The Mauritius Advantages

Viewpoints > Viewpoints from Kaizen > Offshore Company > The Mauritius Advantages

Strategically located at the cross-roads of investments in the Indian Ocean region, the Republic of Mauritius has enjoyed unprecedented socio-economic development with a substantial economic growth averaging 5% for the past 20 years. This is the fruit of careful economic governance backed up by sound business and financial infrastructure with a reputation for reliability, efficiency and probity.

 

The Government introduced a wide range of incentives to attract investments, and as a result, while the agricultural sector used to dominate, up-market tourism followed by textile production now accounts for the greater part of the Mauritian economy. The further consolidation of the legal and fiscal framework through the enactment of a series of modern and user-friendly legislation has contributed to the rise of Mauritius as a prominent offshore financial services centre and is adding a new dimension to the economic prosperity of the country.

 

In formulating new legislation, the Government adopted best practice principles thereby making Mauritius a very attractive destination for holding and structuring global investments. The legal framework governing trusts and companies is probably the most modern of all jurisdictions. Mauritius has adhered to the new international requirements, with a view to tracking money laundering and combating terrorism financing and has enacted appropriate legislation in this respect. In 2003, Mauritius joined the Egmont Group, a membership which enhances the prestige and quality image of the jurisdiction.

 

The attractiveness of Mauritius is further consolidated by the fact that it enjoys a solid reputation as a well-regulated centre and provides for guaranteed confidentiality for those engaged in legitimate business through express provisions and customary laws governing relationships between banks and customers and between professionals and clients.

 

The Mauritius Advantage

 

  • It is sovereign and independent.
  • An efficiently regulated financial services centre committed to investor’s protection with a progressive regulatory framework modeled on the industry’s ’best practice principles and compliant to internationally accepted norms of supervision including those of the Basle Committee on Banking Supervision.
  • A committed jurisdiction cooperating with such organizations as OECD, FATF and the UN and its agencies. Guaranteed confidentiality for those engaged in legitimate business through express provision and customary laws governing relationships between banks and customers and between professionals and clients.
  • No exchange control. Free repatriation of profits with no withholding tax on dividends, royalties and interests.
  • Population bilingual in English and French.
  • With a population of 1.2 million inhabitants. Mauritius benefits from a large pool of readily available graduates, qualified lawyers and accountants. Most Mauritian barristers have been called to the Bar both in the Uk and Mauritius. Accountants are members of UK professional bodies such as the Institute of Chartered and Certified Accountants.
  • Political stability guaranteed by parliamentary democracy based on the Westminster model.
  • Hybrid legal system based on English and French laws. The Highest Court of Appeal is the Privy Council in the U.K.
  • Well established banking institutions and an international stock exchange.
  • Strategic time zone (GMT+4). Business can be conducted with the Far East in the morning, Europe around mid-day and USA in late afternoon.
  • Membership of the International Court of Justice, the International Centre for Settlements of Investment Disputes and the Multilateral
  • Investment Guarantee Agency.
  • Living and administrative costs are very low.
  • Over 40 international flights daily to major European, African and Asian cities.
  • State-of-the-art telecommunication facilities and connected to the SAFE fibre optic network. Heavy investments under way to develop the country into a cyber island.
  • Mauritius has concluded a number of Investment Promotion and Protection Agreements (IPPAs).

 

Fiscal Incentives

 

  • GBC2 are tax exempt.
  • GBC1 are subject to low tax rates.
  • No withholding tax on remittance of branch profits.
  • No withholding tax on interest, royalties and dividends.
  • No capital gains tax.
  • No limit on the carry forward of tax losses.
  • Royalties, interest and service fees payable to foreign affiliates are allowed as expenses provided, they are reasonable and correspond to actual expenses incurred.
  • Investment tax credit of 10% for capital expenditure.
  • Interest paid on deposits in Category 2 banks are tax exempt.
  • No estate duty, inheritance, wealth or gift taxes.
  • No stamp duties, registration duties and levy.
  • Zero-rated Value-Added Tax for global business transactions.
  • A concessionary personal income tax rate at 12.5% for expatriate staff employed by a GBC1.

 

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