Corporate Tax in Mauritius
Navigate the 15% corporate tax rate, partial exemption, and MRA compliance.
Mauritius levies corporate income tax at a flat rate of 15% on the chargeable income of all tax-resident companies, under the Income Tax Act 1995. This single flat rate applies regardless of whether income is derived from Mauritius or from foreign sources, and there is no distinction between sectors or company types in respect of the headline rate. For Global Business Companies (GBCs), the partial exemption system introduced in 2019 may provide an 80% exemption on certain categories of foreign-source income โ including foreign dividends, interest, royalties, gains on sale of shares, and other specified income โ provided the GBC meets the applicable substance requirements and the income is not derived from activities in Mauritius.
This may result in an effective tax rate as low as 3% on qualifying income, subject to individual circumstances. Mauritius does not impose capital gains tax on the disposal of shares, property, or other assets. Dividends paid to non-resident shareholders are not subject to withholding tax.
Interest and royalties paid to non-residents attract a withholding tax rate that may be reduced under applicable double taxation agreements. Our tax compliance team prepares and files annual corporate income tax returns with the Mauritius Revenue Authority (MRA), calculates Advance Payment Tax (APT) instalments, manages correspondence with the MRA on assessments and queries, and provides proactive advice to minimise tax liabilities within the bounds of the law.
Key Features of Corporate Tax in Mauritius
15% Flat Corporate Tax Rate
Mauritius applies a single flat 15% corporate income tax rate to all resident companies under the Income Tax Act 1995. There are no progressive rates, surtaxes, or sector-specific tax rates, making the tax system simple and predictable.
Partial Exemption for GBCs
GBCs meeting substance requirements may claim an 80% partial exemption on qualifying foreign-source income โ foreign dividends, interest, royalties, gains on sale of shares, and other specified categories โ potentially reducing the effective rate to 3% on qualifying income. Individual circumstances and compliance requirements apply.
No Capital Gains Tax
Mauritius does not levy capital gains tax on the disposal of shares, real estate, or other assets. This is a significant advantage for holding and investment structures, private equity vehicles, and investors realising gains on portfolio exits.
No Withholding Tax on Outbound Dividends
Dividends paid by a Mauritius company to non-resident shareholders are not subject to withholding tax. This makes Mauritius an efficient conduit for dividend flows within international group structures.
DTA Benefits on Inbound Income
Mauritius companies can benefit from reduced withholding tax rates on income received from DTA partner countries โ including dividends, interest, and royalties โ reducing the overall tax cost on cross-border income flows.
Advance Payment Tax (APT)
Companies whose chargeable income exceeds a prescribed threshold are required to pay APT in quarterly instalments during the year. We calculate APT obligations and manage timely payment to avoid interest charges.
No Inheritance, Estate, or Gift Tax
Mauritius does not impose inheritance tax, estate duty, or gift tax. This enhances the attractiveness of Mauritius structures for wealth transfer and succession planning purposes.
No Wealth or Net Worth Tax
There is no wealth tax, net worth tax, or stamp duty on share transfers in Mauritius, further simplifying the tax burden for holding and investment structures.
MRA Compliance and Correspondence
We manage all interactions with the Mauritius Revenue Authority โ tax return submissions, APT payments, responses to assessments and queries, objections where appropriate โ ensuring timely and accurate communication with the tax authority.
Year-End Tax Planning
In the period before the financial year-end, we review the entity's tax position, identify available deductions and exemptions, and provide advice on legitimate year-end planning opportunities to optimise the tax charge within the framework of Mauritius law.
How to Manage Corporate Tax in Mauritius
Income Classification and Tax Assessment
We review all income streams and classify them by type and source โ Mauritius-source, foreign-source, qualifying for partial exemption, or subject to DTA โ establishing the applicable tax treatment for each category of income.
Partial Exemption Analysis
For GBCs, we assess eligibility for the 80% partial exemption on each category of income, confirming that substance requirements are met and that the income falls within the qualifying categories specified in the Income Tax Act 1995.
Deduction and Allowance Review
We identify all available deductions โ operating expenses, capital allowances, losses carried forward โ and ensure they are correctly claimed in the tax return to arrive at the minimum chargeable income within the law.
Tax Return Preparation
We prepare the annual corporate income tax return based on the audited financial statements, applying the correct tax treatments, exemptions, and DTA positions. The return is reviewed and approved by a qualified tax professional before submission.
MRA Filing
We submit the completed tax return to the Mauritius Revenue Authority by the statutory deadline (generally six months after the financial year-end) and obtain acknowledgement of receipt for our records.
APT Calculation and Payment
We calculate quarterly Advance Payment Tax obligations, prepare payment instructions, and ensure timely payment by each quarterly deadline to avoid interest charges. We reconcile APT payments against the annual tax liability at year-end.
MRA Query and Assessment Management
We respond to any queries or assessments raised by the MRA following tax return submission, preparing detailed responses supported by evidence. Where we disagree with an MRA assessment, we advise on the merits of an objection or appeal.
Legislative Monitoring and Advisory
We monitor changes in Mauritius tax legislation, MRA guidance, and OECD developments that may affect our clients' tax positions, providing timely advice on any required changes to structures, filings, or compliance procedures.
Requirements for Corporate Tax in Mauritius
- Audited annual financial statements (income statement, balance sheet, and notes)
- Detailed breakdown of income by source (Mauritius-source vs. foreign-source) and type
- Evidence of partial exemption eligibility (substance evidence, income category analysis)
- Details of foreign tax paid and tax residency certificates from counterparty jurisdictions
- Summary of all related party transactions and transfer pricing documentation
- Details of capital transactions (asset disposals, share sales, property transactions)
- Records of Advance Payment Tax instalments paid during the year
- Details of any MRA correspondence, assessments, or outstanding tax issues
- Details of any tax losses carried forward from prior periods
- Entity's MRA tax file number and details of the current tax year-end
Estimated Costs of Corporate Tax in Mauritius
| Item | Estimated Range |
|---|---|
| Annual corporate tax return preparation and filing | USD 800 โ 2,500 |
| Partial exemption analysis and documentation | USD 500 โ 1,500 |
| APT calculation and payment management (annual) | USD 400 โ 800 |
| MRA query / assessment response | USD 500 โ 2,000 per event |
| Year-end tax planning advisory | USD 500 โ 1,500 |
| VAT return preparation and filing (if applicable) | USD 200 โ 600 per return |
Frequently Asked Questions About Corporate Tax in Mauritius
What is the effective tax rate for a GBC?
The headline corporate tax rate is 15% under the Income Tax Act 1995. GBCs that qualify for the 80% partial exemption on qualifying categories of foreign-source income may achieve an effective tax rate as low as 3% on that qualifying income. The actual effective rate depends on the composition of income, the extent of qualifying income, and whether all substance requirements are met. Professional advice on each entity's specific position is essential.
Does Mauritius tax capital gains?
No. Mauritius does not levy a capital gains tax. Gains on disposal of shares, real estate, or other capital assets are generally not subject to income tax in Mauritius. This makes Mauritius an attractive holding jurisdiction for investments where returns are primarily driven by capital appreciation rather than regular income.
When is the corporate tax return due?
Corporate income tax returns are generally due within six months of the end of the financial year. For a GBC with a June year-end, the return is due by 31 December. For a company with a December year-end, the return is due by 30 June of the following year. We manage the filing deadline for all clients and submit returns on time.
What is Advance Payment Tax?
Advance Payment Tax (APT) is a quarterly instalment system under which companies with chargeable income above a prescribed threshold must pay estimated tax during the year rather than waiting until the annual return is filed. APT is paid quarterly and is reconciled against the final annual tax liability. We calculate APT and manage quarterly payments to avoid interest charges.
Is dividend income from a foreign subsidiary taxable in Mauritius?
Foreign dividends received by a Mauritius GBC may qualify for the 80% partial exemption under the Income Tax Act 1995, subject to substance requirements. This means only 20% of qualifying foreign dividends are included in chargeable income, resulting in a potential effective rate of 3% on those dividends. The specific treatment depends on individual circumstances and professional advice is recommended.
Are there any sectoral tax incentives in Mauritius?
Yes. Mauritius offers various sectoral tax incentives under the Income Tax Act 1995 and other legislation, including incentives for companies in the manufacturing sector, freeport operators, companies in the hospitality sector, and investment dealers. We assess eligibility for available incentives as part of our annual tax review.
Does Mauritius have a VAT?
Yes. Mauritius levies VAT at a standard rate of 15% on the supply of goods and services. Companies with taxable turnover above the registration threshold must register for VAT with the MRA and file regular VAT returns. Most GBCs conducting exclusively international business are not subject to VAT on their activities. We advise on VAT registration requirements for each entity.
What happens if the MRA raises a tax assessment?
If the MRA raises an assessment that differs from the submitted tax return, we review the assessment, advise on the merits of any objection, prepare a detailed response, and where appropriate, file a formal objection with the MRA or appeal to the Assessment Review Committee. We represent clients throughout the dispute resolution process.