Regulatory & Tax Aspects in Mauritius

History & Background

Mauritius gained independence in 1968 and moved from a small agricultural economy to the secondary sector through textile and tourism, and then to the services sector with the development of business process outsourcing, financial services and global business activities.

Over the past decades, Mauritius has gained international recognition as a reputable jurisdiction for financial services and global business through adoption of international best business practices, acknowledged by international organizations such as the Organisation for Economic Cooperation and Development (OECD), the Financial Action Task Force (FATF) and the World Bank (WB).

Legal & Regulatory Framework

The Mauritian Offshore Business Activities Act, introduced in 1992, was repealed and replaced by the Financial Services Development Act 2001 under which the Financial Services Commission (FSC) was established to regulate the sector comprising a number of non-banking financial services such as global business activities, the insurance industry, leasing activities etc. An Offshore Trust Act followed by an International Companies Act was also enacted in 1994 allowing for the creation of offshore entities that could be used for international business and investment activities by non-residents. A new Companies Act and Trust Act were passed by Parliament in 2001 completing the legislative integration of onshore and offshore business activities.

The legal framework was further improved and modernized through the Financial Services Act 2007, repealing the Financial Services Development Act 2001, and the Securities Act 2005, replacing the previous Stock Exchange Act 1988.

The current legislation and regulatory framework introduced a new conceptual approach to global business. The FSC issued a number of regulations, rules and guidelines and a new licensing framework to reinforce its business-friendly approach to regulation by streamlining the licensing process within a well-defined and consolidated framework.

Double Taxation Agreements

Mauritius has been traditionally known as a jurisdiction of choice for cross-border investments into India, under the Mauritius-India tax treaty and has been the top investing country into India over the last two decades.

The network of tax treaties is not limited to India only. Mauritius has concluded over 40 tax treaties and additional treaties are under negotiation.

See the full list of the current treaties here.

Investment Promotion & Protection Agreements

Mauritius signed Investment Promotion and Protection Agreements (IPPAs) with a number of countries of the African continent.

IPPAs are international bilateral agreements between countries which aim at protecting and promoting the interests of investors in the country where the investment is being made. Mauritius has established those agreements with the objective of protecting and encouraging investments made by Mauritian companies overseas.

See the full list of IPPAs here