flag Mauritius Mauritius: Business Environment

In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices

 

Accounting Rules

Tax Year
From 1 July to 30 June
Accounting Standards
All companies as stipulated in the Companies Act 2001, except for small private companies, which do not qualify as Public Interest Entities (PIEs), must prepare financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB. The First Schedule of the Financial Reporting Act (FRA) 2004 defines PIEs as all companies that are listed on the Stock Exchange of Mauritius, financial institutions, other than cash dealers, regulated by the Bank of Mauritius or by the Financial Services Commission, and companies that exceed one of the following thresholds in the two consecutive preceding periods: (i) annual turnover exceeding MUR 500 million; or (ii) total assets exceeding MUR 500 million.
Companies that do not qualify as a PIE may prepare financial statements in accordance with the IFRS for SMEs.
Accounting Regulation Bodies
Financial Reporting Council (FRC)
Accounting Reports
All companies must maintain statutory books and records that accurately show the transactions and financial position of the company.
The board of every company must ensure that within six months after the balance sheet date of the company, the financial statements are dated and signed on behalf of the board by two directors of the company or, where the company has only one director, by that director.
Publication Requirements
Every company, other than small private companies, shall ensure that within 28 days after the financial statements of the Company and group financial statements are required to be signed, copies of those statements together with a copy of the auditor’s report on those statements are filed with the Registrar of Companies.
The Companies Act 2001 stipulates that the financial statements of all companies, except for small private companies that do not exceed thresholds related to annual turnover and total assets, must be audited in accordance with ISA as issued by the IAASB.
Professional Accountancy Bodies
Mauritius Institute of Professional Accountants
Certification and Auditing
National Audit Office
Accounting News

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Tax Rates

Consumption Taxes

Nature of the Tax
Value-added tax (VAT)
Tax Rate
15% (standard rate)
Reduced Tax Rate
Zero-rated items include exports of goods and services; printed books and booklets; sugar; fertilizers; margarine; rice; yoghurt; edible oils; transport of passengers and goods by sea or air; electricity and water; chilled deep-sea water used for the provision of air conditioning services; photovoltaic systems; bread; cooking gas in cylinders of up to 12kg for domestic use; transport of passengers by public services vehicles; medical, hospital and dental services.
Exempt items include baby food; breakfast cereals; entrance to cinemas, concerts and shows; films, including royalties; educational services; certain financial services; insurance; land; training services approved by the Mauritius Qualifications Authority.
Other Consumption Taxes
Excise duties are levied on liquor, cars, tobacco and oil products.

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Corporate Taxes

Company Tax
15%
Tax Rate For Foreign Companies
Foreign companies are taxed at the same rates as local ones. There is an 80% tax exemption eligible on branch income, being profits attributable to a permanent establishment in Mauritius.
Capital Gains Taxation
No tax is imposed on capital gains. Nevertheless, certain transactions can be taxed as ordinary business profit; for example, if a transaction is in the nature of trade, it is considered an ordinary trading transaction and the gains derived are assessed as income. Gains realised from the sale of any property or interest in property acquired in the course of a business, as part of a profit-making undertaking or scheme, are taxable as ordinary income.
Main Allowable Deductions and Tax Credits
Deductions are available for depreciation and depletion, net operating losses, and payment to foreign affiliates. Expenditure on interest is deductible when it is incurred in respect of capital employed solely in the production of income. Provisions for bad or doubtful debt are deductible only if legal actions have been taken against the debtor.
Certain taxes are deductible, including municipal taxes relating to buildings, land transfer tax, and irrecoverable input VAT.
Losses that occured in an accounting year can be carried forward for a maximum of five years.
Other Corporate Taxes

Mauritius does not levy a real property tax.
A land transfer tax is payable by the trans­feror at the rate of 5% (exceptions apply).
A leasehold tax is levied on the registration of a deed of transfer of leasehold rights in state land (20% on the open market value of the leasehold right, shared equally between the transferor and transferee).
Stamp duty is paid to the Registrar General on every document at the time of registration, transcription, inscription, or erasure of inscription (between MUR 25 to 1,000).
The employer's Contribution Sociale Généralisée (CSG) is set at 2.5% (for the National Solidarity Fund) and 1.5% (for the Human Resource Development Council levy) of the monthly basic salary. The employer is also required to pay a training levy at the rate of 1% of the total basic wage or salary of its employees.

Other Domestic Resources
Mauritius Revenue Authority
Overview of the Mauritius' tax measures in response to Covid-19
PwC - Worldwide Tax Summary: Mauritius, to obtain a summary of the taxation system in Mauritius
 

Country Comparison For Corporate Taxation

  Mauritius Sub-Saharan Africa United States Germany
Number of Payments of Taxes per Year 8.0 36.6 10.6 9.0
Time Taken For Administrative Formalities (Hours) 140.0 284.8 175.0 218.0
Total Share of Taxes (% of Profit) 22.2 47.3 36.6 48.8

Source: Doing Business - Latest available data.

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Individual Taxes

Tax Rate

Personal income tax Progressive rates from 10% to 15%
Up to MUR 700,000 10%
Between MUR 700,000 and 975,000 12.5%
Above MUR 975,000 15%
Solidarity levy (on annual leviable income exceeding MUR 3 million) 25%
Allowable Deductions and Tax Credits
Resident individuals are entitled to claim the following deduction from their net income in the income year in which the income is derived:

  • Category A: Individual having no dependants: MUR 325,000.
  • Category B: Individual having only one dependant: MUR 435,000.
  • Category C: Individual having two dependants: MUR 515,000.
  • Category D: Individual having three dependants: MUR 600,000.
  • Category E: Individual having four or more dependants: MUR 680,000.

Consult the MRA website for further information.

Special Expatriate Tax Regime
Individuals are considered resident for tax purposes if they are domiciled in Mauritius, spend 183 days or more in an income year in the country, or have a combined presence in Mauritius of at least 270 days in the tax year and the two preceding tax years.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of Tax conventions signed by Mauritius.
Withholding Taxes
Dividends: 0%; Interests: 0 (resident companies)/15%; Royalties: 10% (residents)/15% (non-residents)

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Sources of Fiscal Information

Tax Authorities
Mauritius Revenue Authority
Other Domestic Resources
Customs department
Mauritius tax legislation

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Intellectual Property

National Organisations
Website of the Ministry of Foreign Affairs, Regional Integration and International Trade.
For more contact information, visit this page
Regional Organisations
Mauritius is a member of the African Intellectual Property Organization.

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Legal Framework

Equal Treatment of Nationals and Foreigners
Foreign nationals can, to a large extent, expect an impartial trial from the country’s judicial system. The judiciary is independent, and the domestic legal system is generally non-discriminatory and transparent.
The Equal Opportunities Commission investigates allegations of discrimination and promotes equality of opportunity in both the private and public sectors.
The Language of Justice
English and French.
Sources of the Law and Legal Similarities
Mauritius draws legal principles from both French civil law and British common law traditions: while its substance is based on the Napoleonic Code of 1804, the procedures draw from the English system. Commercial and contractual law is also based on the French civil code.
The legal sources in Mauritius are legislation, case law, and customary laws. Legislation can be divided into supreme legislation (the Constitution), primary legislation adopted by the Parliament ("the power of parliament to make laws shall be exercisable by bills passed by the Authority and assented by the President" as per the national constitution), and delegated legislation (a number of legislations, known as Enabling Acts or Parent Acts, allow subsidiary organizations such as ministries, municipalities or parastatal bodies to pass delegated legislation).
Checking National Laws Online
Government Printing Department
GovtNotice

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Standards

National Standards Organisations
Mauritius Standards Bureau
Integration in the International Standards Network
The Mauritius Standards Bureau is a full member of the International Organization for Standardization (ISO) and of the African Organisation for Standardisation (ARSO). It is also an active participant in regional fora such as the Southern African Development Community (SADC) Cooperation in Standardization (SADCSTAN), SADC Cooperation in Measurement (SADCMET) and the Common Market for Eastern and South African-Standards, Quality Assurance, Metrology and Testing (COMESA-SQMT) structure.  MSB is also an Associate Member of Conférence Générale des Poids et Mesures (CGPM).
Classification of Standards
Accreditation is done according to the international ISO standards that are recognized as Mauritian (MUS) ones.
Online Consultation of Standards
Published Mauritian standards
Certification Organisations
Mauritius Standards Bureau

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Business Practices

General Information
Opening Hours and Days
Shops' opening hours in the main cities are generally from 9.30 am to 7.30 pm (Monday-Saturday). Certain shops are open till noon on Sundays and public holidays.
The opening hours of offices in the private sector are normally 8 am to 5 pm from Monday to Friday and 9am to noon on Saturday.

Banking hours:
Monday to Thursday : 9.15 am -3.15 pm
Friday: 9.15 am -3.30 pm
Saturday: 9.15 am -11.15 am (some banks only).
 

Public Holidays

New Year's Day 1st Jan
New Year Holiday 2nd Jan
Chinese New Year movable
Abolition of Slavery 1st Feb
Thaipoosam Cavadee movable
Maha Shivaratree Maha Shivaratree
National Day 12th Mar
Ugadi movable
Eid al-Fitr movable
Labour Day 1st May
Ganesh Chaturthi movable
All Saints' Day 1st Nov
Arrival of Indentured Labourers 2nd Nov
Divali movable
Christmas Day 25th Dec
 
Holiday Compensation
According to the Workers' Rights Act (art. 30 and 24), for work performed on public holidays, a worker shall be remunerated at not less than twice the basic hourly rate for every hour of work.

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Latest Update: May 2024