News Alert: Mauritius Budget 2019-2020
The Minister of Finance delivered his annual budget speech on 10th of June 2019 and announced a number of key measures to further promote Mauritius as an international financial centre. We have prepared a summary of key measures governing the Mauritius budget 2019-2020 for your perusal.
Key Measures of Mauritius Budget 2019-2020:
Mauritian licensed funds and management companies qualified to operate in Gujarat, India
The Mauritius Financial Services Commission will enter into an agreement with the Gujarat International Finance Tec City in India to recognise Mauritian licensed funds and management companies as being qualified to operate in the Gujarat jurisdiction as well.
To further the promotion of Mauritius as a fintech hub in the region, the government is proposing the following:
- (i) to establish a regime of robotics and artificial intelligence (AI) enabled financial advisory services;
- (ii) to introduce a new license for fintech service providers;
- (iii) to encourage self-regulation for fintech activities in consultation with United Nations Office on Drugs and Crime;
- (iv) to introduce the use of e-signatures and e-licenses on a pilot basis; and
- (v) to create crowdfunding as a new licensable activity.
Wealth management activities
An umbrella license will be granted to the service providers offering wealth management services.
Real Estate Investment Trusts (REITs)
New rules and attractive tax regimes will be introduced to promote the development of REITs.
Headquartering of e-commerce activities
A new scheme for the head quartering of e-commerce activities will be set up to promote the carrying out of such activities from Mauritius.
The Mauritius Ports Authority will allow ship-to-ship bunkering. Furthermore, a 4-year tax holiday will be granted to income derived from low sulphur heavy fuel oil. Existing storage facilities will be refurbished for the storage of low sulphur heavy fuel oil.
To incentivise the development of marinas in Mauritius, a 8-year income tax holiday will be granted to newly set up companies developing a marina and VAT exemption will be provided on the construction of marinas.
Facilitation of business
The Government will introduce a new Business Facilitation Bill which will amend 26 legislations with a view to, inter alia, expedite the start of business, eliminate unnecessary licences and permits, expedite clearances at the port and airport and protect minority investors. Additionally, a single window system will be set up at the Financial Services Commission to allow for submission of documents for financial services and global business applications.
Taxation and the partial exemption régime
(a) Outsourcing of core income generating activities:
The Income Tax Regulations 1996 will be amended to lay down the conditions that must be satisfied where a company outsources its core income generating activities, namely:
- (i) the company must be able to demonstrate adequate monitoring of the outsourced activities;
- (ii) the outsourced activities must be conducted in Mauritius; and
- (iii) the economic substance providers must not be counted multiple times by multiple companies when evidencing their own substance in Mauritius.
(b) Extension of partial exemption régime:
The partial exemption régime which was introduced last year will be extended to companies engaged in leasing and provision of international fibre capacity, companies involved in reinsurance and reinsurance brokering as well as companies engaged in the sale, financing arrangement and asset management of aircraft and its spare parts, including aviation related advisory services.
Please do not hesitate to contact us if you have any question regarding Mauritius budget 2019-2020. You can get in touch with us by filling in our contact form from this link.
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