Mauritius Corporate Tax Guide 2026

Overview — Corporate Taxation in Mauritius

Mauritius taxes resident companies on their worldwide income at a flat rate of 15%. The tax year runs from 1 July to 30 June. Corporate tax returns must be filed by 31 March following the end of the tax year. The Mauritius Revenue Authority (MRA) administers the system. Companies are required to make quarterly advance payments of tax based on the prior year's liability. The corporate tax regime is one of the most competitive in Africa, supported by an extensive double taxation treaty (DTT) network of over 45 treaties.

Standard CIT Rate — 15%

The standard corporate income tax rate is 15% on chargeable income for all resident companies. Chargeable income is calculated as gross income less allowable deductions (operating expenses, depreciation, interest, and other business costs). Capital gains are not taxable (0% CGT), except for gains on disposal of real estate which may be subject to specific rules. Dividend income received by a resident company from another resident company is exempt from tax.

EPZ Companies — 3%

Companies holding an Export Processing Zone (EPZ) certificate benefit from a reduced corporate tax rate of 3% on income derived from export activities. This incentive is designed to promote manufacturing and export-oriented businesses. Qualifying activities include manufacturing, processing, and assembly of goods for export. EPZ companies must comply with specific conditions regarding export thresholds and local content requirements.

Global Business Licence (GBL1) — Effective 3%

Companies holding a Global Business Licence Category 1 (GBL1) are taxed at the standard 15% rate but benefit from an 80% deemed Foreign Tax Credit (FDC), resulting in an effective tax rate of 3%. The FDC applies to foreign-source income derived by GBL1 companies. This regime makes Mauritius one of the most attractive jurisdictions for international business structuring, investment holding, and treasury operations. GBL1 companies must demonstrate economic substance in Mauritius (physical office, employees, management and control locally).

Holding Companies — 0%

Certain types of income received by holding companies may be taxed at 0% or benefit from exemptions:

• Dividends: Dividend income received by a resident company from another resident company is exempt from CIT
• Foreign dividends: Exempt from CIT for holding companies meeting specific conditions
• Capital gains on share disposals: Not taxable (no CGT)
• Interest income: May be exempt under certain conditions for holding companies

Mauritius does not impose withholding tax on dividends paid to non-residents, making it an ideal jurisdiction for holding company structures.

Solidarity Levy — 25% on Profits Over MUR 50M

A Solidarity Levy of 25% is imposed on the portion of a company's chargeable income exceeding MUR 50 million. This levy applies in addition to the standard CIT of 15%. The combined effective rate for a company with profits significantly above MUR 50 million therefore approaches 18.75% on the excess (15% CIT + 25% of 15% = 3.75% levy, total ~18.75%). The Solidarity Levy was introduced as a temporary measure and is reviewed periodically.

Loss Carryforward

Tax losses can be carried forward indefinitely and offset against future profits. There is no carryback provision. However, if there is a change in ownership of more than 50% within a 3-year period, loss utilisation may be restricted unless the company continues to carry on substantially the same business. The annual loss offset is limited to 80% of chargeable income for companies in the GBL sector (to comply with OECD substance requirements).

FAQs

What is the effective tax rate for a GBL1 company in Mauritius?

The effective tax rate for a GBL1 company is approximately 3% due to the 80% deemed Foreign Tax Credit (FDC). The company first computes tax at 15% on chargeable income, then claims an 80% FDC, leaving a net 3% effective rate. This applies to foreign-source income only.

Does Mauritius have controlled foreign company (CFC) rules?

No, Mauritius does not have CFC rules. This is an advantage for holding companies and international business structures, although the country has committed to OECD Base Erosion and Profit Shifting (BEPS) standards and implemented substance requirements for GBL companies.

Are dividends paid by a Mauritian company subject to withholding tax?

No, Mauritius does not impose withholding tax on dividends paid to shareholders (resident or non-resident). This makes it an attractive jurisdiction for distributing profits to parent companies or investors.

Disclaimer

This guide provides general information about Mauritian corporate tax (CIT) for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Mauritian tax advisor or the MRA directly for advice specific to your business. InvestmentKit does not provide tax advice.