Mauritius: Is The Mauritian Government "Rising To The Challenge Of Our Ambitions"?

Last Updated: 20 June 2017
Article by Marc Hein and Nicolas Richard

The 2017-2018 Budget Speech having for theme "Rising to the Challenge of our Ambitions'' was presented by The Honourable Pravind Kumar Jugnauth, Prime Minister, Minister of finance and economic development yesterday Thursday 9 June 2017.

The Honourable Prime Minister in his opening speech elaborated on the fact that the Budget was based on continuity and his vision of a new era of development for the Mauritian economy which started with last year's budget.

The key budgetary measures having an impact on the legal, tax and regulatory framework of Mauritius are as follows:


  • Amendment to the Companies Act to allow for Islamic Financial Institutions and Islamic Banks to adopt accounting standards issued by the Accounting and Auditing Organisation for Islamic Financial institution.
  • The minimum capital requirement of banks will be raised from Rs 200 million to Rs 400 million with a moratorium period of 2 years for existing banks.
  • Proposal to amend the Code Civil Mauricien and the Code de Commerce to allow the use of all movable assets as loan collaterals for SMEs and co-operatives.

Financial Services & Capital Markets

  • GBC1 companies will henceforth be required to fulfil at least two of the criteria established by the FSC to demonstrate substance. Whilst this is a positive move towards enforcing the position of Mauritius as a jurisdiction of substance, it is unlikely that this will be sufficient to meet the standards required by the BEPS (Base Erosion Profit Shifting) proposals issued by the OECD.
  • The Stock Exchange Commission will set up an international capital market for multi-currency bonds. This measure can be read in line with the increased substance requirements (see paragraph above), one of the criterias being a listing on a securities exchange licensed by the FSC.
  • The legal obligations on Special Purpose Funds will be aligned with those of GBC1 companies.
  • The FSC will set the rules for regulating the Fintech activities such as peer-to-peer lending and funding, as well as mobile wallet.
  • To position Mauritius as a capital raising platform, the requirements pertaining to a prospectus as set forth under the Securities Act 2005 and Securities (Public Offer) Rules 2007 will no longer be applicable for GBC 1 companies which are also listed in another jurisdiction. Only the requirements under the SEM Listing Rules will henceforth apply.
  • The Financial Reporting Act will be amended to provide that wholly owned subsidiaries need not comply with the National Code of Corporate Governance if its ultimate holding company is already complying with same.


  • To encourage the development of new growth poles, new companies engaged in the manufacturing of pharmaceutical products, medical devices and high tech products will benefit from an 8 year income tax holiday.
  • Abolishment of Registration Duty and Land Transfer Tax on transfer of immovable property for the setting up of a business for high-tech manufacturing.


  • Registration Duty payable on leases of agricultural lands of up to 10 hectares will be waived.
  • Creation of a Food Processing Development Certificate to promote the importation of products such as maize, vanilla, cocoa, coconut and medicinal plants to be used as raw materials for processing and re-exports, including the refining of raw sugar.

Innovation & Technologies

  • Integration of the Industrial Property Office in the Mauritius Research and Innovation Council (MRIC).
  • Introduction of an Innovation Box Regime for Intellectual Property assets which are developed in Mauritius. New companies involved in innovation-driven activities will benefit from a tax holiday of 8 years on the income derived from the totality of Intellectual Property Assets.
  • The Data Protection Act will be amended to comply with the new EU data protection regulation which will come in force in May 2018.


  • The tax regime for global business companies will be reformed to meet new international requirements. The Budget does not provide any detail on the content of this reform but it is expected that changes will need to be made to the current "deemed foreign tax credit" rules in order to bring the tax regime for global business companies in line with Action 5 of the BEPS proposals (which deals with harmful tax practices).
  • Interest income from debentures issued to finance renewable energy projects and which are approved by the MRA will be exempted from tax.
  • Individuals having chargeable income plus dividends in excess of Rs 3.5 million will be required to pay 5 per cent of the excess as a solidarity levy.
  • The Tax Arrears Payment Scheme is being re-introduced for another year with new so as to expedite collection of long outstanding arrears of tax.
  • Expeditious Dispute Resolution of Tax Scheme (EDRTS) will be re-introduced for another year for the settlement of disputes of less than Rs 10 million by allowing the MRA to review the assessed amount including penalties claimed from a taxpayer who could not lodge an objection, principally because of failure to pay the 30% or 10% of the amount assessed.
  • The conduct of cases at the Assessment Review Committee ("ARC") will be revised. Written representations relating to income tax, VAT and gambling taxes accompanied by written statement of case and a witness statement will be allowed instead of hearing at ARC. In addition, cases are to be heard within 2 months from date of representation and decisions to be given within 4 weeks of hearing. It is hoped that this will significantly expedite the conduct of hearings at the ARC.
  • The Alternative Tax Dispute Resolution Panel, which is already in place since May 2017, will also be allowed to review cases involving PAYE, TDS and assessments under the Gambling Regulatory Authority Act.
  • The Income Tax Act will be amended to empower MRA to request from banks, insurance companies and non-bank deposit taking institutions, an Annual Statement of Financial Transactions in cases where a transaction by any person (individual, company, société, trust or succession) exceeds Rs 500,000 or if the aggregate amount of deposit in an income year exceeds Rs 4 million.
  • Companies will be required to submit to the MRA a list of individuals who have been paid in a year dividends exceeding Rs 100,000.
  • It will be mandatory for all companies to file their income tax returns and pay taxes to the MRA electronically. Likewise, an employer will be required to submit a PAYE return and remit tax withheld electronically.

Foreign Investment and Expatriates

  • The establishment of an Economic Development Board (EDB). The BOI, Enterprise Mauritius, the Financial Services Promotion Agency and the Mauritius Africa Fund will be integrated in the EDB. The EDB will also be the main business licensing agency in Mauritius-"no more office hopping to obtain a business license."
  • A 10 year vision blueprint will be developed in collaboration with the EDB, BoM, FSC and stakeholders of the sector.
  • To facilitate the implementation of joint projects by Mauritian enterprises in Africa, the Mauritius-Africa Fund will establish a Business and Investment Platform for Africa (BIPA).
  • The Mauritius-Africa Fund (in relation to Ivory Coast), has secured access to land, on preferential terms, in the "Zone Franche de la Biotechnologie et des Technologies de l'Information et de la Communication" for Mauritian enterprises to undertake development projects.
  • To attract foreign investment, high tech machines and equipment brought by an investor from abroad will be considered as part of the minimum investment of USD 100,000 required to obtain an Occupation Permit.
  • Extension for the 8-year work permits policy for expatriate workers in the export-oriented enterprises to all manufacturing activities.
  • Issuance and renewal of work permits will be made within the reduced timeframe of 15 working days, instead of 40 working days.
  • Non-citizens acquiring a residential property for an amount below USD 500,000 will be entitled to a Multi-Entry Visa for a maximum of 180 days per year for a consecutive period of 5 years and renewable every 5 years depending on the status of ownership.
  • Non-citizens will be allowed to acquire life rights in residential care homes and other similar facilities outside smart cities on production of an authorisation from the Board of Investment granted after it has obtained the approval of the Minister.
  • A retired non-citizen will be given the option of transferring at least USD 2,500 monthly to be eligible to a residence permit.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions