MAURITIUS Law and Practice Contributed by: Johanne Hague, Gaelle Angoh Li Ying Pin, Medina Torabally and Béatrice Phanjoo, CMS Prism in association with CMS
(TDS) at a rate of 7.5% for residents and 10% for non-residents. TDS is applicable when the rental payment exceeds MUR500 per transaction. Generally, payments made by individuals are not subject to TDS unless the rental is for business purposes. Sales of immovable property undertaken in the course of business will be tantamount to the income derived from such sale being generally taxable at the rate of 15%. However, a sale of immovable property not undertaken as trade shall not attract any tax inasmuch as capital gains are not taxable in Mauritius. 3.2 Business Profits Resident companies are generally subject to the headline rate of 15% on their worldwide chargeable income subject to any credits or exemptions that may be applicable. The chargeable income is defined as net income, which is the amount remaining after allowable deductions from the gross income. Exemptions and deductions may be applicable depending on the type of income or activity. For instance, companies involved in the import and export of goods are subject to a reduced rate of tax of 3%. Certain incentivised sectors also benefit from tax holi - days. Specific partial exemptions are also applicable to des - ignated types of income such as foreign dividends or interest income subject to substance requirements being met. Fair Share Contribution The Fair Share Contribution (FSC) was introduced in the ITA 1995 in August 2025 and is applicable to companies having a turnover exceeding MUR24 mil - lion, and is applicable as from the year starting 1 July 2025 up until 30 June 2028. The FSC, however, does not apply to companies holding a global business licence in Mauritius nor to companies benefiting from tax holidays. Corporate Social Responsibility Fund Companies are required, in every year, to set up a corporate social responsibility (CSR) fund equivalent
to 2% of their chargeable income in the preceding year. For CSR funds set up on or after 1 January 2019, 75% of the fund must be remitted to the DG of the MRA. For CSR funds set up prior to this, at least 50% should be remitted. CSR is not applicable to companies holding a global business licence issued by the Financial Services Commission. Corporate Climate Responsibility Levy Companies and sociétés (partnerships) that have a turnover above MUR50 million are subject to a 2% corporate climate responsibility levy on their chargea - ble income. In addition, companies are required to set up a corporate social responsibility fund equivalent to 2% of their chargeable income in the preceding year. 3.3 Passive Income Dividends Dividends declared by local companies are exempted from tax in the hands of the recipient. Foreign-source dividends received by residents are taxable at the rate of 15%. However, a tax credit for any foreign withholding tax (WHT) already suffered in the country of origin subject to proof may be applied. Alternatively, corporates may opt to apply for the par - tial exemption of 80% on the foreign dividends and reduce the tax chargeable to 3% upon satisfaction of prescribed substance requirements. No WHT applies to dividends declared by resident companies. Interest Interest is generally taxable at 15% subject to the application of the 80% partial exemption, which may reduce the effective tax rate on such interest to 3% if the prescribed substance conditions are satisfied. Foreign tax credits for any WHT suffered abroad may also be applied. Interest paid by any person, other than a bank or a non‑bank deposit‑taking institution, to a non‑resident is generally subject to WHT at 15%. However, no WHT applies where the interest is paid by a company hold - ing a global business licence to a non‑resident not
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