In Mauritius, income tax regulations treat nationals and foreigners alike, with specific provisions offering tax benefits to expatriate employees of certain companies and those operating under special incentive schemes.
Key Considerations for Tax Residency
1. Residency Criteria: A foreign individual is considered a resident of Mauritius for income tax purposes if they meet either of the following criteria during an income year:
- Physical Presence Criterion: The individual is present in Mauritius for 183 days or more during the income year.
- Aggregate Presence Criterion: The individual is present in Mauritius for an aggregate period of 270 days or more during the income year and the two preceding income years.
2. Tax Treatment: Residents are generally taxed on their worldwide income, whereas non-residents are taxed only on their Mauritius-source income. Residents receiving foreign income, such as interest from foreign corporations, can use a foreign tax credit to offset taxes paid abroad. For more details, visit our Foreign Tax Credit blog
3. Tax Concessions: Expatriates working for companies with a Category 1 Global Business License, banks under a Category 2 Banking License, or firms operating under special incentive schemes may benefit from tax concessions. These can include lower tax rates or exemptions on specific types of income, designed to attract skilled professionals and investment to Mauritius. You can visit our blog on ‘Interest on foreign corporations’ to learn more about this topic.
4. Planning Considerations: Individuals and businesses considering residency or operations in Mauritius should understand these residency rules and potential tax benefits. Proper tax planning and compliance are essential for effective financial management and operational efficiency.
By navigating these regulations and concessions effectively, individuals and businesses can optimise their tax obligations and benefits while contributing to Mauritius’ economic landscape.
