Mauritius taxes companies and most individuals at a headline rate of 15%, but the effective burden is often much lower: qualifying companies can exempt 80% of certain foreign-sourced income, bringing the effective corporate rate on that income down to 3%, and resident individuals generally pay tax on foreign earnings only when the money is actually remitted to Mauritius. The tax system in Mauritius pairs these low rates with 45 double taxation treaties and no inheritance, gift, or wealth tax.
Corporate Tax Rates
The standard corporate income tax rate is 15%, applied to the chargeable income of all companies incorporated or managed and controlled from Mauritius. Companies that export goods pay a reduced 3% rate on those profits, a carve-out in place since July 2017.1Mauritius Revenue Authority. Corporate Taxation The export definition is broad enough to capture international buying and selling where goods ship directly from the original exporting country without touching Mauritius.
The 80% Partial Exemption
The feature that defines Mauritius as an investment hub is the partial exemption under the Income Tax Act. A qualifying company can elect to exempt 80% of specific categories of foreign-sourced income, cutting the effective rate on that income from 15% to 3%. Eligible categories include foreign-sourced dividends (provided they are 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 qualifies where the development expenditure was incurred in Mauritius.2Mauritius Revenue Authority. Standard Operating Procedures – Partial Exemption
The exemption is not automatic. The company must file a formal election with the Mauritius Revenue Authority (MRA) and certify it meets the economic substance requirements, with records available to back up the claim on request.
Economic Substance
Mauritius tightened its substance rules in 2019. If a company claiming the partial exemption cannot demonstrate real presence, the full 15% rate applies. Three tests have to be met: the core income-generating activities are performed in or from Mauritius, the company employs an adequate number of qualified people proportional to its business, and it incurs a minimum level of local expenditure. The company must also have at least two Mauritius-resident directors and maintain a principal bank account on the island.
What counts as a core income-generating activity depends on the business. An asset management company must show that qualified professionals based in Mauritius are actively making investment decisions. A company earning interest income must show that funding terms, financing duration, and risk management are handled locally. A registered office is not enough; the MRA and the Financial Services Commission look for genuine operational presence, with board meetings held on the island and directors qualified to run the particular business. Rubber-stamping decisions made elsewhere will not satisfy the test.
Individual Income Tax
From the income year starting July 2025, individual income tax runs on three bands: the first Rs 500,000 of chargeable income is taxed at 0%, the next Rs 500,000 at 10%, and anything above Rs 1,000,000 at 20%. Employees who have not filed an Employee Declaration Form are withheld at a flat 15% unless they request 20%.3Mauritius Revenue Authority. Personal Income Tax – PAYE Income Year 01 July 2025 to 30 June 2026 Personal allowances, dependent deductions, and relief for contributions to approved pension schemes or medical insurance reduce the amount of income subject to tax.
Fair Share Contribution for High Earners
The Solidarity Levy that previously applied to high earners was abolished in July 2023.4Mauritius Revenue Authority. Solidarity Levy (SL) – Abolished as from 01 July 2023 In its place, individuals with annual income above Rs 12 million pay a Fair Share Contribution of 15% on the portion of leviable income above that threshold, starting from the income year beginning July 2025 and running for three income years through June 2028.5Mauritius Revenue Authority. Fair Share Contribution The threshold is high enough that very few individuals are affected, but for those who are, the extra 15% sits on top of the standard 20% top rate.
Who Is a Tax Resident
Residency determines everything. Residents face worldwide taxation; non-residents pay tax only on Mauritian-source income. You qualify as a tax resident under any of these conditions: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.
- Domicile in Mauritius with no permanent place of abode outside the country.
The important nuance: resident individuals are taxed on worldwide income, but foreign-sourced income is generally only taxable to the extent it is remitted to Mauritius. Money earned abroad that stays in a foreign bank account and never enters the country typically falls outside the tax net. That remittance basis is a core part of what makes Mauritius attractive to internationally mobile individuals. Non-residents pay tax only on income arising from Mauritian sources, such as local rental income or salary for work performed on the island.
Interest earned on savings or fixed deposit accounts held with a bank or non-bank deposit-taking institution licensed under the Banking Act is exempt income for individuals.7Mauritius Revenue Authority. Exempt Income
Payroll and Social Contributions
Both employers and employees owe several mandatory social contributions on top of income tax. The MRA collects them alongside payroll taxes, and they add up to real money.
The Contribution Sociale Généralisée (CSG), introduced in 2021, funds pensions and social benefits. For a monthly salary up to Rs 50,000, the employee contributes 1.5% and the employer 3% of the basic wage. Above Rs 50,000, those rates double to 3% and 6%.8Mauritius Revenue Authority. Contribution Sociale Généralisée (CSG)
The National Savings Fund requires 1% from the employee and 2.5% from the employer, on basic wages.9Mauritius Revenue Authority. NPF / NSF Contributions and Training Levy The Portable Retirement Gratuity Fund requires employers to pay 4.5% of each worker’s monthly remuneration, which includes basic wages plus productivity bonuses, attendance bonuses, and overtime. Self-employed individuals may contribute voluntarily, between Rs 500 and Rs 2,500 per month.10Mauritius Revenue Authority. Guide of Portable Retirement Gratuity Fund
Added together, employers face a combined payroll contribution load of at least 10% on top of gross wages for lower-paid employees, and roughly 13% for those earning above Rs 50,000 per month.
Value Added Tax
The standard VAT rate is 15%, charged on most supplies of goods and services within Mauritius and on imports.11Mauritius Revenue Authority. VAT Any business whose annual turnover of taxable supplies exceeds, or is likely to exceed, Rs 3 million must register.12Mauritius Revenue Authority. Simplified VAT Registration That threshold was reduced from Rs 6 million, so businesses previously under the line may now need to register. Voluntary registration is available below the threshold and can be useful for recovering input VAT.
Essential goods such as unprocessed agricultural produce, bread, cereal flours, baby food, common salt, live animals used for food, vegetable seeds, and certain medical aids are VAT-exempt.13Mauritius Revenue Authority. Goods and Services Exempted from VAT The difference between exempt and zero-rated matters for suppliers: zero-rated supplies carry 0% output VAT but allow input VAT recovery; exempt supplies allow neither. Returns are filed monthly or quarterly depending on the business, with the MRA setting the deadline at the 20th of the month following the return period in both cases.14Mauritius Revenue Authority. Tax Calendar – Deadline
Withholding Tax and Treaties
Mauritius has concluded 45 tax treaties, one of the largest networks of any small-island jurisdiction.15Mauritius Revenue Authority. Double Taxation Avoidance Agreements These agreements prevent the same income from being taxed in both Mauritius and the treaty partner and are central to the country’s role as an investment gateway, particularly into Africa and Asia.
The domestic withholding picture: no withholding tax on dividends paid to non-residents. Interest paid to non-resident companies (other than from banks or licensed deposit-taking institutions) carries a 15% domestic withholding tax. Royalties paid to non-residents are generally withheld at 15%, with a reduced 5% rate for royalties on literary, artistic, or scientific copyrights.16Worldwide Tax Summaries. Mauritius – Corporate – Withholding Taxes Treaties often reduce or eliminate these domestic rates, sometimes down to 0% or 5% depending on the agreement and the recipient. Accessing a treaty rate requires the Mauritian entity to be the beneficial owner of the income, not simply a conduit.
Older treaties often give the exclusive right to tax capital gains on share sales to the seller’s country of residence, which historically made Mauritius attractive for holding structures. Newer and renegotiated treaties increasingly incorporate the OECD’s Multilateral Instrument and its Principal Purpose Test, which denies treaty benefits when the primary purpose of an arrangement is to secure a tax advantage rather than a genuine commercial objective. The economic substance requirements also matter at the treaty level: partner-country tax authorities routinely check whether a Mauritian entity has real activity before granting relief.
No Estate, Gift, or Wealth Tax
Mauritius imposes no inheritance tax, no gift tax, and no net wealth tax.17Worldwide Tax Summaries. Inheritance and Gift Tax Rates Property transfers triggered by inheritance may still attract registration duties, but there is no standalone tax on the value of an estate or on gifts between individuals.
Deadlines and Penalties
Corporate tax returns are filed electronically within six months of the company’s financial year-end, with quarterly advance payments based on estimated annual liability.18Worldwide 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.19Mauritius Revenue Authority. Due Dates Tax is assessed on a preceding-year basis.
Late filing of an annual return brings a penalty of Rs 2,000 per month until the return is submitted, capped at Rs 20,000. Small enterprises (annual 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 full payment.20Mauritius Revenue Authority. Penalty and Interest These stack, so filing late and paying late attracts both the flat penalty and the running interest at once. Records must be kept in English or French, in chronological order, for at least five years.21Mauritius Revenue Authority. Tax Basics for Newly Incorporated Companies
A Note for US Citizens
American citizens and green card holders remain subject to US tax on worldwide income regardless of Mauritian residency. For tax year 2026, qualifying US taxpayers abroad can exclude up to $132,900 of foreign earned income using the Foreign Earned Income Exclusion, which requires a tax home in Mauritius plus either the bona fide residence test or the physical presence test (330 full days abroad in a 12-month period).22Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 US persons holding Mauritian financial accounts with aggregate value above $10,000 at any point in the year must file FinCEN Form 114 (the FBAR) by April 15, with automatic extension to October 15.23Internal Revenue Service. Report of Foreign Bank and Financial Accounts (FBAR) Form 8938 applies separately when foreign financial assets exceed $200,000 on the last day of the tax year or $300,000 at any time (doubled for joint filers).24Internal Revenue Service. Do I Need to File Form 8938, Statement of Specified Foreign Financial Assets The two forms serve different agencies and cover different asset categories, so both may be required for the same accounts.