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
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