Table of Contents
- Executive Summary: Key Changes in Mauritius Tax Law (2025–2030)
- Overview of the Mauritian Tax System: Current Framework & Authorities
- Corporate Taxation: Rates, Exemptions, and Compliance in 2025
- Personal Income Tax: New Brackets, Deductions, and Filing Requirements
- International Taxation: Double Taxation Agreements & Global Compliance
- Tax Incentives for Investors: Opportunities in Key Sectors
- Digital Economy & E-Commerce: Tax Implications for 2025 and Beyond
- Transfer Pricing, Anti-Avoidance, and Enforcement Trends
- Penalties, Dispute Resolution, and Legal Recourse
- Future Outlook: Predicted Reforms and Strategic Planning (2025–2030)
- Sources & References
Executive Summary: Key Changes in Mauritius Tax Law (2025–2030)
Mauritius continues to refine its tax framework to maintain competitiveness as an international financial center while meeting global transparency and compliance standards. For the period 2025–2030, key changes are centered on corporate tax adjustments, international tax alignment, and enhanced enforcement.
A significant change effective from July 2024 is the reduction of the corporate income tax rate from 15% to 12.5%, aiming to attract more foreign direct investment while remaining compliant with international tax obligations. This aligns with ongoing efforts to phase out harmful tax practices and to comply with recommendations from the OECD’s Base Erosion and Profit Shifting (BEPS) initiative. Moreover, the alternative minimum tax regime for companies has been abolished to simplify compliance and reduce administrative burdens for taxpayers (Mauritius Revenue Authority).
On the personal income tax front, Mauritius has moved towards a more progressive system. The 2024–2025 Finance Act introduced revised income bands and rates, with the highest marginal tax rate increased to 20% for annual incomes exceeding MUR 3 million. This measure is intended to strengthen fiscal sustainability and address income inequality (Ministry of Finance, Economic Planning and Development).
International tax compliance remains a priority. Mauritius has implemented the OECD’s Common Reporting Standard (CRS) and continues to expand its double taxation avoidance agreements (DTAAs), currently numbering over 45. The government is also preparing to transpose elements of the OECD’s global minimum tax regime (Pillar Two) into domestic law by 2026, in line with G20 commitments (Mauritius Revenue Authority).
Tax administration and enforcement are being modernized through the expansion of electronic filing and real-time reporting requirements for both individuals and businesses. The Mauritius Revenue Authority (MRA) has increased audit activity, with a focus on transfer pricing and cross-border transactions. In 2023, the MRA reported a 14% increase in tax revenue collections, reflecting both economic recovery and improved compliance measures (Mauritius Revenue Authority).
Looking ahead, Mauritius is expected to further digitize tax services and enhance anti-avoidance provisions to meet evolving international standards. Stakeholders should anticipate continuous legislative updates and increased scrutiny of cross-border activities, especially as global tax reforms are implemented over the next several years.
Overview of the Mauritian Tax System: Current Framework & Authorities
Mauritius operates a hybrid tax system combining elements of territorial and worldwide taxation, with a focus on promoting investment and economic growth while ensuring compliance with international standards. The primary legislative framework for tax law in Mauritius is the Income Tax Act 1995, which is periodically amended to align with evolving economic and global requirements. The Ministry of Finance, Economic Planning and Development is responsible for formulating tax policy, while the Mauritius Revenue Authority (MRA) administers and enforces the tax laws.
As of 2025, the standard corporate income tax rate remains at 15%, with certain preferential regimes for qualifying entities, including partial exemption regimes for global business companies and specific incentives for sectors such as manufacturing and financial services. The personal income tax system operates on a progressive rate structure, with the headline rate at 15%. A solidarity levy of up to 25% applies to high earners, primarily affecting individuals with chargeable income exceeding MUR 3 million per annum (Mauritius Revenue Authority).
Mauritius applies a standard Value Added Tax (VAT) rate of 15% on goods and services, with specific exemptions and zero-rated supplies, particularly in relation to exports and essential goods (Mauritius Revenue Authority). Other notable taxes include registration duties, customs duties, and excise duties, although there is no capital gains tax, inheritance tax, or wealth tax in the Mauritian tax regime.
Recent reforms reflect Mauritius’ commitment to international tax compliance and transparency. The country has implemented the OECD’s Base Erosion and Profit Shifting (BEPS) minimum standards, including the economic substance requirements for global business companies and enhanced information exchange protocols. These measures have contributed to Mauritius being removed from the EU’s list of high-risk third countries for anti-money laundering and counter-terrorism financing in 2022, and the FATF grey list in 2021 (Financial Action Task Force).
Tax compliance is enforced through mandatory electronic filing for most taxpayers, ongoing audits, and increasing use of data analytics. In the 2023/2024 fiscal year, tax revenue accounted for approximately 85% of total government revenue, highlighting the centrality of the tax system for public finances (Ministry of Finance, Economic Planning and Development). Looking ahead, Mauritius is expected to continue refining its tax laws to remain competitive, attractive to investors, and fully compliant with evolving international standards.
Corporate Taxation: Rates, Exemptions, and Compliance in 2025
Mauritius operates a globally competitive and transparent corporate tax regime, designed to attract international investment while meeting international standards on tax compliance and information exchange. As of 2025, the standard corporate income tax (CIT) rate remains at 15%. However, the effective tax burden for many companies is reduced due to partial exemptions and sector-specific incentives. For instance, companies deriving qualifying income from export of goods or intellectual property may benefit from an 80% partial exemption, resulting in an effective tax rate as low as 3% on such income. Additionally, Global Business Companies (GBCs) licensed under the Financial Services Act continue to be subject to these exemptions on qualifying income, provided they meet substance requirements in Mauritius Mauritius Revenue Authority.
The partial exemption regime is closely aligned with OECD Base Erosion and Profit Shifting (BEPS) standards. To prevent abuse, companies must demonstrate adequate economic substance in Mauritius—maintaining local staff, expenditure, and management. The Mauritius Revenue Authority (MRA) regularly updates its substance and anti-avoidance guidance to ensure compliance with global tax transparency initiatives Mauritius Revenue Authority.
Tax compliance is managed through a robust self-assessment system. All resident companies are required to file annual CIT returns electronically within six months of their accounting year-end. The MRA has enhanced its e-filing system, with over 95% of corporate tax returns now filed digitally as of 2024. Penalties for late filing and payment have been tightened, with fines up to MUR 20,000 plus interest on unpaid tax balances Mauritius Revenue Authority. Additionally, transfer pricing rules apply to transactions between related parties, requiring contemporaneous documentation and disclosure.
Key statistics from the MRA indicate that corporate income tax contributed approximately MUR 29 billion to government revenue in the 2023/24 fiscal year, accounting for 16% of total tax receipts. The government has signaled an intention to maintain a stable tax environment through 2025 and beyond, focusing on efficiency and compliance rather than rate increases Ministry of Finance, Economic Planning and Development.
Looking ahead, Mauritius is expected to further align its corporate tax framework with evolving international standards, including the ongoing implementation of the OECD Global Minimum Tax (Pillar Two). While the 15% minimum CIT rate is already met, additional reporting and compliance obligations for multinational enterprises are anticipated, ensuring continued access to global markets and maintaining the country’s reputation for tax transparency and good governance.
Personal Income Tax: New Brackets, Deductions, and Filing Requirements
The tax landscape for individuals in Mauritius has evolved significantly for the 2025 assessment year, reflecting the government’s commitment to progressivity and simplification in personal income taxation. The Finance (Miscellaneous Provisions) Act 2024 introduced notable adjustments to tax brackets, deductions, and compliance requirements, aimed at enhancing equity within the Mauritian tax system and aligning with international trends.
As of 1 July 2024, Mauritius transitioned to a revised banded tax rate structure for personal income tax. The new brackets are as follows: income up to MUR 700,000 is taxed at 10%, income between MUR 700,001 and MUR 975,000 at 12.5%, and income exceeding MUR 975,000 at 15%. This replaces the previous flat rate and optional band system, simplifying calculations and targeting relief towards lower and middle-income earners. According to the Mauritius Revenue Authority, these changes are projected to reduce the tax burden for over 60% of taxpayers, particularly benefiting families and single earners in the lower brackets.
On the deductions front, the enhanced Individual Tax Deductions (ITD) regime now allows higher relief for dependents, with the basic allowable deduction raised to MUR 350,000. Additional deductions for the first, second, and third dependent children have been increased to MUR 100,000, MUR 90,000, and MUR 85,000 respectively. Further, taxpayers supporting dependent parents or disabled dependents are eligible for supplementary deductions. These adjustments, outlined by the Ministry of Finance, Economic Planning and Development, seek to address rising living costs and demographic changes.
Filing requirements have also been updated. Electronic filing is now mandatory for all individuals with annual income above MUR 500,000, in line with the government’s digitalization agenda. Employers are required to submit employee statements through the Mauritius Revenue Authority’s e-filing portal, and employees must review and confirm their data before filing. The statutory filing deadline remains 30 September following the tax year, with penalties for late submission and non-compliance strictly enforced. In 2023, over 92% of individual returns were filed electronically, a figure expected to hit nearly 98% in 2025, as per the Mauritius Revenue Authority.
Looking forward, Mauritius is expected to continue refining its personal tax regime, with ongoing stakeholder consultations and periodic reviews. This is part of a broader strategy to ensure tax fairness, improve compliance, and support sustainable economic growth in the face of domestic and global challenges.
International Taxation: Double Taxation Agreements & Global Compliance
Mauritius has established itself as a leading international financial centre with a robust tax framework, underpinned by a strategic network of Double Taxation Agreements (DTAs) and evolving global compliance measures. As of 2025, Mauritius maintains over 45 DTAs in force, facilitating cross-border trade and investment by eliminating double taxation and reducing withholding tax rates on dividends, interest, and royalties for treaty partners. Recent years saw Mauritius renegotiating or updating key DTAs, notably with India and South Africa, to comply with international tax standards and to address base erosion and profit shifting (BEPS) concerns. The Mauritius Revenue Authority regularly updates the list and terms of such agreements.
In terms of global compliance, Mauritius has continued aligning its tax laws with the OECD’s BEPS Action Plan and the European Union’s requirements. Following the removal from the EU’s list of high-risk third countries in 2023, Mauritius has strengthened its anti-money laundering (AML) and counter-terrorism financing (CFT) regimes, as well as its economic substance rules for companies engaged in relevant activities. The country is a signatory to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI), and it exchanges tax information under the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) frameworks, as confirmed by the Mauritius Revenue Authority.
For 2025 and the coming years, compliance expectations for Mauritian entities—especially Global Business Companies (GBCs)—have heightened. Entities must demonstrate substantial economic activity and real presence in Mauritius to benefit from treaty advantages. The Financial Services Commission, Mauritius enforces these substance requirements and conducts regular reviews. Failure to comply can result in penalties, denial of treaty benefits, and reputational risks.
- As of 2024/25, Mauritius’s corporate tax rate remains at 15%, but incentives and partial exemptions exist for specific sectors and activities, subject to meeting substance criteria (Mauritius Revenue Authority).
- The country’s proactive approach to compliance resulted in over 90% of financial institutions participating in CRS and FATCA reporting as of end-2023 (Mauritius Revenue Authority).
Looking ahead, Mauritius is expected to further refine its DTA network and compliance architecture, particularly as global standards evolve and as the OECD’s Pillar Two (global minimum tax) framework advances. Companies operating in and through Mauritius should closely monitor regulatory updates and ensure ongoing compliance to maintain their access to treaty benefits and the jurisdiction’s favourable tax regime.
Tax Incentives for Investors: Opportunities in Key Sectors
Mauritius has established itself as a competitive jurisdiction for investment by offering a robust tax incentives framework, particularly targeted at key sectors such as financial services, manufacturing, technology, and renewable energy. The country’s tax legislation, primarily governed by the Income Tax Act 1995 and subsequent amendments, underpins these incentives, positioning Mauritius as a strategic gateway for investment into Africa and Asia.
For 2025, Mauritius maintains a relatively low and unified corporate tax rate of 15%, with an Alternative Minimum Tax (AMT) provision to ensure minimum contributions by companies. However, several incentive schemes provide either partial or full exemptions to qualifying investors. For instance, the Partial Exemption Regime allows companies engaged in specific activities—such as international trading, ship and aircraft leasing, and investment management—to benefit from an 80% exemption on certain income streams, effectively reducing the tax rate to 3% in these cases. The government continues to tighten substance requirements to comply with international standards set by the OECD, thereby ensuring that these incentives are granted only to entities with substantial activities in Mauritius Mauritius Revenue Authority.
Special Economic Zones (SEZs) facilitate further tax benefits, including customs duty exemptions and preferential tax rates, for investors in targeted sectors like manufacturing and logistics. The government has also prioritized the emerging fintech and ICT sectors by offering tax holidays of up to 8 years for newly registered innovative companies, as well as accelerated depreciation allowances for technology investments Economic Development Board.
Renewable energy is another focal point, with incentives for investment in solar, wind, and biomass energy projects. These include VAT exemptions on equipment imports, investment tax credits, and fast-track licensing procedures. The sugar and agro-industry sectors remain eligible for tax credits and special deductions, reflecting Mauritius’ long-standing commitment to agricultural diversification.
Statistically, the Economic Development Board reports that foreign direct investment (FDI) inflows reached over MUR 22 billion in 2023, with significant contributions from the financial services and real estate sectors. The government projects sustained growth in FDI through 2025 as it expands tax incentive programs and aligns compliance with evolving global tax frameworks Economic Development Board.
Looking ahead, Mauritius is expected to retain its competitive tax regime while further enhancing transparency and compliance. Ongoing reforms will focus on ensuring alignment with the Base Erosion and Profit Shifting (BEPS) standards and reinforcing substance requirements, securing the country’s reputation as a credible, investor-friendly destination in the coming years.
Digital Economy & E-Commerce: Tax Implications for 2025 and Beyond
Mauritius has positioned itself as a regional hub for digital business and e-commerce, prompting significant updates to its tax framework to address the unique challenges of the digital economy. As of 2025, the Mauritian tax authorities have implemented and proposed several measures to ensure the fair taxation of digital services, enhance compliance, and align with international standards.
A key development is the extension of Value Added Tax (VAT) to digital services supplied by non-resident companies to Mauritian consumers. Effective since 2022, the VAT regime requires foreign providers of electronically supplied services—such as streaming, cloud computing, and online marketplaces—to register and account for VAT in Mauritius if their annual turnover exceeds MUR 6 million. This threshold and the broader compliance framework are maintained in the 2024/2025 budget, reflecting the government’s intent to capture a growing share of digital transactions for tax purposes. The Mauritius Revenue Authority (MRA) provides online registration and filing facilities to streamline compliance for digital businesses operating from abroad Mauritius Revenue Authority.
On the corporate tax front, Mauritius applies a standard rate of 15% on resident and non-resident entities deriving income from Mauritian sources. However, digital businesses with no physical presence have historically posed tax collection challenges. To address this, Mauritius has committed to the OECD’s Base Erosion and Profit Shifting (BEPS) Inclusive Framework, including the implementation of minimum standards for the taxation of the digital economy and improvements to tax transparency Ministry of Finance, Economic Planning and Development. The government continues to monitor developments around the OECD’s Pillar One and Pillar Two initiatives, which may lead to further legislative changes in the coming years.
Statistically, digital transactions in Mauritius have surged, with e-commerce revenue estimated to grow by over 15% per annum, reflecting both consumer adoption and business innovation. The number of VAT-registered digital service providers increased by 28% between 2022 and 2024, signaling effective enforcement and growing awareness among foreign suppliers Mauritius Revenue Authority.
Looking ahead, Mauritius is expected to further refine its tax laws to address emerging digital business models, such as cryptocurrencies, gig economy platforms, and cross-border cloud services. The government aims to strike a balance between fostering a competitive digital economy and ensuring robust tax compliance, with ongoing stakeholder consultations and monitoring of international tax reforms likely to shape policy over the next few years.
Transfer Pricing, Anti-Avoidance, and Enforcement Trends
Transfer pricing and anti-avoidance measures have become increasingly central to tax law in Mauritius, particularly as the jurisdiction aligns its regulatory framework with international tax standards. In recent years, the government has undertaken significant reforms to address Base Erosion and Profit Shifting (BEPS) risks and enhance tax transparency, responding to both domestic policy objectives and pressures from global organizations such as the Organisation for Economic Co-operation and Development (OECD).
Mauritius introduced comprehensive transfer pricing regulations effective from 1 July 2022, which now impose documentation requirements on companies engaged in transactions with related parties, both within and outside Mauritius. These rules are applicable to entities with annual gross income exceeding MUR 200 million, requiring them to prepare and maintain contemporaneous documentation to substantiate the arm’s length nature of their related party transactions. Non-compliance may result in penalties and upward adjustments to taxable income by the Mauritius Revenue Authority. The transfer pricing regime is expected to mature in 2025, with increased audits and enforcement actions anticipated as the authorities build capacity and experience.
Anti-avoidance provisions in Mauritius are anchored in the General Anti-Avoidance Rule (GAAR) under the Income Tax Act, empowering the Commissioner-General to disregard or recharacterize arrangements primarily designed for tax benefits. The GAAR’s application has broadened in recent years, particularly in response to international scrutiny over perceived treaty shopping and the misuse of Mauritius’ extensive network of Double Taxation Avoidance Agreements (DTAAs). The Mauritius Revenue Authority has signaled its intention to intensify its review of cross-border structures and to challenge aggressive tax planning arrangements that lack commercial substance.
Key statistics reflect the evolving enforcement landscape: According to the MRA’s 2022/2023 annual report, tax audits and investigations yielded a recovery of MUR 4.6 billion, with a notable focus on multinational enterprises and cross-border transactions. The number of transfer pricing audits is expected to increase through 2025 as the MRA expands its specialized audit teams and analytical tools.
Looking ahead, Mauritius is expected to further tighten its tax compliance and enforcement mechanisms in the coming years. This includes continued alignment with the OECD’s BEPS minimum standards, the implementation of the global minimum tax (Pillar Two), and enhanced exchange of information with foreign tax authorities. Businesses with cross-border operations should anticipate heightened scrutiny, especially regarding transfer pricing documentation and the commercial rationale of tax structures. Proactive compliance and transparent engagement with the Mauritius Revenue Authority will be critical for mitigating enforcement risks in the evolving Mauritian tax landscape.
Penalties, Dispute Resolution, and Legal Recourse
The tax compliance framework in Mauritius is administered primarily by the Mauritius Revenue Authority (MRA), which is responsible for the assessment, collection, and enforcement of tax laws. The legislative basis for penalties, dispute resolution, and legal recourse is set out in the Income Tax Act 1995, Value Added Tax Act 1998, and related regulations, with ongoing amendments to reflect evolving business and compliance landscapes.
Penalties for non-compliance are significant and tiered. For instance, failure to file returns, late payment of taxes, or under-declaration of income can result in penalties ranging from a fixed monetary amount to a percentage of the tax owed. As of 2025, the standard penalty for late filing is 5% of the tax due, plus interest at 0.5% per month (Mauritius Revenue Authority). For deliberate tax evasion or fraud, criminal prosecution and higher penalties, including imprisonment, may be pursued under the Financial Crimes Commission Act 2023 and the Income Tax Act.
Dispute resolution mechanisms are well-defined. Taxpayers who disagree with assessments or penalties may first lodge an objection with the MRA within 28 days of the assessment notice. The MRA is required to review and respond, generally within six months. If unsatisfied, taxpayers can appeal to the Assessment Review Committee (ARC), a quasi-judicial body specializing in tax disputes. The ARC’s decisions can be further appealed to the Supreme Court of Mauritius on points of law (Assessment Review Committee).
The system encourages alternative dispute resolution and negotiation, with the MRA empowered to enter into settlements to expedite cases and reduce litigation. In 2023–2024, over 400 cases were resolved through the ARC, reflecting a robust use of formal dispute channels (Assessment Review Committee).
Looking ahead to 2025 and beyond, Mauritius plans to further digitalize tax compliance and dispute processes, aiming for reduced resolution times and improved taxpayer transparency. The government has signaled ongoing reforms to align with OECD tax standards, meaning stricter compliance measures and potentially greater penalties for non-compliance. This proactive stance is intended to preserve Mauritius’s reputation as a well-regulated financial center while ensuring fair revenue collection and efficient legal recourse for taxpayers (Ministry of Finance, Economic Planning and Development).
Future Outlook: Predicted Reforms and Strategic Planning (2025–2030)
As Mauritius continues to position itself as a leading financial hub in the Indian Ocean region, significant reforms and strategic adjustments in tax law are anticipated between 2025 and 2030. The government’s objectives are twofold: to maintain international competitiveness and to ensure compliance with evolving global tax standards, particularly those set by the Organisation for Economic Co-operation and Development (OECD) regarding Base Erosion and Profit Shifting (BEPS).
One of the most notable trends is the growing alignment of Mauritius’s tax regime with international best practices. In recent years, the country has enacted reforms such as the phasing out of the deemed foreign tax credit regime and the introduction of the partial exemption system for certain categories of income. These measures have been taken in response to recommendations by the OECD and the European Union, resulting in Mauritius’s removal from the EU list of non-cooperative jurisdictions for tax purposes in 2021. Continued vigilance in anti-abuse rules, substance requirements, and transfer pricing regulations is expected, with further refinements likely by 2030 to reinforce the integrity of the country’s tax base and prevent illicit flows Mauritius Revenue Authority.
Digitalisation of tax administration is another key area of strategic planning. The Mauritius Revenue Authority has accelerated the deployment of e-services, including the e-filing of tax returns and e-payment systems. By 2025, over 90% of corporate and individual taxpayers are projected to use digital platforms, improving compliance rates and reducing administrative burdens. Enhanced analytics and data-sharing capabilities are also expected to play a central role in audit and compliance strategies, helping to identify tax risks more efficiently.
With Mauritius’s corporate tax rate currently at 15%, competitive regional positioning remains a priority. However, ongoing global discussions—particularly with respect to the OECD’s Pillar Two initiative establishing a global minimum effective tax rate—may prompt further reforms. The Mauritian government is closely monitoring these developments and is expected to adjust its tax legislation to remain compliant, potentially introducing new minimum tax rules or revising exemptions to maintain its attractiveness without breaching international commitments Ministry of Finance, Economic Planning and Development.
Key statistics underscore the importance of these reforms: tax revenue accounted for approximately 21% of Mauritius’s GDP in 2023–2024, with a steady upward trajectory expected as compliance measures and digital tools mature. Strategic planning for 2025–2030 will likely focus on broadening the tax base, reducing reliance on specific sectors, and further streamlining incentives to attract quality foreign investment while safeguarding fiscal sovereignty Ministry of Finance, Economic Planning and Development.
