November 2011 Budget Highlights
With these measures, Mauritius should confirm its first ranking on the 2011 Mo Ibrahim Index of African Governance, its first ranking in Africa on the Fraser Institute’s Economic Freedom Index, and its first ranking in Africa in the World Bank's Ease of Doing Business.
Highlights which might be of interest for potential investors in Mauritius (whether in the local
market, the offshore sector or Freeport) are set out hereunder:
. Possibility for Global Business Companies to pay tax in Singapore dollar, South African rand, Swiss franc and any other approved convertible foreign currency in addition to existing US dollar, Euro and GB pound sterling. Same facility to be extended to domestic companies.
. Protected Cell Companies will pay tax on a cell basis.
. The Financial Services Commission (FSC) to be empowered to sign the International Organisation for Securities Commission Memorandum of Understanding Amendments to be made to the Bank of Mauritius Act, Financial Services Act and Securities Act to allow the disclosure of information to the FSC.
. New legal framework to be set up to promote the following vehicles
- Private Occupational Pensions
- New concept of Trusts
. The Limited Partnerships Act is to be amended so that the limited partnership can operate in or outside Mauritius or both.
. More emphasis to be laid down by the Government to safeguard the India/Mauritius Double Taxation Avoidance Agreement.
LOGISTICS AND DISTRIBUTION
. Tax holiday of Freeport operators which should end in 2013 will now be carried forward indefinitely.
. A zero per cent corporate tax as from 01 July 2013 will provide more certainty to Freeport operators and enhance Mauritius as a regional trade, marketing and distribution platform. This measure will definitely give a strong boost to the sector and help in further increasing cross border trade.
The Budget has laid major emphasis on the development of the ICT/BPO industry as a key pillar of the Mauritian economy.
. To address the shortfall in manpower in the sector, foreigners earning a monthly salary of Rs 30, 000 will be eligible for an Occupation permit.
. Measures shall be taken so as to assure better connectivity as well as better competition and competitive pricing of services.
Positioning Mauritius as an air Hub will improve the connectivity to Africa and Asia.
. Air Mauritius is to expand its network of partnership with other airlines.
TOURISM & IRS/RES
. Government intends to prioritize the hospitality and property development sector. Capital gain Tax in case of sale of immovable property is abolished.
. This fiscal measure will restore the image of Mauritius as a jurisdiction with a stable fiscal platform.
. To reposition Mauritius as an attractive sailing destination and diversify the tourism package, the Budget provides for the setting up of appropriate legal framework for marina development and operations.
. A framework will be set up to enable production of ethanol for blending with gasoline. 318million MUR will be allocated to the Maurice Ile Durable (“MID”) initiative, consisting of 118million MUR for renewable energy, 100 MUR for solar water heaters and 100 MUR for the MID Fund. The above measures fit within the vision of
Government of Mauritius in line with the MID initiative for sustainable development.
TAX ADMINISTRATION FOR CORPORATE ENTITIES
. Possibility for excess corporate tax paid to be offset against future tax liability under the
Advance Payment System.
Nothing in this document shall be construed as legal advice from any lawyer of CK (Corporate Services). The document is necessarily generalized. Professional advice should therefore be sought before any action is undertaken based on this document. We are at your disposal for any assistance.
CK (CORPORATE SERVICES)
Chancery House, Lislet Geoffroy Street, Port Louis, Mauritius
Telephone: (230) 212 22 15- Telefax: (230) 208 2986
E-mail: [email protected]