Formation of Domestic- & Global Business Companies
More than 20,000 investment structures are serviced by Management Companies in Mauritius.
The Mauritian Global Business Centre does not apply foreign exchange control and all the free repatriation of profits.
The Mauritian tax system is simple and competitive.
• Both corporate tax and personal income tax, as well as Value Added Tax (VAT), are capped at 15%
• There are no capital gains tax, no tax on dividends paid by a Mauritian company no withholding tax on dividends paid
• No inheritance tax
• Foreign companies and entrepreneurs are also encouraged to set up their company in Mauritius
• In fact, there is no restriction on ownership of companies and Mauritius allows for 100% foreign shareholding.
Is domiciled and does business in Mauritius.
A domestic company can be set up for various activities including Trading, Investment Holding, and Consulting Services amongst others.
The activities can be conducted with residents as well as with non residents of Mauritius.
Corporate tax: 15%. Same can be reduced to effectively 3% through a partial exemption of 80% of income resulting from foreign dividends, foreign interest, foreign permanent establishments, leasing of aircraft and ships and exported manufactured goods.
Corporate Social Responsibility [CSR] tax: 2%, being applicable to chargeable income. VAT registration of company is compulsory if turnover is exceeding Rs. 6 million.
If the DC conducts business predominantly outside of Mauritius and at least 50% of shares are held by non-citizens of Mauritius, the DC requires a Global Business License.
Global Business Corporation (GBC)
The Global Business Corporation (GBC) is classified as an offshore corporation and resident in Mauritius for tax purposes.
A GBC can benefit to a 80% tax exemption on certain revenue streams and access to the Mauritius network of Double Taxation Avoidance Agreements (DTAA).
If the GBC holds a Tax Certificate, it can benefit from the network of Double Taxation Agreements, which makes it a cost-effective corporate medium for international tax planning. Mauritius has signed Double Taxation Agreements with many countries in Africa, Europe and Asia.
Moreover, although the rate of tax for GBC stands at 15%, it can benefit from a partial exemption regime whereby 80% of the income streams will be debarred from tax, subject to meeting substance requirements.
The revenue streams that can benefit from the 80% partial exemption regime are:
• Foreign source dividend, provided that it has not been allowed as deduction in source country - Income derived by a Collective Investment Scheme, Close End Funds, CIS manager, CIS
administrator, Investment Adviser or Asset Manager
• Income derived by companies engaged in ship and aircraft leasing
• Income derived by a company from reinsurance and reinsurance brokering activities
• Income derived by a company from leasing and provision of international fibre capacity