Compliance and substance requirements have become the backbone of many businesses worldwide. Many banks now insist on only dealing with entities which are tax resident and have reasonable substance in their jurisdiction from where they are being managed and controlled. The EU/OECD are also pursuing a similar direction with more jurisdictions abiding by the ever-increasing criteria to remain in competition. In fact, it has been argued by some that the list of countries to abide by FATCA/CRS is increasing rapidly due to this.
Mauritius Substance Requirements for GBL entities engaged in Qualifying activities:
Mauritius, the African Miracle Economy, and the Island of Inspiration for Business Success (as well as being an Ethical IFC), has recently brought some interesting changes to its existing substance requirements for GBL entities (Tax Resident entity) in Mauritius.
The tax rate, as it stands in Mauritius is currently at 15%. However, an established GBL Entity engaged in the below qualifying activities can benefit from a partial exemption of 80% tax credit. As such the GBL entity is ultimately taxed at 3% on its chargeable income subject to meeting certain substance requirements ( Scheme approved by EU/OECD). Below are tables showing some examples of qualifying activities:
Any other income (with the exception of the above) shall continue to be taxed at 15%.
It is important to note that on top of these exemptions, there are not only a variety of robust banking solutions available for GBL entities in Mauritius, such as:
- Presence of many International Banks in Mauritius
- Possibility to open accounts in multiple currencies ( USD, EUR, GBP, ZAR, CHF, and many more)
- Internet Banking Services provided
- A merchant account with a payment gateway may be considered
- No need to be present in Mauritius for Bank Account opening and Company set up
- OECD/EU Approved
- Tax Incentives (3%-15%)
- Number 1 in Africa and number 13 in the world, for Ease of Doing Business
- No Withholding Tax on Dividend, Interest, and Royalties paid
- No Capital Gains Tax
- No Estate Duty, Inheritance Tax
- No Foreign Exchange Control
- 46+ Tax Treaties
- Bi-Lingual Skilled Labour Force
- Strategic Location
- Political Stability
- Member of SADC, COMESA, etc
How can Animo help?
Our expert consultants are well versed in the development and maintenance of global businesses within Mauritius! Animo is exceptionally fortunate to have roots in the African Miracle economy and have a wealth of resources through our resident expert consultants. We work closely with many large international banks in Mauritius, including HSBC, SBM, Investec, Bank of China, Maubank, ABSA, ABC, and many more, and thanks to Mauritius’s continued compliant success with the FSC and the IFA, you can be sure that all operations are EU and OECD approved!
If you would like to find out more about the benefits of establishing a global business company in paradise island, or any other relevant business queries, please do not hesitate to get in contact with our professional, adept team today! Get in touch by calling +230 489 9090, emailing email@example.com, or filling in a contact form below!