up to 50% of their CSR fund, an increase from the current maximum of 25%. Value-Added Tax (VAT) VAT shall be charged at the standard rate of 15% on all taxable goods and services, except certain food items that are zero-rated. A person who makes taxable supplies in the course of their business and whose annual turnover exceeds or is likely to exceed MUR6 million is required to register for VAT on a com - pulsory basis. Following the measures announced in the 2025–2026 Budget, the government proposes to amend the applicable legislation to reduce the threshold for mandatory VAT registration from MUR6 million to MUR3 million in annual turno - ver, with effect from 1 October 2025. Additionally, certain service providers (eg, accountants and auditors, attorneys and solici - tors, consultants, surveyors, valuers) must be VAT registered irrespective of their turnover. The Finance Act introduced the arm’s-length principle to VAT. The reverse charge provision on supply of ser - vices received from abroad has been amended such that it is now applicable only if: • the taxable supply performed or utilised in Mauritius is made by a person who does not
belong in Mauritius and is not VAT registered; and • the recipient of the supply is a VAT-registered person. The supply of digital or electronic services by a foreign supplier to a person in Mauritius will be subject to VAT. Where a VAT-registered person is engaged in a project spanning several years and the MRA is of the opinion that the apportionment of input tax between taxable supplies and exempt sup - plies on a prorated basis is not appropriate, it may require the registered person to apply an alternative basis of apportionment for input tax. Local Income Taxes Local income taxes levied by a local adminis - tration, such as urban councils, do not exist in Mauritius. Corporate Withholding Taxes There are no withholding taxes (WHTs) in Mau - ritius for payments made by GBL companies to non-residents not carrying out any business in Mauritius. There is no WHT on dividends received from resident companies or on pay - ments made by a company having an annual turnover of less than MUR6 million. The following withholding tax rates are applica - ble to certain other income streams: • interest payable by any persons (other than banks or non-bank deposit-taking institutions operating under the Banking Act) to individu - als and non-resident companies – 15%; • royalties payable to (i) residents – 10%, and (ii) non-residents – 15%; • rent payable to (i) residents – 5%, and (ii) non- residents – 10%;
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