Personal Income Tax | Local & Expatriate
Same rates apply except for those expats in Freeport, who pay 50% rate.
Corporate Income Tax
||Flat 15% rate|
Capital Gains Tax
|Dividend Levy of 10%, this is exempt for Global Business Licensee (which pays 3%)|
Value added tax exemptions on essential goods and exports, and for businesses with turnover under 150 K USD.
Bilateral Tax Treaties and DTAAs
|43 Treaties, 22 in Africa||3% or less|
|For pharma, life sciences, smart cities, global head quartering etc||8 year tax holiday|
Tax Rulings and Directives
|Based on annual budget and finance act||None for 2021|
Since independence in 1968, Mauritius has undergone a remarkable economic transformation from a low-income, agriculturally based economy to a diversified, upper middle-income economy with growing industrial, financial, and tourist sectors.
Mauritius has achieved steady growth over the last several decades, resulting in more equitable income distribution, increased life expectancy, lowered infant mortality, and a much-improved infrastructure.
The economy currently depends on sugar, tourism, textiles and apparel, and financial services, but is expanding into fish processing, information and communications technology, education, and hospitality and property development. Sugarcane is grown on 90% of the cultivated land area but sugar makes up only around 3-4% of national GDP.
Government policies seek to stimulate economic growth in five areas:
- Serving as a gateway for international investment into Africa
- Increasing the use of renewable energy
- Developing smart cities
- Growing the ocean economy
- Upgrading and modernizing infrastructure, including public transportation, the port, and the airport.
Mauritius has attracted more than 32,000 offshore entities, many aimed at commerce in India, South Africa, and China. Mauritius is also a member of the OECD/G20’s Inclusive Framework on Base Erosion and Profit Shifting and is under pressure to review its Double Taxation Avoidance Agreements.
Mauritius’ textile sector has taken advantage of the Africa Growth and Opportunity Act, a preferential trade program that allows duty-free access to the US market, with Mauritian exports to the US growing by 35.6 % from 2010 to 2020. However, lack of local labour as well as rising labour costs eroding the competitiveness of textile firms in Mauritius.
Sound economic policies and prudent banking practices helped mitigate the negative effects of the global financial crisis in 2008-09. GDP grew in the 3-4% per year range in 2010-17, and the country continues to expand its trade and investment outreach around the globe.
Growth in the US and Europe fostered goods and services exports, including tourism, while lower oil prices kept inflation low. Mauritius continues to rank as one of the most business-friendly environments on the continent and passed a Business Facilitation Act to improve competitiveness and long-term growth prospects.
A new National Economic Development Board was set up in 2017-2018 to spearhead efforts to promote exports and attract inward investment.