BUDGET HIGHLIGHTS 2020-2021

Propelling Mauritius into the New Normal

  • Financial Services
    • Suite of new financial products including Central Bank digital currency, Variable Capital Companies,  debut Sukuk issuance and Green and Blue Bond issuance by Bank of Mauritius;
    • Introducing new frameworks for digital banking, private banking and wealth management;
    • Setting up of Venture Capital Market for start ups and SMES in Mauritius Stock Exchange;
    • Implementation of the five remaining recommendations under the Financial Action Task Force (FATF) Action Plan by September 2020, including risk-based supervisions and timely access to beneficial ownership information;
    • New AML/CFT provisions to complement existing AML/CFT laws;
    • Setting up of a specialised Financial Offences Court.
  • Fairer Tax Treatment
    • Income starting from Rs 3 million subject to 25% solidarity levy;
    • Companies/Group of companies generating gross income in excess of Rs 500 million subject to levy of:
     > 0.3% for insurance companies, financial institutions, service providers and property holding   companies;
     > 0.1% for other companies;
    • not applicable to companies operating in tourism sector or to global business companies.
  • Best in Class for Business
    • Digital platform from company formation, licensing, property registration, Bank centralized KYC to customs clearance services amongst others.
  • Gateway for Foreigners
    • Right to work permit (Occupation Permit – “OP”) and right to reside permit (Residence Permit – “RP”) merged into one single permit;
    • Eligible retirees now entitled to work and/or reside in Mauritius for 10 years, renewable;
    • Minimum investment amount for obtaining right to work in Mauritius is now reduced to USD 50,000;
    • Spouse of an OP holder can now invest or work in Mauritius without a permit and parents of OP holders may now live in Mauritius without a permit;
    • Acquisition of real estate by foreign buyers through digital Power of Attorney;
    • Professionals with an OP and foreign retirees with a RP will be able to invest in other ventures without any shareholding restriction;
    • Non-citizens who have a RP under the various real estate schemes will no longer require an OP to invest and work in Mauritius.
  • Tourism
    • Striking a commercial partnership with Liverpool Football Club for the promotion of the Mauritius destination;
    • Aparthotels Scheme enabling hotels to convert part of their accommodation units into sellable serviced apartments;
    • Invest Hotel Scheme enabling owners to occupy their units for 90 days annually;
    • Special arrangements at the airport for high net worth tourists arriving in private jets;
    • Licensees of Tourism Authority and Beach Authority exempt from payment of licence fees for two years.
  • Blue Economy
    • 8-year tax holiday, duty and VAT exemption applicable to inland aquaculture scheme;
    • Single licence for chartered yacht encompassing multiple berthing options, rights for helicopter flights and gaming.
  • Digital Transformation
    • Setting up data technology park specialising inter alia, on deep artificial intelligence and additive manufacturing;
    • Mauritius Digital Transformation Agency set up to champion digital transformation across public sector;
    • New sandbox framework for innovative technology.
  • Pension
    • Replacing the National Pension Fund contributions by the Contribution Sociale Généralisé, employees :
     employees earning Rs 50,000 or less monthly:
               > contribution by employees 1.5%, and employers 3%
     employees earning more than Rs 50,000 monthly: 
              > contribution by employees 3% and employers 6%
  • Education
    • 8-year tax holiday and other tax incentives to attract top 500 global institutions to set up branch campuses in Mauritius.
  • Construction
    • 12,000 social housing units to be built across the whole island;
    • Fast tracking 34 investment projects worth around Rs 62 billion rupees;
    • Various fiscal incentives for construction of pharmaceutical manufacturing factories, food processing plants and warehouses;
    • Waiver of application fees for Building and Land Use Permit.
  • Agriculture
    • Ensuring food security through Farm to Fork concept;
    • Matching demand and supply for land to be used for food production through a centralised digital Land Bank accessible to the public;
    • Possibility for small planters to convert 10% agricultural land for residential or commercial purpose.
  • Manufacturing
    • Promoting and protecting the “Made in Mauritius” brand through quotas and shelf-spaces in supermarkets;
    • 15% investment tax credit over 3 years to all manufacturing companies;
    • Double deduction on the cost of acquisition of patents and franchises;
    • Financial support to enterprises producing hygienic goods;
    • 2-year Government support to “Made in Mauritius” warehouses in Tanzania and Mozambique.
  • Export
    • Port dues and terminal handling charges for exports waived from July to December 2020 and halved during the first semester of 2021;
    • Freight Rebate Scheme for exports extended to Africa;
    • Trade Promotion and Marketing Scheme extended for exports to Japan, Australia, Canada and the Middle East.
  • Health Services
    • Fiscal incentives to companies operating in life sciences and medical R&D.
  • Africa
    Mauritius investment into African projects including Special Economic Zones.