25 September 2024

Understanding the Mauritian Tax Regime

The main taxes in Mauritius as they stood in September 2024, including the 15% corporate rate, the 3% export rate, the QDMTT and the personal income tax bands in force from 1 July 2023.

Published on 25 September 2024. Rates, thresholds and other figures in this article are as at that date and may have changed since.

Overview of the tax system

Mauritius has a well-structured and progressive income taxation system that has contributed to its reputation as a business-friendly destination. The country operates a dual taxation system, incorporating both direct and indirect taxes, to generate government revenue while fostering a favourable environment for businesses and individuals.

The key elements of the Mauritian tax structure include:

Corporate income tax: a flat rate of 15%, offering an attractive environment for businesses.
Personal income tax: a progressive tax system with rates ranging from 0% to 20% on taxable income.
Value added tax (VAT): a standard rate of 15%, with certain goods and services exempt from VAT and exports taxable at 0%.
No capital gains tax, inheritance tax or withholding tax on dividends, making Mauritius a tax-efficient jurisdiction.

This tax-friendly environment, coupled with various incentives, positions Mauritius as an appealing destination for individual and corporate investors seeking financial advantages.

Corporate taxation

Mauritius currently applies a flat corporate income tax rate of 15% on a company’s chargeable income, which consists of business or trading profits and passive income. Companies engaged in the export of goods are subject to a reduced tax rate of 3% on the chargeable income attributable to exports.

Mauritius has also introduced a Qualified Domestic Minimum Top-Up Tax (QDMTT) to align with the global minimum tax rate of 15% for multinational enterprise groups with annual consolidated revenue of at least €750 million.

Personal income tax

From 1 July 2023, Mauritius moved to a progressive personal income tax system with 11 tax brackets and rates ranging from 0% to 20%. The table below sets out the taxable income brackets and the corresponding tax rates.

Taxable income bracket (MUR)	Tax rate
Up to 390,000	0%
390,001 to 430,000	2%
430,001 to 470,000	4%
470,001 to 530,000	6%
530,001 to 590,000	8%
590,001 to 890,000	10%
890,001 to 1,190,000	12%
1,190,001 to 1,490,000	14%
1,490,001 to 1,890,000	16%
1,890,001 to 2,390,000	18%
Over 2,390,000	20%

Residents are taxed on their global income, except that their foreign source income is taxable in Mauritius to the extent that it is remitted to Mauritius. Non-residents are taxed only on income earned within Mauritius. Various exemptions and deductions are available, such as those for interest paid on housing loans, donations, medical expenses and education, providing relief for individuals and encouraging skilled professionals and investors to choose Mauritius as their place of residence.

Comparison to other jurisdictions

Mauritius’s corporate income tax rate of 15% is lower than the global average of 25.85% and the African average of 28.45%. The country’s personal income tax rates are also competitive, with the top rate of 20% lower than the global average of 31.46% and the African average of 30.22%.

In addition, the absence of capital gains tax, inheritance tax and withholding tax on dividends makes Mauritius a more attractive jurisdiction than many other countries that impose these taxes.

Conclusion

Mauritius’s tax regime is designed to attract foreign investment and promote economic growth. The country’s low corporate tax rate, progressive personal income tax system and absence of certain taxes contribute to its appeal as a business-friendly destination. As Mauritius continues to strengthen its tax revenue mobilisation, it remains committed to a competitive and efficient tax system that supports its aims of sustainable development and high-income status.

The Mauritius income tax system has been reviewed by both the Organisation for Economic Co-operation and Development and the European Union and found to be fully compliant with internationally agreed standards.