{"id":1566,"date":"2018-06-14T18:00:48","date_gmt":"2018-06-14T14:00:48","guid":{"rendered":"https:\/\/venturelawltd-com.stackstaging.com\/index.php\/2019\/06\/10\/mauritius-budget-highlights-2018-2019-2\/"},"modified":"2019-06-10T16:57:04","modified_gmt":"2019-06-10T12:57:04","slug":"mauritius-budget-highlights-2018-2019","status":"publish","type":"post","link":"https:\/\/www.venturelawltd.com\/index.php\/2018\/06\/14\/mauritius-budget-highlights-2018-2019\/","title":{"rendered":"Mauritius Budget 2018-2019 Highlights"},"content":{"rendered":"

News Alert: Mauritius Budget 2018-2019<\/strong><\/p>\n

14 June 2018<\/p>\n

The Minister of Finance delivered his budget speech today, 14 June 2018 and announced a number of measures that will be of interest to those\u00a0using Mauritius as a jurisdiction to conduct international business. We are pleased to share with you our News Alert which covers key measures contained in the Mauritius budget 2018 \u2013 2019.<\/p>\n

The key measures are as follows:<\/h4>\n
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The Financial\u00a0Services\u00a0Commission\u00a0 will create\u00a0new licensable\u00a0activities, namely\u00a0Custodian of Digital Assets and Digital Asset Marketplace. This will provide a regulated environment for the safe-custody of digital assets<\/strong> by investors and enable digital\u00a0assets exchange. The regulator will also put in place\u00a0guidelines on investment in crypto-currency as a digital\u00a0asset<\/strong>.<\/li>\n
Two pioneer citizenship<\/strong> schemes<\/strong> to attract high net worth individuals: (1) the first scheme will offer foreigners the opportunity\u00a0to obtain Mauritian citizenship provided they\u00a0make a non-refundable contribution of USD 1 million to a\u00a0Mauritius Sovereign Fund. For spouse or dependents,\u00a0they will have to make an additional contribution\u00a0of USD 100,000 per member of family; (2) the second scheme will\u00a0offer foreigners the opportunity\u00a0to obtain Mauritian passport provided they\u00a0make a non-refundable contribution of USD 1 million to a\u00a0Mauritius Sovereign Fund. For spouse or dependents, they will have to make an additional contribution\u00a0of USD 50,000 per member of family.<\/li>\n
Introduction of harmonised fiscal regime<\/strong> for global business companies and domestic entities<\/li>\n<\/ul>\n
Partial exemption regime<\/h4>\n
A new partial exemption regime will be introduced. Whereby 80% of specified income will be exempted from income tax. The exemption will be granted to all companies in Mauritius, except banks, and shall apply to the following income source: (1) dividends and profits attributable to a foreign permanent establishment; (2) interests and royalties, and (3) income from provision of specified financial services.<\/p>\n
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Deemed Foreign Tax Credit<\/strong><\/li>\n<\/ul>\n
This regime available to companies holding a Category 1 Global Business Licence will be abolished as from 31\u00a0December 2018.\u00a0Companies licensed by the Financial Services Commission (FSC),\u00a0claiming the partial exemption, will have to satisfy pre-defined substantial activities requirement of the FSC. The existing credit system for relief of double taxation will continue to apply where partial exemption is not available.\u00a0The current regime will continue to apply until 30 June 2021 for companies, which have been issued a licence prior to 16\u00a0October 2017.<\/p>\n
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No new<\/strong> Category 2 Global Business Licences (GBL2) will be issued as from January 2019.<\/li>\n
The Companies Act, the Limited\u00a0Partnership Act and other related legislation will be amended to allow\u00a0for\u00a0disclosure\u00a0and\u00a0availability of\u00a0Beneficial\u00a0Ownership<\/strong> Information<\/strong> following enquiries related to money laundering and terrorist financing.<\/li>\n<\/ul>\n
Mauritius snapshot<\/strong><\/h4>\n
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Population: 1.3 million, comprising of highly skilled local workforce<\/li>\n
Land area: 2,040\u00a0km2<\/li>\n
Currency: Mauritius rupee<\/li>\n
Languages: English and French (third languages Hindi, Arabic and Mandarin widely spread)<\/li>\n
Time zone: GMT +4<\/li>\n
Education\/ Health: international standard<\/li>\n
GDP (PPP): USD 25.9 billion; USD 20,422 per capita<\/li>\n
Preferential access to\u00a0key markets: Common Market for Eastern and Southern Africa (COMESA), Sothern African Development Community (SADC), Interim Economic Partnership Agreement (IEPA) with European<\/strong> Union<\/strong>, African Growth and Opportunity Act (AGOA) with United States of America<\/strong><\/li>\n
1s<\/strong>t in Africa, 25th worldwide \u2013 World Bank Ease of<\/strong> Doing Business<\/strong> 2018<\/li>\n
OECD<\/strong> White Listed Jurisdiction \u2013 not considered to a tax haven by OECD<\/li>\n<\/ul>\n
Please do not hesitate to contact us if you have any question regarding Mauritius Budget 2018-2019.<\/strong> You can do so via our contact form<\/a>.<\/p>\n