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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.

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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

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