Over the years a number of international banks, funds, accountancy firms, and other financial institutions have been incorporated in the country and have successfully serviced the Mauritian Global Business Sector. Moreover, Mauritius has a strong track record of the global investment community using its financial platform for investing in emerging countries. For instance, over the last few years, significant FDI targeting India was made out of Mauritius.
Mauritius has signed 37 Double Taxation Agreements (DTA) to date with fast emerging developed and emerging economies around the globe. Mauritius is today recognised as the ideal hub for investing in the growing regional markets as all its DTAs is based on the OECD model.
The legislative framework comprising of Mauritius has been drafted in order to meet the needs of the growing demand for Mauritius offshore products thereby making the country as an efficient and user-friendly destination for international business and financial services. Our financial services sector is mainly regulated by the tripartite consisting of the Financial Services Commission, the Mauritius Revenue Authority and the Bank of Mauritius.
GBC1 Companies are considered resident for tax purposes and therefore benefit from double taxation relief under Mauritian tax treaties. The main advantage of a GBC 1 company is that they are liable for a foreign tax credit of 80%, which effectively brings down the applicable tax rate from 15% to 3% pa. In addition, since 2010, GBC1s can also do business with Mauritian residents subject to taxes at 15%. See more details here.
GBC2s on the other hand are not considered to be resident in Mauritius for tax purposes and therefore do not benefit from double taxation relief under tax treaties. GBC2s are not liable to taxation in Mauritius. In addition, Mauritius does not impose any withholding taxes on dividends or interests as well as no capital gains tax. It is worth noting that there is no exchange control in Mauritius. See more details here.
Source of Success for the Mauritian Financial System:
- Strategic location in the Indian Ocean and close to targeted business locations.
- Convenient Time Zone (GMT+4).
- Social Stability.
- Political and economic stability.
- A stable and well regulated legal and judicial framework.
- Availability to modern technologies.
- Reliable and modern infrastructure.
- Scheme available for foreigners to acquire property in Mauritius.
- Obtaining residence during the period of ownership of the property.
- Favourable tax system to encourage growth and business development.
- Stable regulatory framework.
- International Recognition & OECD White Listed Jurisdiction.
- Presence of major international banks.
- Access to a wide network of Double Taxation Agreements (DTA).
- Presence of multilingual work force.
- Possibility to apply for work and residence permits.