Why Mauritius ?
Mauritius stands as an exceptional choice for your business aspirations. Renowned as a thriving Financial Hub, it offers a robust ecosystem that nurtures growth and innovation. The presence of Double Taxation Agreements and Investment Promotion and Protection Agreements enhances its allure, providing a favorable framework for international business. Moreover, Mauritius serves as an Investment Platform for Africa, strategically positioned to connect you with a continent of untapped potential. Choosing Mauritius means accessing a strategic gateway to opportunities, backed by a supportive environment for business expansion and success.
Financial Hub
Mauritius as an International Financial Centre (“IFC”) has developed enormously since its establishment from the early 1990s to attract foreign investment into Mauritius and today, the financial services sector is considered to be one of the pillars of the Mauritian economy.
The jurisdiction of Mauritius maintains a stable and transparent environment by providing a suitable platform to investors for conducting their business and benefiting from the quality of service along with the available pool of highly qualified professionals.
Double Taxation Avoidance Agreement
Global Business (“GB”) companies are considered resident in Mauritius for tax purposes and are subject to tax along with being eligible for benefits under the Double Taxation Avoidance Agreements (DTAA’s) between Mauritius and other countries.
GB companies are subject to a tax rate of 15% on their income. However, they have the option of either claiming foreign tax credit against their Mauritius tax liability, or a partial exemption of 80% on certain income subject to meeting the substance conditions. No actual foreign tax credit is allowed on foreign-source income if the GB company has claimed the 80% exemption.
Resulting the GB company to pay tax at an effective maximum rate of 3% on its chargeable income in Mauritius.
Other tax advantages:
Additional tax advantages which have been conferred to GB companies are:
- There are no capital gains tax, and no withholding tax on payment of dividends, interests or royalties.
- No stamp duties or capital taxes.
- No inheritance tax.
Investment Promotion and Protection Agreements
Taking into account the tax advantages of the investors, Mauritius has also signed Investment Promotion and Protection Agreements (“IPPAs”), also known as ‘Bilateral Investment Treaties’ with various countries with the objective of protecting and encouraging investments made by Mauritian companies overseas. IPPAs are prominent in increasing the confidence of investors in ensuring a fair protection of their investments.
Investment Platform for Africa
Mauritius has built a reputation as a safe, trusted and competitive financial centre supported by good governance. As such, the importance of Mauritius International Financial Centre (“MIFC”) serving as a conduit for driving investment to Africa.
The growth of Mauritius is definitely linked to the future development of Africa. In that respect, given the attributes and know-how of Mauritius, it must make itself available to hit on the opportunities and unveil its position as the platform to facilitate business and trade for Africa.
