Mauritius: Tax regime for banks, conditions for reduced income tax rate of 5%

Mauritius: Tax regime for banks

An amendment to the income tax regulations is intended to clarify the conditions regarding when the reduced tax rate for banks having “chargeable income” exceeding MUR 1.5 billion (approximately U.S. $37.7 million) is to apply.


The current tax regime for banks was amended by the Finance Act 2018 and is effective for the year of assessment beginning 1 July 2020 and for every subsequent year of assessment.

There are three parts to the tax regime for banks:


Certain additional conditions apply for eligibility for the 5% tax rate for years of assessment 2020-2021 and 2021-2022. For instance, the bank must grant at least 5% of its new credit facilities to any of the following categories of business:

  • Small and medium enterprises in Mauritius
  • Enterprises engaged in agriculture, manufacturing or production of renewable energy in Mauritius,
  • Operators in African or Asian countries.


Read an October 2020 report [PDF 137 KB] prepared by the KPMG member firm in Mauritius 

© 2022 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 name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. 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. The information contained 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