Worldwide transfer pricing reference guide 2014

Mauritius
Taxing authority and tax law
Mauritius Revenue Authority (MRA) and Income Tax Act 1995 (ITA 1995).
Relevant regulations and rulings
There are no relevant transfer pricing regulations. Under Section 159 of the ITA 1995, any person may apply for an advanced ruling.
The MRA should issue the ruling within 30 days of the receipt of the application.
OECD guidelines treatment
Since Mauritius does not have any specific transfer pricing laws, this question never arose. Based on experience with the MRA, the OECD
Guidelines have been used to determine the arm’s length price.
Priorities/pricing methods
Not applicable.
Transfer pricing penalties
The penalty for any late payment of tax is 5% and monthly interest at the rate of 1% applies.
Penalty relief
Even though Mauritius does not have any transfer pricing regulations, the MRA can challenge intercompany transactions. The Director-
General of the MRA is empowered to waive any interests and penalties where it is satisfied that the error is attributable to a just or
reasonable cause.
Documentation requirements
As Mauritius does not have any transfer pricing laws, there is nothing specific that is prescribed or requested by the MRA through its
statement of practice. It is recommended that all supporting documents such as comparable data and basis of allocation of profits are
maintained.
Documentation deadlines
The MRA has up to five years from the submission of the tax return to issue a notice of assessment. The time frame to keep any
documents under the Mauritian corporate laws is seven years.
Statute of limitations on transfer pricing assessments
Whilst there is no transfer pricing laws in Mauritius, the MRA may challenge intercompany transactions and has up to five years from the
submission of the tax return to issue a notice of assessment. In the case of fraud and wilful neglect, the time limit of five years does
not apply.
Return disclosures/related party disclosures
The tax payer should intimate in the return whether related party transactions have been made at arm’s length or not.
Transfer pricing–specific returns
Not applicable.
Frequency of tax audit and transfer pricing scrutiny by the tax authority
The likelihood of an annual tax audit is medium. The likelihood that transfer pricing will be reviewed as part of that audit is also medium.
The likelihood that the transfer pricing methodology will be challenged is high.
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