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Mauritius: Tax provisions in budget for 2016 / 2017

Mauritius: Tax provisions in budget for 2016 / 2017

The budget for 2016 / 2017 was delivered on 29 July 2016 to the National Assembly by the Minister of Finance and Economic Development.

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Among the tax proposals in the budget are the following measures:

  • A five-year tax holiday for certain entities including those holding licenses to operate or provide services as treasury management centres, asset and fund managers, international law firms, investment banking and corporate advisory entities, overseas family corporations
  • Extension and expansion of existing provisions that allow certain manufacturing companies to offset their tax liabilities with 5% of their investments in new plant and machinery
  • An enhanced investment tax credit of 15% for capital investment made by a company in its subsidiary engaged in certain activities
  • A five-year tax holiday for foreign high net-worth individuals investing a minimum of U.S. $25 million in Mauritius 
  • Repeal of customs duty on approximately 368 tariff lines, with a goal to make Mauritius a “duty-free island”
  • Reduced excise tax on certain hybrid motor cars
  • Revised value added tax (VAT) rules that allow new conditions for VAT refunds

The budget did not provide clarity as to how measures to address harmful tax practices, as prescribed by the European Union or the OECD base erosion and profit shifting (BEPS) recommendations, would be addressed or implemented.

 

Read an August 2016 report [PDF 953 KB] prepared by the KPMG member firm in Mauritius: Budget Highlights 2016/17

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Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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