Mauritius: Alternative investment funds treated as tax transparent

A communique to clarify that alternative investment funds will be treated as tax transparent vehicles for income tax purposes

To clarify that AIFs will be treated as tax transparent vehicles for income tax purposes

The Mauritius Revenue Authority (on 1 July 2022) issued a communique to clarify that alternative investment funds (AIFs) will be treated as tax transparent vehicles for income tax purposes.

This implies that income earned by a Mauritius company from an AIF will be subject to tax in Mauritius as if the income derived or received by the AIF is received directly at the level of the Mauritius company. For example, income of a capital nature earned by the AIF will be treated as of a capital nature in Mauritius as well, and not as a dividend. 

Background

An AIF is a fund established or incorporated in India that is a privately pooled investment vehicle that collects funds from investors, whether Indian or foreign, for investing in accordance with a defined investment policy for the benefit of its investors.

KPMG observation

This clarification is welcomed by the financial services sector in Mauritius and brings tax certainty.

Read a July 2022 report [PDF 186 KB] prepared by the KPMG member firm in Mauritius 

 

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