Corporate Tax in Mauritius: Information for Businesses and Investors

Mauritius, located in the Indian Ocean, is a stable place with a helpful tax system. If you're from here, investing here, or running a big company, understanding corporate Tax in Mauritius is key to doing things right and planning your taxes well.

This comprehensive guide explains the corporate tax rate in Mauritius, filing obligations for Mauritius corporate income tax returns, how Mauritius corporate withholding tax works, and how businesses can optimize their tax positions in 2025.

An Overview of Corporate Tax in Mauritius

At the heart of the island’s appeal as a business destination lies its relatively low and straightforward tax system. As of 2025, corporate tax in Mauritius continues to be one of the lowest in Africa, coupled with a broad network of double taxation agreements (DTAs) and a business-friendly regulatory environment.

Key features include:

• Standard corporate tax rate of 15%
• Partial exemption regimes for qualifying income
• No capital gains tax
• Simplified tax filing for many business categories
• Dividends paid by Mauritian resident companies are generally not subject to withholding tax, including those paid to non-residents. However, in rare cases involving foreign-source income, specific treaty or exemption conditions may require careful review.

Overview of Corporate Tax in Mauritius

Details of Corporate Tax Rate in Mauritius

The corporate tax rate in Mauritius has remained stable over recent years, positioning the country as an attractive destination for businesses.

Standard Rate

As of 2025:

• The corporate tax rate in Mauritius is 15% on chargeable income.
• This applies to both resident and non-resident companies operating in Mauritius unless they qualify for exemptions or reduced rates under specific regimes.

Partial Exemption Regime

Mauritius offers an 80% partial exemption on certain income streams, effectively reducing the tax rate to 3% for qualifying income, including:

• Foreign-source dividends
• Interest income
• Foreign-source capital gains on disposal of securities
• Profits from global business license companies (subject to economic substance requirements)

Companies must maintain adequate substance in Mauritius to benefit from these reduced rates. This includes:

• Having a physical office
• Employing local staff
• Incurring reasonable operational expenditure in Mauritius

=> All about Information: Mauritius offshore company formation

Mauritius Corporate Income Tax Explained

Understanding how Mauritius corporate income tax is assessed is essential for all businesses operating on the island.

Tax Residency

A company is tax resident in Mauritius if:

• It is incorporated in Mauritius, or
• Its central management and control is exercised in Mauritius.

Resident companies are taxed on worldwide income, while non-resident companies are taxed only on income derived from Mauritius.

Chargeable Income

Chargeable income includes:

• Trading profits
• Rental income
• Interest income
• Royalties
• Other sources of business income

Certain expenses are deductible, such as:

• Operational costs
• Employee salaries
• Marketing expenses
• Depreciation on fixed assets

However, specific items like fines, penalties, and private expenses are non-deductible.

Understanding how Mauritius' corporate income tax

Filing the Mauritius Corporate Income Tax Return

All resident and non-resident companies earning Mauritius-source income must file a Mauritius corporate income tax return annually.

Key Deadlines

For companies with a financial year ending on 31 December:

• Filing deadline: 30 June of the following year
• Payment of tax due: Same as filing deadline

For companies with different year-ends, the tax return is due six months after the accounting year-end.

Advance Tax Payments

Companies whose annual turnover exceeds MUR 10 million (approx. USD 220,000) must pay corporate tax in advance via the Current Payment System (CPS). Payments are made in three installments:

• 1st installment – by 31 March
• 2nd installment – by 30 June
• 3rd installment – by 30 September

These payments are credited against the final tax liability declared in the annual Mauritius corporate income tax return.

Electronic Filing

All corporate tax returns in Mauritius must be filed electronically via the Mauritius Revenue Authority’s (MRA) online portal. Penalties apply for late filing or non-filing.

Mauritius Corporate Withholding Tax: What You Need to Know

While Mauritius is often lauded for having no withholding tax on many payments, there are exceptions. Understanding Mauritius corporate withholding tax is crucial for businesses making payments abroad or receiving income from foreign sources.

Dividends

• No withholding tax on dividends paid by Mauritian resident companies to both residents and non-residents.
• However, dividends paid out of “foreign-source income” in specific scenarios may require analysis under the partial exemption rules.

Interest

• Interest payments to non-residents are generally exempt from withholding tax.
• Exceptions exist if the interest is paid to a Mauritian bank account held by a non-resident without substance.

Royalties

• Royalties paid to non-residents are subject to Mauritius corporate withholding tax at a rate of 15%, unless reduced under a tax treaty.

Management Fees and Technical Services

• No withholding tax is levied on management or consultancy fees paid to non-residents.

Double Taxation Treaties

Mauritius has over 40 DTAs in place, including with:

• India
• China
• France
• South Africa
• UAE

These treaties often reduce or eliminate Mauritius corporate withholding tax rates on interest, royalties, and dividends.

Mauritius corporate withholding tax is crucial for businesses

Tax Incentives and Exemptions in Mauritius

A significant advantage of corporate tax in Mauritius is the availability of various tax incentives, especially for companies operating in specific sectors or under certain licenses.

Global Business Companies (GBC)

GBCs benefit from:

• Access to Mauritius’ tax treaties
• Partial exemption regime reducing effective tax rate to 3%
• No capital gains tax
• No withholding tax on dividends

However, GBCs must comply with economic substance requirements to qualify for these benefits.

Freeport Companies

Businesses operating in the Mauritius Freeport enjoy:

• Tax holiday of up to 8 years for new manufacturing entities
• Duty-free import/export of goods
• Reduced port handling charges

Innovation and Technology

Mauritius offers incentives for:

• High-tech manufacturing
• Renewable energy projects
• Fintech and digital services

These businesses may benefit from accelerated depreciation and other tax deductions.

The advantage of corporate tax in Mauritius is the availability of various tax incentives

Transfer Pricing Rules in Mauritius

Transfer pricing is increasingly important for businesses operating internationally. Mauritius has adopted OECD guidelines and requires businesses to:

• Transact at arm’s length
• Maintain transfer pricing documentation

Non-compliance could lead to adjustments and penalties.

As of 2025, Mauritius has introduced formal transfer pricing rules for companies with annual turnover exceeding MUR 500 million (approx. USD 11 million), requiring:

• Detailed transfer pricing analysis
• Documentation of related-party transactions
• Disclosure in the annual tax return

While formal transfer pricing documentation is mandatory for companies with turnover exceeding MUR 500 million, all companies engaging in related-party transactions are encouraged to follow arm’s length principles to ensure compliance.

Corporate Tax in Mauritius and Economic Substance Requirements

Post the OECD’s scrutiny of global tax jurisdictions, Mauritius introduced economic substance rules in 2019, which remain vital in 2025.

Companies benefiting from preferential tax regimes (e.g., GBCs) must demonstrate:

• Adequate number of qualified employees
• Real expenditure proportionate to activities
• Local management and decision-making presence

Failure to meet substance requirements may result in:

• Denial of partial exemptions
• Higher effective tax rates
• Loss of treaty benefits

Corporate Tax Planning for Mauritius Companies

Effective tax planning can minimize tax liability and maximize compliance under the current corporate tax framework in Mauritius.

Key Strategies:

• Leverage the 80% partial exemption regime (only specific categories of income, such as foreign-source dividends, interest, and income from licensed Global Business Companies, are eligible, provided economic substance requirements are met).
• Utilize DTAs to reduce Mauritius corporate withholding tax
• Ensure compliance with economic substance rules
• Optimize business structure between local and global activities
• Consider Freeport or sector-specific incentives

Working with local tax advisors ensures that your corporate structure aligns with both local law and international compliance standards.

Corporate Tax Planning for a Company in Mauritius

Common Mistakes Businesses Make

Despite the simplicity of corporate tax in Mauritius, companies sometimes fall into traps:

• Underestimating economic substance requirements
• Missing deadlines for the Mauritius corporate income tax return
• Overlooking transfer pricing documentation
• Incorrectly applying for treaty benefits without proper substance
• Assuming all income qualifies for partial exemption

Avoiding these mistakes can save significant time, money, and legal complications. Failure to file returns or pay taxes on time may result in penalties ranging from MUR 2,000 to 5% of tax due, plus interest. Inaccurate disclosures under transfer pricing or substance rules may also lead to treaty benefit denials.

Conclusion

Mauritius is still a top spot in Africa for business and competition. If you're an entrepreneur here or want to be, knowing your way around the corporate tax system is super important. Whether it's the good corporate tax rate, filing your income tax, or handling withholding tax, compliance is key, and smart tax planning can save you money.

Thinking of starting a business in Mauritius or growing one? Get some expert advice from Offshore Company Services that fits your situation. The tax world is always changing, so staying in the loop is a must for long-term success.