What is the corporate tax rate in Mauritius?

Standard corporate tax rate

Mauritius levies corporate income tax at a flat rate of 15% on net chargeable income. This applies to all domestic companies, branches of foreign companies operating in Mauritius, and most entities conducting business on the island.

GBC partial exemption (3% effective rate)

Global Business Companies (GBCs) — entities licensed by the Financial Services Commission to conduct business primarily outside Mauritius — are eligible for an 80% partial exemption on specified foreign-source income, including:

• Foreign dividends
• Interest
• Royalties
• Income from the disposal of shares in foreign companies
• Profits attributed to a foreign permanent establishment

The 80% exemption reduces the effective tax rate on eligible income to 3% (15% × 20%). This makes Mauritius one of the most competitive holding and investment management jurisdictions in the world.

VAT

Value Added Tax (VAT) in Mauritius is levied at a standard rate of 15%. Registration is mandatory for businesses with annual turnover exceeding MUR 6 million. The VAT system is well-administered by the Mauritius Revenue Authority (MRA) and returns are filed monthly or quarterly.

Withholding tax on dividends

Mauritius does not levy withholding tax on dividends paid by a Mauritius company to non-resident shareholders. This is a significant advantage for holding structures — profits can be repatriated to shareholders in other jurisdictions without a Mauritius withholding tax cost.

Investment tax credits

The Mauritius government periodically introduces investment tax credits to stimulate targeted sectors (ICT, renewable energy, agro-processing). The MRA publishes the current list of available credits in the annual budget.

Transfer pricing

Mauritius introduced formal transfer pricing rules aligned with the OECD guidelines in 2019. Related-party transactions must be conducted at arm's length, and documentation requirements apply to transactions above MUR 10 million.