INCORPORATION OF A DOMESTIC COMPANY IN MAURITIUS
Introduction
A Domestic Company is a company which is resident in Mauritius and allows to conduct business with resident and non-resident of Mauritius. However, where the company is controlled by a non-citizen of Mauritius and the activities are done principally outside of Mauritius, the Company with have to apply for a Global Business Licence.
TAXATION
- Corporate tax at 15%
- Companies engage in export of goods; the corporate tax is at 3%
- A partial exemption regime of 80% on: –
- Foreign source dividends derived by a company, subject to the amount not allowed as deduction in source country
- Interest derived by a company, other than a bank
- Income derived by a collective investment scheme (CIS), closed end fund, CIS manager, CIS administrator, investment adviser, investment dealer or asset manager
- Income derived by companies engaged in the leasing of ships, aircrafts, locomotives and trains, including rail leasing.
- Income derived by a company from leasing and provision of international fibre capacity
- Income derived by a company from the sale, financing arrangement, asset management of aircraft and its spare parts and aviation advisory services related thereto
- Income derived by a company from reinsurance and reinsurance brokering activities
- Profit attributable to a permanent establishment of a resident company in a foreign country
- No withholding tax on dividends declared by domestic company
- No capital gain tax in Mauritius in the event of disposal of investments
- No inheritance taxes
- No exchange control for transfer of capital and gains to country of residence of the shareholders
- Reduction or exemption of taxation at source on dividends, interests and royalties with countries Mauritius have signed tax treaties.
FINANCIAL STATEMENTS
- The company shall file an Annual Return once a year
- The company shall present its Financial Statements within 6 months after the balance sheet of the company, in Mauritian Rupees, otherwise in another currency subject to the Registrar of Companies (ROC)
- The audited Financial Statements are compulsory for a company having an annual turnover exceeding 100 million Mauritian Rupees
ANNUAL TAX DECLARATION AND ADVANCE PAYMENT SYSTEM
Every company is required to file its annual tax declaration to the Mauritius Revenue Authority (MRA) not later than 6 months after its financial year end.
In addition, a company with a company’s gross income exceeding MUR 10 million and it had a chargeable income will have to submit a quarterly tax declaration i.e., an “Advance Payment System” (APS) to the MRA in the second year.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Domestic Company (Except Integrated Resort Scheme Company) is required to operate a Corporate Social Responsibility (CSR) Fund. The CSR Fund of an amount equivalent to 2% of the chargeable income of the preceding income year.
TAX DEDUCTION AT SOURCE (“TDS”)
TDS is a system where the payer is required to deduct tax at the time the payment is received by or credited to the account of the payee.
The payments that would be subject to TDS are for example Interest, Royalties, Rent, payment to contractors and sub-contractors amongst others.
The TDS is an advance payment of taxes and would thus be offset against the income tax liability of the payee.
VALUE ADDED TAX (VAT)
Value Added Tax (VAT) is a tax on goods and services. It is chargeable on all taxable supplies of goods and services made in Mauritius by a taxable person in the course or furtherance of any business carried on by him. VAT is also payable on the importation of goods into Mauritius, irrespective of whether the importer is a taxable person or not.
The standard rate of VAT is 15%
Compulsory Registration:
An individual has an obligation to register for VAT purposes where: –
- his annual turnover of taxable supplies exceeds or is likely to exceed Rs 6 million; or
- he is engaged in any specific business or profession specified in the Tenth Schedule to the VAT Act irrespective of his turnover of taxable supplies
Voluntary Registration
Any person in the course of his business makes taxable supplies may apply for voluntary registration if he satisfies specific conditions.
Once a company is registered for VAT, a VAT return must be filed on a quarterly basis or every month in case its annual turnover of taxable supplies exceeds MUR 10 million.
GENERAL INFORMATION ON DOMESTIC COMPANY
| DETAILS | |
|---|---|
| Mauritian Laws | Hybrid |
| Access to double taxation treaties | Yes |
| Corporate Social Responsibility (CSR) | 2% |
| Company Secretary | |
| Local and qualified | Yes, but not compulsory under specific conditions |
| Registered office address in Mauritius | Yes |
| Stated Capital | |
| Minimum paid up Capital | No minimum requirements |
| Currencies | Mauritian Rupees |
| No par value shares | Not Allowed |
| Directors | |
| Resident Directors in Mauritius | Minimum of 1 resident director |
| Shareholder | |
| Corporate Shareholder | Allowed |
| Constitution | Not compulsory |
| Financial Statement | |
| Preparation of the financial statement | Compulsory |
| Audit the financial statement by a Mauritian Audit Firm | Compulsory when the annual turnover exceeds 100 million Mauritian Rupees |
| Filling of the Annual Return | The company shall file an Annual Return once a year |
HOW CAN WE ASSIST?
- Providing advisory services for structuring of your entity according to your objectives and projects;
- Incorporation of a Domestic Company in Mauritius with the Registrar of Companies (ROC)
- Acting as the company secretary;
- Assistance with the application of necessary licences and/or permit for operation of the Company
- Providing for resident directorship, registered office address and nominee shareholder services;
- Providing administration, company secretarial, accounting, tax and compliance services;
- Serving as liaison with the Registrar of Companies, the Mauritian Revenue Authorities and other Authorities; and
- Providing assistance for application of permits for investors and employees to work, live or invest in Mauritius.