Mauritius - Taxation
In 2002, Mauritius' progressive schedule of corporate tax rates 0% to 35% had been replaced by a flat tax of 25%. Companies that are awarded Tax Incentive Certificates by the government are eligible for a reduced tax rate of 15%. Effective 1 July 1998, offshore companies incorporated on or after this date were required to pay tax at a rate of 15%. In addition, mutual funds, unit trusts, and certain other types of companies pay a reduced rate of 15%. Companies granted a Global Business License are taxed at 15% and are eligible for other tax reductions and exemptions. Mauritius has double-taxation prevention treaties with about 30 countries. There are also capital gains and land development taxes assessed.
The progressive scale for individual income tax, ranging from 5% to 30%, has been replaced by a simpler split schedule of two rates on taxable income: 15% on taxable income to 25,000 Rupees (about $860), and 25% on the rest. Social Security taxes are also assessed.
A general sales tax (GST) averaging 5% was imposed in 1983. As of 7 September 1998, the GST was replace by a value-added tax (VAT) with a standard rate of 10%. On 1 July 2001, the standard rate was raised to 12%, and then, as of 7 January 2002, to 15%. The VAT applies to all goods and services except those specifically exempted. The exempt list includes basic foodstuffs, basic services (medical, hospital and dental), basic utilities (water and electricity), and all exported goods and service.