Corporate Tax in Mauritius: Rates, GBCs and the 3% Explained

Mauritius has one of the simplest, most competitive corporate tax systems in the region — but the widely-quoted “3%” needs explaining, because it is not the headline rate. Here is how company taxation actually works.

The 15% headline rate

Resident companies pay corporate income tax at a flat 15% — a rate that has been unchanged since 2007. There is no separate capital gains tax, and no withholding tax on dividends paid to non-residents.

The partial exemption and the ~3% effective rate

Certain foreign-source income streams — notably foreign dividends and interest — qualify for an 80% partial exemption, which reduces the effective rate on that income to about 3%. This is what people mean when they describe a Mauritius Global Business Company (GBC) as a 3% vehicle. The exemption is conditional on meeting substance requirements: real activity, employees and expenditure in Mauritius. An Authorised Company (managed and controlled outside Mauritius) is treated as non-resident and taxed differently.

Levies to factor in

On top of the 15%, companies contribute 2% of profit to Corporate Social Responsibility (CSR), and a 2% Corporate Climate Responsibility (CCR) levy applies to companies with turnover above MUR 50 million. VAT is 15%.

Why companies choose Mauritius

The draw is the combination: a low effective rate on qualifying income, no CGT or dividend withholding, a network of 45+ double tax treaties, and a credible, well-regulated financial centre — particularly for structuring investment into Africa and Asia. See company formation, fund and GBC setup and fintech, and talk to our advisers.

What is the corporate tax rate in Mauritius?

The headline corporate income tax rate is a flat 15%, unchanged since 2007. Qualifying foreign-source income (such as foreign dividends and interest) benefits from an 80% partial exemption, giving an effective rate of about 3% where substance conditions are met.

How does a Mauritius company get a 3% tax rate?

Through the 80% partial exemption on qualifying foreign-source income, which cuts the effective rate to roughly 3%. It applies to Global Business Companies that meet substance requirements — genuine activity, staff and expenditure in Mauritius.

What are the CSR and CCR levies?

Companies contribute 2% of profit to Corporate Social Responsibility (CSR). A separate 2% Corporate Climate Responsibility (CCR) levy applies to companies with turnover above MUR 50 million.

Sources & further reading

Figures are summarised for general guidance and were correct at the time of writing; tax and immigration rules change, so we confirm the current position for your circumstances before you act.

• PwC Worldwide Tax Summaries — Mauritius
• Mauritius Revenue Authority
• Financial Services Commission (FSC)
• Economic Development Board (EDB)