Income Tax Holidays
The budget proposes income tax holiday for the below platforms:
Non-residence criteria for companies
The non-residence criteria for a company incorporated in Mauritius shall henceforth be determined on the basis of its central management and control being outside of Mauritius.
Controlled Foreign Company (CFC)
The Income Tax Act will be amended to set out rules for Controlled Foreign Company (CFC).
100% accelerated annual allowance shall be granted in respect of capital expenditure incurred on plant or machinery not exceeding MUR60,000 (Currently MUR30,000).
Carry forward of Unrelieved Tax Losses
Where companies are facing financial difficulty and where there is a change in ownership, unrelieved tax losses may be carried forward provided that the Minister is satisfied that it is in the public interest to do so and provided that conditions relating to safeguard of employment are met. This will be applicable retrospectively as from 1 July 2018.
Companies engaged in Freeport Zone
The above information has been extracted from the budget speech delivered by The Honourable Pravind Kumar Jugnauth, Prime Minister, Minister of Home Affairs, External Communications and National Development Unit and Minister of Finance and Economic Development, to the National Assembly, on 10 June 2019.
The Budget proposals may be amended significantly before enactment. The content of this summary is intended to provide a general guide to the subject matter and should not be regarded as a basis for ascertaining liability to tax or determining investment strategy in specific circumstances. In such cases specialist advice should be taken.