Mauritius: Doing Business - JHI

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GLOBAL PRESENCE - LOCAL EXCELLENCEDoing Business inMauritiusEmploymentSocial cost of employment are comparatively low:Employer contributes 6% , whilst employee contributes 3%of basic pay towards National Pension Scheme, with amaximum of MUR 302 and MUR 605, respectively Levy: at 1.5% of basic salary payable by employer National solidarity Fund: 3.5% of basic salary with amaximum of MUR 353.Employment rights (like 22 local leaves, 15 sickleaves, child labour, number of working hours,etc.) are legislated for protection of employees.Discriminations of Employment on grounds ofrace and sex are also legislated against.PAGE 10 |DOING BUSINESS IN MAURITIUS
GLOBAL PRESENCE - LOCAL EXCELLENCEDoing Business inMauritiusTaxation inMauritiusCorporate TaxTaxation of foreign companiesForeign companies are taxed at a standard rate of 15percent on the profits of the branch.Corporate Social ResponsibilityAs from 1 July 2009, all domestic companies are requiredto pay CSR of 2% of book profit. Global Businesses areexempt.Special LevyBanks also pay a special levy of 3.4% of book profit and1% of operating income.Calculating Taxable IncomeAll expenses incurred exclusively in the production ofincome are deductible. Expenditure like entertainments arenot allowable expenses.Inter-company TransfersThere are no restrictions on inter-company transfers,provided there is justification for such charges / expenses.Deemed interest income rules apply in case of intercompanybalances.DepreciationCapital allowances at rates set the Mauritius RevenueAuthority are allowed on all property plant and equipmentand other amounts capitalized, including commercialsshops and offices.ProvisionsAll provisions made in the accounts are nonallowable.However, accruals for any expenses areallowable. Provision for bad debts is not allowable.Bad debts actually written off will be allowed as adeduction provided that steps have been taken torecover the debts.Corporate Income Tax RatesThere is a single tax rate for domestic companiesand individuals. Individual are taxed at a flat rate of15% after the Income Exemption Threshold ofMUR 240,000 / 450,000, depending on the numberof dependents (limited to three).Companies holding a global business licence aretaxed at an effective rate of 3%.Trust whose beneficiaries and settlor are nonresidentsare not taxable in Mauritius.There are 32 DTAs to avoid double taxation ofincome of GBL1 and domestic companies.There is no capital gains tax.Carrying Losses ForwardLosses cannot be carried forward beyond 5 years.The time limit of 5 years does not apply for lossthat is attributable to capital allowances incurredon / after 1 July 2006.PAGE 11 |DOING BUSINESS IN MAURITIUS
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Mauritius: Doing Business - JHI

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