How To Benefit From The Partial Exemption ?
The following conditions should be satisfied:
1. Carry out its core income generating activities in, or from Mauritius by:
• Employing either directly or indirectly, a reasonable number of suitably qualified persons to carry out the core activities, and
• Having an indicative level of annual expenditure, which is proportionate to its level of activities;
2. Be administered by a Management Company;
3. Has at least 2 directors, resident in Mauritius, of sufficient calibre to exercise independence of mind and judgment
4. Maintains, at all times, its principal bank account in Mauritius;
5. Keeps and maintains, at all times, its accounting records, at its registered office in Mauritius;
6. Prepares its statutory financial statements and causes such financial statements to be audited in Mauritius; and
7. Provides for meetings of directors to include at least 2 directors from Mauritius.
A trading company engaged in international trading activities will pay a 3% tax on its profit.
The Main Characteristics Of A Global Business Company
The main characteristics of a GBC are:
• Application for a Global Business Licence must be made through the Financial Services Commission (FSC).
• 2 Resident directors, a secretary, and a bank account in Mauritius are required.
• Audited accounts must be filed with FSC.
• Companies may claim for a partial exemption whereby tax will be payable at the effective rate of 3%.
• Where a partial exemption is not available, companies will benefit from the current foreign tax credit system (for taxes suffered on foreign source income).
• A tax residency certificate has to be obtained to make use of double tax treaties.
• No withholding tax on payment of dividends and interests.
• No capital gains tax, estate duty or inheritance tax.
• No minimum capital is required.
• Used mainly for holding investments in treaty countries.
• Substance requirements have to be met in Mauritius.