Taxes in Mauritius

Mauritius offers a transparent tax system

Mauritius has implemented numerous tax incentives to attract foreign investment while adhering to international standards. By signing agreements aligned with these standards, Mauritius has earned recognition from the Organization for Economic Cooperation and Development (OECD) for being compliant with international taxation standards.

The tax year runs from July 1 to June 30 of the following year. This period applies to both individuals and companies when determining their taxable income and filing their tax returns.

Tax returns must be submitted to the MRA by September 30 if filed in person, or by October 15 if submitted electronically.

Becoming a tax resident in Mauritius

The Mauritius Revenue Authority (MRA) considers a tax resident in Mauritius to be a foreign person who stayed:

• At least 183 days during the fiscal year on the island;
• Or at least 270 days when combining the time spent in the current fiscal year and that spent in the 2 previous fiscal years.

Once expats have met one of these two tax residency criteria, they become taxable on both the income generated in Mauritius and foreign income transferred to Mauritius. By income, the Mauritius Revenue Authority (MRA) means:

• Income from professional activity;
• Income from a trade or profession;
• Pensions;
• Rent;
• Interest;
• Royalties.

Capital gains are the exception to the rule, for they are not subject to any taxation.

As of now, Mauritius has entered 46 tax treaties designed to prevent double taxation. You can read the details of each tax treaty on the MRA's website to know how they apply to you, depending on your nationality.

Individual income tax in Mauritius

The Mauritian tax system is quite straightforward.

For employees, both tax contributions and social contributions (for pensions and retirement) are deducted at source by their employers. This is known as the PAYE (Pay As You Earn) system, and the company handles all the necessary administrative tasks. When it comes to income tax, all employees are assigned a Tax Account Number (TAN) and benefit from these deductions at source. This means that the employer automatically withholds the appropriate amount from each employee's salary every month.

At the end of the tax year, employers provide each employee with an “Employee Declaration Form” (EDF), which lists any non-salary income, such as interest, royalties, and foreign dividends. Employees use this form to calculate their taxable amount. If the total deductions taken at source are less than what the employee owes, they will need to pay the difference to the Mauritius Revenue Authority (MRA). Conversely, if too much has been withheld, the employee will receive a refund.

To complete this process, employees must submit their tax declaration to the MRA. This can be done in person by visiting the MRA with the EDF provided by the employer, or online by registering on the MRA's e-Service website using their TAN.

Individual tax rates

Mauritius has a progressive income tax system. The amount you owe to the Mauritius Revenue Authority (MRA) is based on your annual taxable income. Essentially, the more you earn, the higher is the tax rate on your income above certain thresholds. The goal of progressive taxation is to promote fairness by ensuring that individuals with higher incomes contribute a larger share to public funds.

The Finance Act 2025 has introduced a new simplified individual income tax system, designed to make taxation clearer and more modern. Since July 1, 2025, this simplified framework is structured into three main brackets:

• 0% on the first Rs 500,000 of annual income;
• 10% on the next Rs 500,000 (up to Rs 1,000,000);
• 20% on all income exceeding Rs 1,000,000.

This streamlined system aims to make taxation more transparent while maintaining a progressive balance between low-, middle-, and high-income earners.

Fair Share Contribution (FSC) for individuals

The Fair Share Contribution (FSC) is an additional tax payable by any individual whose total taxable income, referred to as the Fair Share Contribution Income Threshold, exceeds Rs 12 million per fiscal year. The FSC is calculated at 15% on the portion of income that exceeds Rs 12 million. It applies to the fiscal years from 1 July 2025 to 30 June 2028 (three years).

The threshold corresponds to the sum of the individual's net income, dividends received from a resident company or a cooperative society, and the individual's share of dividends from a société or a succession, assuming those dividends had been fully distributed.

Dividends or distributions from a Global Business (GBL) entity and lump-sum amounts related to pension commutation, death gratuity, or compensation for death or injury when paid under legislation from a superannuation fund or under an individual pension scheme approved by the Director-General are excluded from the threshold.

Tax deductions on individual income tax

Individuals with dependents get further tax deductions. A dependent is defined as a child under 18, a child over 18 in full-time education, a spouse who does not work, or a family member who cannot work because he/she is bedridden or has a disability.

The amount of deduction per dependent is as follows:

• 1 dependent: Rs 110,000;
• 2 dependents: Rs 190,000;
• 3 dependents: Rs 275,000;
• 4 or more: Rs 355,000.

You are also entitled to claim a range of deductions and reliefs covering housing loans, medical insurance, education, and specific investments, as explained below:

• Interest on secured housing loan: Relief is granted for interest paid on a home loan used to purchase or build a residence, provided neither you nor your spouse already own a residential property and your total annual income does not exceed Rs 4 million.
• Medical insurance premiums: You may claim relief for medical insurance premiums or contributions paid for yourself and your dependents, subject to a maximum amount per person.
• Dependent child in private school: An additional deduction is available for tuition fees paid to a private primary or secondary school for a dependent child, up to a prescribed limit.
• Dependent child in tertiary education: You can claim a substantial deduction for a dependent child enrolled in full-time, non-sponsored tertiary education at a recognised institution, for a maximum period of six years.
• Employment of a carer: A deduction is allowed for wages paid to a carer assisting a bedridden close relative, subject to a maximum limit.
• Investment deductions: Relief is available for investments in sustainable technologies, such as solar energy systems, rainwater harvesting units, and electric vehicle fast chargers.
• Personal pension schemes: Contributions made to an approved personal pension plan can be deducted from your net income, up to a specified ceiling.
• Donations: Electronic donations to approved charitable organisations qualify for deductions from net income, up to a capped amount.

Corporate income tax in Mauritius

The flat corporate tax rate in Mauritius is 15%. It applies to the following:

• Commercial profits;
• Interests;
• Dividends from abroad;
• Rents, commercial income, liberal business income, CPS Current Payment must be declared quarterly to the MRA.

While the standard corporate income tax rate of 15% remains in effect, new minimum taxes and additional contributions now apply depending on a company's revenue level and legal status.

• Fair Share Contribution (FSC): A Fair Share Contribution of 5% on taxable income applies to companies earning more than Rs 24 million. Banks may face an additional levy of up to 2.5% on their domestic operations, bringing their total charge to as much as 7.5%. This FSC surcharge will apply for three consecutive fiscal years, from 1 July 2025 to 30 June 2028. However, entities holding a Global Business Licence (GBL) or enjoying exempt status or tax holidays may be excluded from this measure.
• Alternative Minimum Tax (AMT): Companies operating in key sectors, including hospitality, insurance, telecommunications, real estate, and financial services, will be subject to a minimum tax of 10% on their accounting profits whenever their regular tax liability falls below this threshold. This regime does not apply to companies benefiting from a preferential tax regime or a GBL. Importantly, tax credits, such as foreign tax credits, cannot be used to reduce the AMT due.
• Qualified Domestic Minimum Top-Up Tax (QDMTT): Since July 1, 2025, Mauritian entities that are part of a multinational group with consolidated revenue of €750 million or more fall under the QDMTT regime. If their effective tax rate in Mauritius is below 15%, a top-up tax applies to bring it up to the 15% minimum, in line with the OECD's Pillar Two (GloBE) framework. This is not a flat 15% tax but rather a supplementary levy designed to bridge the gap between a company's actual effective tax rate and the global minimum threshold.

Good to know:

Double and triple deductions are now limited to SMEs only. The Partial Exemption Regime (PER) has been tightened: companies can now only claim exemptions on income directly related to their licensed activities, and they must demonstrate real local substance. Virtual Asset Service Providers (VASPs) may qualify for an 80% partial exemption on income derived from exchange, transfer, safekeeping and administration of virtual assets. The Advance Payment System (APS) remains in place for taxable companies. Record-keeping requirements, especially for related-party transactions, have been strengthened to meet QDMTT and tax compliance standards.

Interest exemption for investment funds (CIS / CEF)

Collective Investment Schemes (CIS) and Closed-End Funds (CEF) can now benefit from a 95% partial exemption on their interest income, provided they meet economic substance requirements, including having their core activities conducted in Mauritius, maintaining qualified staff, and incurring commensurate operating expenses. This measure enhances the previous 80% partial exemption regime, making debt-related interest income more attractive within investment funds. However, where this exemption is claimed, foreign tax credits cannot be applied to the same income.

Investment Tax Credit (ITC)

A new Investment Tax Credit (ITC) framework has been introduced for small enterprises and service providers with an annual turnover of up to Rs 10 million. The credit amounts to 5% of the acquisition cost of new equipment (excluding vehicles) and is spread over three years, allowing for a total credit of up to 15%. If the credit cannot be fully utilized within the year, it may be carried forward for up to five years. However, this scheme does not automatically apply to large manufacturing companies or to the automotive sector, unless they meet specific eligibility conditions.

Triple Deduction for Donations to NGOs

Until 30 June 2025, companies could claim a triple tax deduction, capped at Rs 1 million, for donations made to NGOs working in areas such as healthcare, disability support, child protection, and rehabilitation. As of 1 July 2025, this triple deduction is restricted to small and medium-sized enterprises (SMEs) only. Large companies can no longer automatically claim this level of tax benefit for their charitable contributions.

Other corporate tax provisions

• Interest on bonds, debentures, or sukuks: Tax exemption may apply to interest income from bonds, debentures, or sukuks issued by foreign entities that finance renewable energy projects, subject to approval by the MRA.
• Aviation fuel sales: Income derived from the sale of aviation fuel to airlines is taxed at a reduced rate of 3%, as it is treated as export income under the current regime.
• Telecommunications sector: While the solidarity levy rate remains unchanged, a global cap of 35% has been introduced on the total tax burden—including corporate tax, levies, and contributions—for operators holding an ICTA licence.
• Tax credit for innovation, AI, and patents: Small enterprises (turnover up to Rs 10 million) and service providers are eligible for an ITC of 5% per year for three years, applicable to the purchase of new equipment (excluding vehicles). Under the partial exemption regime, Mauritius allows an 80% exemption on specific income categories, such as interest income, foreign dividends, and approved AI consultancy services, subject to substance requirements. CIS and CEF may benefit from a 95% exemption on interest income.
• Start-ups and SMEs – AI deduction: Start-ups and SMEs are expected to be able to claim a tax deduction of Rs 150,000 for their investments in artificial intelligence (AI) up to 2029. However, the detailed implementation guidelines have not yet been clarified.
• Deduction to support a registered artist: Companies may claim a double tax deduction for expenses incurred in supporting registered artists, including financial assistance or sponsorship. However, multiple deductions are now restricted to businesses with annual turnover not exceeding Rs 100 million.
• Premium Investor Certificate for the creative industry: The Premium Investor Certificate scheme has been extended to include investments in the creative industry, notably in performance and concert infrastructure, subject to eligibility conditions and approval by the EDB.
• Further tax exemptions: On interest on bonds for infrastructure projects, gains from selling virtual assets and tokens, and government compensation for disaster-related losses.
• Captive insurance tax holiday: These entities may benefit from a tax exemption on their income for an initial period, typically between 8 and 10 years, from the commencement of their operations, provided they meet licensing and substance requirements.

VAT in Mauritius

Value Added Tax (VAT) is an indirect tax on consumer goods and services. The VAT rate in Mauritius is 15%. It's worth noting that the Mauritius Revenue Authority (MRA) has tightened electronic invoicing and reporting obligations for VAT-registered businesses.

However, some products are exempt from VAT in Mauritius, including:

• Medical, hospital, and dental services provided within the public health system;
• Staple foods such as sugar, margarine, rice, yogurt, edible oils, bread, vegetable, fruit and flower seeds, roasted coffee;
• Essential items like toothpaste, toothbrushes, baby lotion, and medical silicone;
• Electricity and water;
• Exports of goods and services;
• Domestic cooking gas sold in cylinders of up to 12 kg;
• Photovoltaic systems;
• All musical instruments;
• Entrance to digital art galleries;
• Glass-ceramic blocks for dental applications;
• Construction projects for educational facilities;
• Construction of social housing units as part of a project implemented by New Social Living Development Ltd, plus the purchase of vehicles used during the construction;
• Medical, surgical, dental, or veterinary instruments and appliances classified under HS code 90.18;
• Services provided by diplomatic missions and agents;
• Goods and services for a project receiving at least half of its funding from a grant or special loan from a donor organization;
• Services offered by management companies to trusts or foundations if the founders and beneficiaries live outside the country.

Since 1 January 2026, digital and electronic services provided by foreign suppliers, including streaming platforms, online advertising, software, and cloud services, are subject to Value Added Tax (VAT) in Mauritius. Foreign providers are required to register locally with the Mauritius Revenue Authority (MRA) and to electronically declare their sales for VAT purposes.

Is it possible to recover VAT in Mauritius?

The tax authorities provide for the recovery of VAT by individuals in 2 cases:

• Foreign visitors leaving Mauritius;
• Mauritians leaving Mauritius.

Foreign visitors can recover VAT by making their purchases in 1,000 specific shops displaying the tax-free logos. This is possible as soon as their purchases reach a minimum of Rs 2,300 (VAT included) per store and upon presentation of their passport and receipts at the MRA customs counter.

For departing Mauritians, this list is reduced to 200 shops.

Useful links:

Mauritius Revenue Authority

MRA – Personal Taxes

MRA – Corporate Taxes

Taxation of offshore companies in Mauritius

Mauritius has put in place a number of regulations and benefits for offshore companies with the support of several actors: The Mauritius Financial Services Commission, the governing body for the creation and regulation of offshore companies as well as the banking sector as a whole, knowing that both domestic and international banks in Mauritius also welcome non-residents. As a result, investors can set up an offshore company in Mauritius, specifically a Global Business Company (GBC) or an Authorized Company (AC).

They can also manage their offshore funds through collective investment schemes or private equity funds.

An offshore company is defined as a company:

• Which establishes its registered office in a foreign country in which it does not carry out any commercial activity;
• Whose responsible managers are not domiciled locally.

The offshore company benefits from certain tax advantages, although it is entirely external, is not involved in the economy of the host country and does not benefit from the facilities offered to local companies.

Taxes for GBC

When considered a tax resident in Mauritius, the GBC is subject to a 15% tax. To prove that it manages and controls its assets from Mauritius, it must:

• Have among its directors 2 residents in Mauritius;
• Lead and chair its board of directors from Mauritius;
• Have a local bank account for the transit of funds;
• Keep its statutory documents and its registered office in Mauritius;
• Hire a qualified local company secretary;
• Hire a local auditor;
• Present minimum annual expenses proportional to the activity of the structure.

Depending on the business activity of the GBC, other substantive requirements may apply.

Offshore trusts

In Mauritius, offshore trusts:

• Are taxable on worldwide income at the prevailing tax rate, i.e., 15%;

• Are obliged to submit an annual tax return to the MRA within 6 months of the end of their accounting period;

• Can claim the 80% partial exemption applicable on their foreign source income, provided that they submit written proof of the amount of foreign tax levied, which must be equal to 80% of the Mauritian tax chargeable on such income.

Note that taxable income is defined as the difference between the net income generated by the trust and the aggregate amount distributed to beneficiaries in accordance with the terms of the trust deed.

In addition, any amount distributed to non-resident beneficiaries is exempt from income tax.

An offshore trust may apply by written notification to the Mauritian auditor to be treated as a non-resident in Mauritius for tax purposes and be exempted from taxation. In such a case, it cannot benefit from the double taxation agreements signed by Mauritius.

Finance Act 2025 updates for Global Business entities

Introduction of DMTT/QDMTT: Mauritian entities forming part of a Multinational Enterprise (MNE) group with consolidated annual revenue of at least EUR 750 million are now subject to a Qualified Domestic Minimum Top-Up Tax (QDMTT) ensuring an effective tax rate of 15%, where their actual rate falls below that threshold. This provision has been in effect since July 1, 2025. Each in-scope entity must appoint a Mauritian resident representative and notify the MRA within six months after the end of its accounting period.

Stricter eligibility for the Partial Exemption Regime (80%): The 80% partial exemption regime now applies only to income derived from activities covered by the entity's license, provided the prescribed substance requirements are met in Mauritius. Companies must prove that their core income-generating activities are effectively carried out in Mauritius.

Governance obligations and specific exemptions: Global Business Companies must be managed and controlled from Mauritius, perform their core activities locally, and notify the Financial Services Commission (FSC) of any change in their board, ownership, or control within 14 days.

Tax benefits in Mauritius

Tax benefits for individuals

The sine qua non condition to receive tax benefits in Mauritius is the notion of tax residence. Therefore, any company that meets the criteria in force benefits from the following:

• No tax on dividends;
• No tax on capital gains;
• No wealth tax;
• No inheritance tax for direct descendants;
• Profits and dividends from companies located outside Mauritius repatriable without any restriction with a tax rate of 15%;
• 15% tax rate;
• Full tax exemption for import and export activities;
• 15% tax rate for processing activity;
• Exemption from customs duties on all goods imported through the free port;
• Free repatriation of profits.

Tax benefits for businesses

Global Business Companies (GBC) are not subject to:

• Capital gains tax, withholding tax on the payment of dividends, interests or royalties;
• Stamp duty;
• Capital tax;
• Inheritance tax.

Where it owns at least 5% of an underlying company, the GBC receives a credit against the foreign tax paid on the income from which the dividend was paid (“underlying foreign tax credit”).

Where a non-Mauritian resident company receives a dividend from another non-Mauritian resident company (“secondary dividend”) of which it directly or indirectly owns at least 5% of the share capital, such dividend will qualify as a foreign tax credit and an underlying foreign tax credit.

Interest and royalty payments made by GBC are fully tax deductible in Mauritius.