Mauritius taxes companies and individuals at a headline rate of 15%, but the effective burden is often far lower: qualifying international businesses pay just 3% on foreign-sourced income under the partial exemption regime, individuals pay nothing on the first Rs 500,000 of income, and the country levies no inheritance, gift, or wealth tax. The tax system in Mauritius is built around a wide treaty network, a remittance basis for foreign income earned by residents, and substance requirements that determine whether the low effective rates actually apply.
Corporate Tax and the 3% Effective Rate
The standard corporate income tax rate is 15%, applied to the chargeable income of companies incorporated or managed and controlled from Mauritius. Exporters of goods pay 3% on those profits, a carve-out in effect since July 2017.1Mauritius Revenue Authority. Corporate Taxation The export definition is broad: it covers international buying and selling where goods ship directly from the original country without ever touching Mauritius.
The 80% Partial Exemption
The main draw for international businesses is the partial exemption. A qualifying company can elect to exempt 80% of certain foreign-sourced income, cutting the effective rate on that income from 15% to 3%. Eligible categories include foreign-sourced dividends (where the dividend is not deductible in the source country), foreign-sourced interest, income from leasing and international fibre capacity, and income from reinsurance and reinsurance brokering. Income from overseas intellectual property also qualifies where the development spending was incurred in Mauritius.2Mauritius Revenue Authority. Standard Operating Procedures – Partial Exemption
The exemption is not automatic. The company must elect it formally with the Mauritius Revenue Authority (MRA), certify that it meets the substance requirements, and keep records to back the election up on request.
Economic Substance
Mauritius tightened its substance rules in 2019. A company claiming the partial exemption must show that its core income-generating activities are performed in or from Mauritius, that it employs an adequate number of qualified people for the business, and that it incurs a minimum level of local expenditure. It must have at least two Mauritius-resident directors and hold its principal bank account locally. Miss any of this and the full 15% applies.
What counts as a core activity depends on the business. An asset manager must show that qualified staff based in Mauritius are actively making investment decisions. A company earning interest must show that funding terms, financing duration, and risk management happen on the island. A registered office is not enough; the MRA and the Financial Services Commission look for real operational presence. Board meetings must be held in Mauritius, and directors must have the qualifications to actually run the business. A board that rubber-stamps decisions taken elsewhere fails the test.
Individual Income Tax
Individual income tax runs on three bands. For the income year starting July 2025, the first Rs 500,000 of chargeable income is taxed at 0%, the next Rs 500,000 at 10%, and everything above Rs 1,000,000 at 20%. Where an employee has not filed an Employee Declaration Form, employers withhold at a flat 15% unless the employee requests 20%.3Mauritius Revenue Authority. Personal Income Tax – PAYE Income Year 01 July 2025 to 30 June 2026 Personal allowances, dependent deductions, and relief for approved pension or medical insurance contributions reduce the amount subject to tax.
Fair Share Contribution
The old Solidarity Levy was abolished in July 2023.4Mauritius Revenue Authority. Solidarity Levy (SL) – Abolished as from 01 July 2023 From the income year beginning July 2025, individuals earning more than Rs 12 million per year pay a Fair Share Contribution of 15% on leviable income above that threshold. The contribution runs for three income years, through June 2028.5Mauritius Revenue Authority. Fair Share Contribution Very few taxpayers cross that line, but for those who do, 15% on top of the 20% top band is substantial.
Residency and the Remittance Basis
Residency drives everything. Residents are taxed on worldwide income; non-residents pay only on Mauritian-source income. You qualify as a tax resident under any one of the following tests:6Worldwide Tax Summaries. Mauritius – Individual – Residence
- Physical presence in Mauritius for 183 days or more in a single income year.
- Physical presence totaling 270 days or more across the current income year and the two preceding ones combined.
- Domicile in Mauritius with no permanent place of abode outside the country.
There is a critical nuance. Resident individuals are taxed on worldwide income, but foreign-sourced income is generally taxable only to the extent it is remitted to Mauritius. Money earned abroad that stays in a foreign account and never enters the country typically falls outside the tax net. This remittance basis is a central reason internationally mobile individuals choose Mauritius.
Interest earned on savings or fixed deposit accounts at banks or non-bank deposit-taking institutions licensed under the Banking Act is exempt from tax for individuals.7Mauritius Revenue Authority. Exempt Income
Payroll and Social Contributions
Employers and employees pay several mandatory contributions on top of income tax. The MRA collects them alongside PAYE.
The Contribution Sociale Généralisée (CSG), introduced in 2021, is the main one. For monthly salaries up to Rs 50,000, employees contribute 1.5% and employers 3%. Above Rs 50,000, the rates double to 3% and 6% of basic wages.8Mauritius Revenue Authority. Contribution Sociale Généralisée (CSG)
The National Savings Fund takes 1% from employees and 2.5% from employers on basic wages.9Mauritius Revenue Authority. NPF / NSF Contributions and Training Levy The Portable Retirement Gratuity Fund adds a 4.5% employer contribution on monthly remuneration, calculated on basic wages plus productivity bonuses, attendance bonuses, and overtime. Self-employed individuals can contribute voluntarily to the PRGF at Rs 500 to Rs 2,500 per month.10Mauritius Revenue Authority. Guide of Portable Retirement Gratuity Fund
Stacked together, CSG, NSF, and PRGF push the employer’s combined payroll contribution burden to at least 10% on top of gross wages for lower-paid workers, and around 13% for those earning above Rs 50,000 monthly.
VAT and Other Indirect Taxes
VAT is charged at 15% on most goods and services supplied in Mauritius and on imported goods.11Mauritius Revenue Authority. VAT Any business with annual turnover of taxable supplies exceeding, or likely to exceed, Rs 3 million must register.12Mauritius Revenue Authority. Simplified VAT Registration The threshold was cut from Rs 6 million, so some businesses previously outside the net now fall inside it. Voluntary registration is available below the threshold and can be worth it for input VAT recovery.
Some essentials are exempt entirely: unprocessed agricultural produce, bread, cereal flours, baby food preparations, common salt, live animals used for food, vegetable seeds and planting materials, and medical aids like orthopaedic appliances and colostomy bags.13Mauritius Revenue Authority. Goods and Services Exempted from VAT The difference between exempt and zero-rated matters commercially: zero-rated supplies are taxed at 0% but let the supplier recover input VAT, while exempt supplies carry no output VAT and no input recovery.
VAT returns are filed monthly or quarterly depending on the business, with returns due by the 20th of the month following the return period in either case.14Mauritius Revenue Authority. Tax Calendar – Deadline
Registration duties apply to transfers of immovable property and shares in certain non-listed companies, calculated as a percentage of market value. A separate land transfer tax falls on the seller of immovable property, distinct from the registration duty paid by the buyer. Customs and excise duties apply to imports at rates that vary by Harmonized System classification.
No Inheritance, Gift, or Wealth Tax
Mauritius does not impose inheritance tax, gift tax, or a net wealth tax.15Worldwide Tax Summaries. Inheritance and Gift Tax Rates Property transfers on inheritance may still attract registration duties, but there is no standalone tax on the value of an estate or on gifts between individuals.
Treaty Network and Withholding
Mauritius has 45 double taxation treaties, one of the largest networks of any small-island jurisdiction.16Mauritius Revenue Authority. Double Taxation Avoidance Agreements The domestic withholding position is more layered than short summaries suggest. There is no withholding tax on dividends paid to non-residents. Interest paid to non-resident companies (other than by banks or licensed deposit-taking institutions) is withheld at 15%. Royalties to non-residents are generally withheld at 15%, with a reduced 5% rate for literary, artistic, or scientific copyright royalties.17Worldwide Tax Summaries. Mauritius – Corporate – Withholding Taxes
Treaties often cut those domestic rates further, sometimes to 0% or 5%, depending on the agreement and the recipient. Accessing the reduced rates requires the Mauritian entity to be the beneficial owner of the income rather than a conduit. Newer and renegotiated treaties increasingly incorporate the OECD’s Multilateral Instrument and its Principal Purpose Test, which denies treaty benefits where obtaining a tax advantage is the main purpose of an arrangement.
To claim treaty benefits, a Mauritian entity normally needs a Tax Residence Certificate from the MRA, valid for up to one year.18Mauritius Revenue Authority. Tax Residence Certificate (TRC) – Common Errors and Other Practical Issues For Global Business Companies, the MRA only processes applications carrying a recommendation from the Financial Services Commission. Substance is now effectively a prerequisite for using the treaty network: partner-country tax authorities routinely test whether a Mauritian entity has genuine economic activity before granting relief.
Filing Deadlines and Penalties
Corporate tax returns are filed electronically within six months of the company’s financial year-end, with quarterly advance tax payments based on estimated annual liability.19Worldwide Tax Summaries. Mauritius – Corporate – Tax Administration Individual returns are due by September 30, extended to October 15 for taxpayers who file electronically and pay via ATM or mobile payment.20Mauritius Revenue Authority. Due Dates Tax is assessed on a preceding-year basis.
Late filing of an annual return draws a penalty of Rs 2,000 per month up to Rs 20,000. Small enterprises (turnover not exceeding Rs 10 million) and individuals not in business face a lower cap of Rs 5,000. Interest on unpaid tax runs at 0.25% per month, or part of a month, from the due date until payment.21Mauritius Revenue Authority. Penalty and Interest A taxpayer who files late and pays late incurs both charges at once.
All taxpayers must keep records in English or French, in chronological order, for at least five years.22Mauritius Revenue Authority. Tax Basics for Newly Incorporated Companies Companies with related-party transactions must price them at arm’s length and prepare transfer pricing documentation. Large companies should expect periodic audits.
US Citizens and Green Card Holders in Mauritius
Mauritian tax rules do not switch off US obligations. American citizens and green card holders living in Mauritius still owe US tax on worldwide income and face separate US reporting on top of anything they file locally.
For tax year 2026, qualifying US taxpayers abroad can exclude up to $132,900 of foreign earned income using the Foreign Earned Income Exclusion.23Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 You need a tax home in Mauritius and must meet either the bona fide residence test or the physical presence test (330 full days abroad in a 12-month period). The exclusion covers earned income only, not investment income, pensions, or dividends.
US persons holding financial accounts in Mauritius with an aggregate value above $10,000 at any point in the calendar year must file FinCEN Form 114 (the FBAR) electronically by April 15, with automatic extension to October 15.24Internal Revenue Service. Report of Foreign Bank and Financial Accounts (FBAR) It captures bank accounts, brokerage accounts, and any account where you have signature authority.
FATCA adds Form 8938 (Statement of Specified Foreign Financial Assets) where total foreign financial assets exceed $200,000 on the last day of the tax year or $300,000 at any time during the year. Joint filers see those thresholds doubled to $400,000 and $600,000.25Internal Revenue Service. Do I Need to File Form 8938, Statement of Specified Foreign Financial Assets FBAR and Form 8938 go to different agencies and cover different asset categories, so you may need both for the same accounts. Missing either carries penalties that can exceed the underlying tax.