What is the corporate tax rate in Mauritius?
Direct Answer
The standard corporate income tax rate in Mauritius is 15%. Global Business Companies (GBCs) may be eligible for an 80% exemption on foreign-source income, effectively reducing their rate to 3%.
Standard corporate tax rate
Mauritius levies corporate income tax at a flat rate of 15% on net chargeable income. This applies to all domestic companies, branches of foreign companies operating in Mauritius, and most entities conducting business on the island.
GBC partial exemption (3% effective rate)
Global Business Companies (GBCs) — entities licensed by the Financial Services Commission to conduct business primarily outside Mauritius — are eligible for an 80% partial exemption on specified foreign-source income, including: - Foreign dividends - Interest - Royalties - Income from the disposal of shares in foreign companies - Profits attributed to a foreign permanent establishment
The 80% exemption reduces the effective tax rate on eligible income to 3% (15% × 20%). This makes Mauritius one of the most competitive holding and investment management jurisdictions in the world.
VAT
Value Added Tax (VAT) in Mauritius is levied at a standard rate of 15%. Registration is mandatory for businesses with annual turnover exceeding MUR 6 million. The VAT system is well-administered by the Mauritius Revenue Authority (MRA) and returns are filed monthly or quarterly.
Withholding tax on dividends
Mauritius does not levy withholding tax on dividends paid by a Mauritius company to non-resident shareholders. This is a significant advantage for holding structures — profits can be repatriated to shareholders in other jurisdictions without a Mauritius withholding tax cost.
Investment tax credits
The Mauritius government periodically introduces investment tax credits to stimulate targeted sectors (ICT, renewable energy, agro-processing). The MRA publishes the current list of available credits in the annual budget.
Transfer pricing
Mauritius introduced formal transfer pricing rules aligned with the OECD guidelines in 2019. Related-party transactions must be conducted at arm's length, and documentation requirements apply to transactions above MUR 10 million.