Structuring and Tax Rates in Mauritius and Africa

At TBI we have always focused on being dynamic and not inflating our in-house offering without good cause. We do this by collaborating with the most trustworthy partners who have expertise and experience that we don’t have. As so much of what Mauritius offers in terms of its opportunities lie with fiscal and tax advantages, having the right Mauritius tax partners was key. Importantly the expertise must be beyond Mauritius. Two of our partners have the ability to offer reliable advice on tax, corporate structuring, and transfer pricing throughout Africa. Their main expertise is South African and Mauritian international tax advice which works well for the influx of South African businesses and families currently relocating and financially emigrating to Mauritius.

Their services include:

  • International tax advisory;
  • Corporate structuring;
  • Tax disputes;
  • Transfer pricing;
  • Tax project implementation.

International tax and structuring

Structuring is both a science and an art – this is their specialist area of expertise. How you structure your business is a critical question as you expand globally. The right structure will protect your assets, improve your currency position, support your business operations, facilitate future business expansion and changes, and optimise your overall tax rate.

Trying to unscramble a sub-optimal structure entered into in haste or without full consideration of relevant facts is complex and expensive, so it’s important to plan upfront.

They assist our clients with the following:

  • Optimising your global and intermediary holding structure;
  • Planning capital injections and extractions;
  • Identifying optimal corporate vehicles and structuring the intra-group transactions.

Tax Advisory

They can advise on any taxation issue facing your business in South Africa, Mauritius, and across the African continent, with a focus on cross-border tax issues. Whether you are looking at how best to enter a new jurisdiction, resolving a Revenue audit, optimizing your global structure, or reducing your overall tax charge, we can help you.

Their team are specialists in the key international tax areas of double taxation agreements, residence, transfer pricing, controlled foreign companies, expatriate taxation, withholding taxes, and are seasoned in the particular challenges of tax in the African context.

Personal Income Tax in Mauritius

For those looking to relocate and be tax residents in Mauritius,  they need to think about what the income tax rates and allowances are in Mauritius.  Fortunately, the Mauritius tax rates are relatively simple, and if one earns less than MUR 650,000 net per annum, then one only pays 10% income tax. The Mauritius tax rate above MUR 650,000 prescribes that one pays 15% income tax in Mauritius. One can of course utilize the exemptions and deductions prescribed in law. In short, the Mauritius tax rates are competitive although be aware of the Solidarity Levy, which applies to leviable income in excess of MUR 3 million.

Mauritian Tax Rates for Corporates

There is a flat rate of 15% tax on Mauritian corporates, save for a rate of 3% for companies engaged in the exporting of goods from Mauritius. This reduced Mauritian tax rate for exporting gives fantastic opportunities for those trading around the world and looking for a jurisdiction with competitive tax rates but also low costs, quality banks, and a central location. One does not even need to bring the goods to Mauritius to utilize this Mauritius tax rate. Global Business Companies operate off the same tax rates as domestic companies which included an extensive partial exemption regime for various foreign-source income and a significant number of Tax Holidays.

Contact Us

Please contact us at TBI or via email at to find out more information about Mauritius, company formation, relocation, and investment in property. If the matter requires tax expertise we will introduce you to one of our partners to discuss how they can assist you.

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