Share with your friends

Mauritius: Budget and tax highlights 2019-2020

Mauritius: Budget and tax highlights 2019-2020

The Prime Minister and Minister of Finance and Economic Development on 10 June 2019 presented the 2019-20 budget speech.


Related content

Tax provisions

With regard to corporate taxation, the budget proposes to extend and expand the partial exemption regime. This regime would be expanded to apply to leasing and the provision of international fibre capacity; reinsurance and brokering of reinsurance services; and sales, financing arrangements, and asset management of aircraft and spare parts, including aviation-related advisory services.

Other tax-related measures in the budget provide for:

  • A tax holiday of eight years with regard to an innovation box regime for newly established and certain existing companies
  • An eight-year tax holiday to promote marina developments and an exemption from value added tax (VAT) on marina construction costs
  • The development of real estate investment trusts (REITs) and e-commerce headquartering activities
  • The non-resident criteria for a company incorporated in Mauritius to be determined on the basis of its central management and control being outside of Mauritius
  • Rules for controlled foreign companies (CFCs)
  • An increase to the threshold amount for a capital expenditure for plant or machinery eligible for the 100% accelerated depreciation allowance
  • Exports of goods to continue to be taxed at 3%

VAT and indirect tax

With regard to VAT:

  • When a domestic company supplies services to a foreign company (based outside of Mauritius), the services would be zero-rated for VAT purposes, provided that the foreign company does not supply these same services to another local company.
  • When there is a splitting of a business entity into different entities to avoid VAT registration, each entity would be required to register for VAT.
  • The management of insurance schemes would be exempt from VAT.
  • Accommodation costs for events ranging from business meetings and conferences to wedding receptions if there are at least 100 foreign attendees staying for a minimum of three nights would be eligible for a VAT refund.
  • Eligibility for the VAT refund measures would be extended to certain construction costs of residential buildings and apartments. 
  • Incentives promoting agriculture include the extension of tax benefits for vehicle purchases, a winter allowance for tea planters, and certain duty-free incentives for equipment purchases.
  • To promote a “green economy,” a duty rebate would be available to reduce the ownership cost of electric vehicles.

Read a June 2019 report [PDF 1.88 MB] prepared by the KPMG member firm in Mauritius

© 2021 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today