The Finance (Miscellaneous Provisions) Act 2024 (the “Finance Act 2024”) received the President’s assent on 26 July 2024 to implement the measures announced in the Budget 2024-2025 themed “Tomorrow is ours”. The budget aims to sustain economic growth with focus on three key items namely; fostering economic dynamism, working towards a sustainable and inclusive Mauritius and Building our future.
BTG is pleased to present you the highlights of the key amendments to the Corporate and Financial Services sector.
- Corporate Taxation
Corporate Climate Responsibility Levy
A new levy known as the Corporate Climate Responsibility (“CCR”) Levy has been introduced to support national initiatives to protect, manage, invest and restore the country’s natural ecosystems and combat the effects of climate change.
The CCR Levy is applicable at 2% on the chargeable income of Domestic companies, Global Business companies, Authorised companies, Trust, Foundations and resident sociétés, having a turnover of more than MUR 50 million (approx. USD 1.07M)
The CCR Levy is effective as from the year of assessment starting on 1 July 2024. It is worth noting that actual foreign tax credit may be claimed against the CCR Levy.
Below table illustrates the impact of the CCR levy on the effective tax rate:
| Entities Type | 2023-2024 | 2023-2025 |
|---|---|---|
| Domestic companies | 17% | 19% |
| Global business companies claiming partial exemption | 3% | 3.4% |
| Global business companies not claiming partial exemption | 15% | 17% |
| Companies engaged in export of goods | 3% | 5% |
- Partial exemption
Companies engaged in the following activities can claim 80% exemption on their income as from year of assessment 2025-2026, subject to substance requirements:
- A company holding a Robotic and Artificial Intelligence Enabled Advisory Services license
- A company holding a Payment Intermediary Service license
- Income Exemption
Gains or profit derived from the sale of virtual assets and virtual tokens will be tax exempt. This is effective as from 1 July 2024
- Tax credits & deductions
Effective from 1 July 2024, the following will be applicable:
- Manufacturing companies will benefit from an investment tax credit of 15% on investment in artificial intelligence and patents
- Companies will be eligible to double deduction on expenditure incurred to support professionals in the Arts
- Companies that make donation electronically to NGOs involved in the combat against drug abuse, prevention of gender-based violence and poverty alleviation are allowed a triple deduction, capped at MUR 1 million.
- Global Business & Financial Services
- To enhance the ease of doing business in Mauritius, the Financial Services Commission (“FSC”) is required to process an application for a license within 10 working days, subject to receipt of a complete application.
- The FSC may issue a written direction to a Global Business Company or an Authorised Company in certain specific circumstances such as contravention (or likely) with the provisions of the law, improper conduct of affairs or involvement in financial crime.
- The FSC may now impose fees for change in management company or registered agent, and post-licensing processes.
- Occupation Permits
- The threshold for the basic monthly salary to qualify for an Occupation Permit under the Professional Category has been reduced from MUR 30,000 to MUR 22,500
- A 10-year expert Occupation Permit has been introduced to attract foreign talents in wealth management, family office, virtual assets, and virtual tokens. The expert Occupation Permit holder will need to have at least 10 years of experience and earn at least a monthly basic salary of MUR 50,000
- Freeport Activity
A company holding a global business license can now operate a freeport activity in Mauritius such as warehousing and storage, light assembly, freight forwarding, minor processing, repacking, breaking bulk, ship repairs and maintenance, and vault services for precious stones and metals.