Mauritius as ones tax base

Member since 22 January 2021

tashwilmotSerial expat13 February 2021 05:28:54

212

Hello

Please could you put in me in touch with or let me know of a link to a page of possible explanations for using Mauritius as ones tax base? From what I understand, one can choose to live on the island and use this as ones tax base for ones income where ever in the world - thus paying income tax on the island and no where else.

Or continuing to live where ever in the world but still using the island as ones tax base and only paying income tax here.

Or I may have this all wrong! Any insight or advice will be much appreciated.

Thank you Natasha

Ceresiet Serial expat

Member since 16 February 2020

CeresietSerial expat13 February 2021 06:19:29

380

Natasha,

there are several countries (including South Africa and the rest of the SADEC region) that have dual taxation agreements in place with Mauritius.

This basically means that you will NOT be taxed twice for the same income by your country of origin as well as Mauritius.
As I understand it, where there is no such agreement, the opposite is true and you can/will be taxed on both sides.

The big positive is that Mauritius has a flat rate of only 15% for both Personal and Company tax (there has been some talk of increasing company tax, but this will only be a few percent if and when it happens)
Compare this to the almost 45% that high nett worth individuals and companies are taxed in South Africa for instance (this is THREE TIMES the Mauritius rate).

Furthermore, Mauritius imposes no tax whatsoever on Capital Gains and Inheritance - these are areas that are highly taxed in South Africa for instance
(the sale of an second, investment property, or the sale of some shares all usually attract Capital Gains tax).

As I understand it (correct me if I am wrong) you need to do an official, full Tax Emigration to remove yourself completely from the South African Revenue Service and you also need to stay in Mauritius for more than half of the year (more than 183 days out of every 365), 60 of those days having to be consecutive.

If you still have a business in your country of origin, then that business will still pay tax there (unless you are able to re-register it in Mauritius so that it too can benefit from the low rate), but you as an individual will pay personal income tax in Mauritius, provided you comply with all the criteria above.

(I also have an idea this cannot happen immediately, but after 3 years that you have stayed a minimum of 183 days on the island, i.e. when you apply to have your Residence Permit upgraded to a Permanent Residence Permit).

links for further reading:

https://www.taxconsulting.co.za/double- … greements/https://www.moneyweb.co.za/mymoney/mone … on-sticks/https://www.saipa.co.za/wp-content/uplo … r-2019.pdf https://www.thesouthafrican.com/news/fi … -know/amp/https://businesstech.co.za/news/wealth/ … t-tax/amp/https://www.investec.com/en_za/focus/mo … broad.html https://www.sovereigngroup.com/news-and … th-africa/https://www.pkf.co.za/news/2019/expecting-expat-tax/https://www.saica.co.za/integritax/2017 … Income.htm https://www.cliffedekkerhofmeyr.com/en/ … e-UAE.html https://www.bowmanslaw.com/press_releas … is-coming/

tashwilmot Serial expat

Member since 22 January 2021

tashwilmotSerial expat13 February 2021 09:51:18

212

Thank you, we are not South African's but Botswana citizens. I have reached out to the Rolfe's and Navin to see if they could maybe put me in touch with a company on the island that could advise further. Many thanks Natasha