In 2008, Mauritius is classified by the World Bank as the number one African economic development. It offers a highly favorable environment for economic activities to attract the most foreign investors. All this is the result of the measures that will materialize and the government’s effort to develop its economy. These measures include the adoption of a flexible and very light taxation is the more remarkable. Such taxation allowed him to record an economic result incomparable in Africa.

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In other words, she recorded an influx of international investment to stimulate its economy. Thus, Mauritius is the ideal destination for those wishing to start a business. It offers tax advantages with respect to both legal entities that own or its expatriate employees. What are the various tax incentives provided by the laws of Mauritius?

Mauritius is known worldwide as the country that offers an environment conducive to foreign investment. Its tax law offers a wide range of tax, exemptions and exemptions for both offshore companies and for expatriates. With these tax incentives adds a corporate law no less favorable. The Company Act in turn allows to create a wholly foreign in three days with a very simplified formalities. In order to do everything for investment, the island also spent double taxation treaties with more than thirty countries around the world. These countries include France, UK, Belgium, Luxembourg, Germany and Italy, etc.

A very low tax on investment

Mauritian legislation encourages investment by providing tax relief on capital expenditure. These reductions have a rate set at 10% of the amount of investments. This law classifies royalties, interest and benefit paid by offshore companies to their foreign affiliates in the “expense”, which means they are in any taxable to the extent the amount is entirely rational.

By choosing to settle in Mauritius, offshore companies are exempt from all registration fees. This deductible applies to almost all documents concerning their activities. The transaction of such offshore companies is also without any value added tax or VAT. In Mauritius, the installation company is greatly facilitated by the lack of property tax relief and customs duties on equipment and office furniture, etc. Note also that the duties on vehicles, appliances and personal effects are all exempt.

Taxes on corporate profits

Because of its tax rates, Mauritius remains the destination for foreign companies who want to enjoy a very favorable economic environment. Stretched, the foreign companies operating in Mauritius enjoy a low tax on their earnings. With a rate of 15%, this tax is among the lowest in the world. To fulfill all the requirements for full implementation of foreign companies, Mauritian law applies almost no tax on profits. First, the repatriation of these is never taxable. Investors abroad can therefore freely repatriate their profits. Dividends from shares of companies are also not taxable. Identically to the repatriation of profits, the introduction of income from companies or foreign subsidiaries has a wide range of allowances.

Other tax incentives

In order to complete the tax incentives it has adopted, Mauritius also offers other exemptions or reductions in other areas. First, they affect the interest payable on bank deposits which are, in fact, freed from taxation. The tax status of Mauritius does not also a payment of fees upon an estate. Finally, as corporate tax, income tax, set at 15% of these, is also very low. For expatriate, it is even more advantageous because it is set at only 7.5%.