Mauritius introduces new corporate taxes and incentives

Mauritius has recently enacted the Finance (Miscellaneous Provisions) Act 2024, which outlines several changes to the country's corporate tax landscape. Jessimee Mootoosamy, Transaction Management Counsel, highlights the key developments.

One notable change is the introduction of a Corporate Climate Responsibility (CCR) Levy. This new levy, equivalent to 2% of a company's chargeable income, will be implemented from 1 July 2024 to fund climate change initiatives. Companies with a turnover below MUR 50 million are exempt from the levy. Those benefiting from the Partial Exemption Regime (PER), subject to meeting all substance requirements, can claim an 80% reduction on the CCR Levy paid.

While the government has introduced the CCR Levy, it has also provided some tax incentives. These include:

• Investment tax credit: Manufacturing companies investing in artificial intelligence and patents can claim a 15% tax credit over three years.
• Tax exemption: Gains from the sale of virtual assets and tokens are now fully exempt from income tax.
• Partial exemption regime (PER): Expanded to include companies in robotic and artificial intelligence advisory services, as well as payment intermediary services. To qualify for the 80% PER, these companies must meet specific substance requirements.

Additionally, the government has introduced tax deductions and credits for companies investing in childcare facilities, supporting NGOs, and sponsoring arts professionals.

Importantly, the medical, biotechnology, and pharmaceutical sector will see an increase in tax rates from 3% to 15% on income derived from intellectual property assets.

Furthermore, captive insurers can benefit from a 10-year income tax holiday starting from the commencement of operations.

How can Ocorian help?

It's essential to note that these changes are part of a global trend towards increased taxation and regulatory oversight.

If you require further clarification on how these changes might impact your business, please reach out to our team.

Existing clients can contact their dedicated account manager.