Mauritius has a relatively straightforward taxation system, designed to attract both individuals and businesses. The key components of the taxation system in Mauritius include:

1. Capital Gains Tax
– Mauritius does not impose a capital gains tax, making it an attractive jurisdiction for investors. This exemption applies to both residents and non-residents.

2. Property Taxes
– Land Transfer Tax: This is levied on the sale or transfer of immovable property, typically at a rate of 5% of the value of the property.
– Registration Duty: This duty is payable when registering documents related to property transactions and can vary depending on the type of transaction.

3. Social Security Contributions
– Employers and employees are required to contribute to the National Pension Fund (NPF) and the National Savings Fund (NSF). The rates are generally around 3% to 6% of the employee’s salary, depending on the specific fund and the employer’s contribution.

4. Double Taxation Agreements (DTAs)
– Mauritius has a wide network of DTAs with other countries, which helps to avoid double taxation and can provide tax benefits to individuals and companies operating in multiple jurisdictions.

5. Tax Incentives
– Mauritius offers various tax incentives to encourage investment, particularly in sectors like tourism, ICT, and manufacturing. These may include tax holidays, reduced tax rates, and exemptions from certain duties.

6. Tax Residency
– An individual is considered tax resident in Mauritius if they spend 183 days or more in the country during a tax year. Residents are taxed on their worldwide income, while non-residents are taxed only on income sourced from Mauritius.

Tax Advantages of Mauritius
15% tax on corporate profits;
15% tax on personal income (withheld at source);
15% tax rate for self-employed individuals and liberal professions;
No capital gains tax or dividend tax;
No taxation on capital gains or import-export activities;
No restrictions on repatriation of profits, dividends, and capital;
No property tax or wealth tax;
Duty exemption for all goods imported through the free port;
Tax deduction – income tax reduction based on the number of dependents in the household.
In addition to these highly attractive measures, Mauritius has a tax system that is easy to understand and compliant with international OECD standards – in fact, Mauritius was recently classified by the OECD as one of the “most virtuous” countries in terms of taxation.