Establishment of offshore companies in Mauritius: non-double taxation agreements

Since launching its international business sector in 1992, Mauritius has signed 43 tax agreements (non – double taxation agreements as well as Double Taxation Agreements – DTAs) with various countries and others are in the process of being negotiated. The island is definitely a commercially attractive destination for investors.

Since then, the country has developed its expertise in the field of taxation, becoming one of the local, regional and international leaders in business and trade.

What is the purpose of the tax treaty?

The tax treaty is not only used to negate double taxation for individuals and businesses alike. In addition to covering income taxes, VAT or other taxes, it also serves the purpose of:

  • Reducing taxes for residents of one of the two signatory countries
  • Eliminating double taxation in favour of a tax credit equivalent to Mauritian tax,
  • Reducing the withholding taxes on dividends, interest and royalties,
  • Exempting capital gains,
  • Conditionally exempting interest payments on loans,
  • Removing exchange controls

In addition, non-double taxation agreements (DTAs) provide tax planning opportunities, thus strengthening the image of the jurisdiction as a tax planning centre, allowing control over tax evasion as well as improving the efficiency of cross-border trade.

List of Mauritius’ non-double taxation agreements

  • Africa

Agreements signed

Botswana, Egypt, Lesotho, Madagascar, Mozambique, Namibia, Republic of the Congo, Rwanda, Senegal, Seychelles, South Africa, Swaziland, Tunisia, Uganda, Zambia, Zimbabwe

Pending ratification

Gabon, Ghana, Kenya, Morocco, Nigeria

To be signed by the country

Burkina Faso, Cape Verde, Côte d’Ivoire

Under negotiation

Algeria, Malawi, North Sudan, Tanzania

  • Asia

Agreements signed

Bangladesh, China, India, Malaysia, Nepal, Pakistan, Singapore, Sri Lanka, Thailand

Pending ratification

Russia

Under negotiation

Hong Kong, Vietnam

  • Europe

Agreements signed

Belgium, Croatia, Cyprus, France, Germany, Italy, Luxembourg, Malta, Sweden, United Kingdom

Under negotiation

Czech Republic, Greece, Montenegro, Portugal, Spain

  • Middle East

Agreements signed

Kuwait, Oman, Qatar, United Arab Emirates

Under negotiation

Iran, Saudi Arabia, Yemen

  • North America

Under negotiation

Canada

  • West Indies

Agreements signed

Barbados

Under negotiation

Saint Kitts and Nevis

  • Other

Agreements signed

Australia (partial), Guernsey, Monaco

To be signed by the country

Jersey

Under negotiation

Gibraltar



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