On July 27, 2024, the government of Mauritius enacted the Finance (Miscellaneous Provisions) Act 2024, introducing various tax, regulatory, and permit-related reforms designed to align with global standards while making Mauritius an attractive destination for both companies and professionals. This blog explores the critical updates brought by the Finance Act, including the new Corporate Climate Responsibility (CCR) levy, expanded tax credits for AI and robotics, enhanced incentives for global businesses, and updated residency permits.
Corporate Climate Responsibility (CCR) Levy
One of the headline measures of the Finance Act 2024 is the introduction of the Corporate Climate Responsibility (CCR) levy. Effective from July 1, this 2% levy on corporate profits is a bold step by Mauritius to bolster funding for climate action initiatives. Smaller companies with annual turnovers below MUR50 million (approximately USD 1.1 million) are exempt, encouraging sustainable business growth across different scales. The funds collected from the CCR levy will be directed towards a new Climate and Sustainability Fund, aimed at environmental protection and resilience projects. This makes Mauritius a pioneer in implementing corporate climate responsibility in a way that aligns tax policy with ecological goals.
Enhanced Investment Tax Credits for AI and Robotics
As part of Mauritius’s commitment to attracting cutting-edge technology and innovation, the Act extends the investment tax credit of 15% over three years to include artificial intelligence and patent-related investments, starting July 1, 2024. Companies in Mauritius now benefit from reduced tax burdens when investing in AI and robotics, positioning Mauritius as a forward-thinking hub for tech-driven businesses. This incentive underscores the government’s drive to cultivate a technologically advanced business ecosystem and support companies that contribute to the country's economic and digital transformation.
Updated Tax Holidays and Exemptions
The Finance Act 2024 also introduces modifications to existing tax holidays and exemptions, particularly benefiting companies in specific industries:
Captive Insurers: Tax holidays for captive insurers now apply starting from the income year when operations commence, effective July 27, 2024. This shift offers these companies a clearer tax planning framework.
Robotic and AI Advisory Services & Payment Intermediaries: From July 1, 2025, companies with a Robotic and Artificial Intelligence Enabled Advisory Services license or a Payment Intermediary Services (PIS) license, granted by the Financial Services Commission (FSC), can enjoy an 80% tax exemption if they meet substance requirements. This is a significant draw for tech-driven advisory and payment services firms, reinforcing Mauritius as a tech-friendly jurisdiction.
Collective Investment Schemes (CIS): Clarifying earlier provisions, the 80% partial exemption for licensed CIS administrators now exclusively applies to the license holder’s direct income, effective July 27, 2024. This excludes administrative revenue from third-party management companies, making compliance more transparent.
VAT Zero-Rating for Global Businesses: In a move to attract global corporations, the Act zero-rates VAT for services provided by management companies to entities holding a Global Business Licence, trusts, and foundations with predominantly non-resident founders and beneficiaries. Effective from July 27, 2024, this provision enhances Mauritius’s appeal as a low-tax jurisdiction for international business.
IP-Related Tax Adjustments: To align with global norms, Mauritius will remove the 3% tax rate on income derived from intellectual property assets by manufacturing companies in the medical, biotech, and pharmaceutical sectors, effective July 1, 2025. This change reflects the country’s compliance with international tax regulations while maintaining its competitive edge.
Revised Occupation Permits to Attract Skilled Professionals
Mauritius is further positioning itself as a prime destination for skilled foreign talent with notable changes to its Occupation Permit (OP) criteria:
Lower Income Threshold: The threshold for professionals seeking an Occupation Permit has been reduced from MUR30,000 to MUR22,500, making it easier for qualified individuals to live and work in Mauritius.
Temporary Permits for Experienced Professionals: Professionals with over 10 years of experience can now apply for a three-month temporary Occupation Permit, allowing them to work while their full permit application is processed.
10-Year Expert Permits: In an effort to attract expertise in wealth management, family office services, virtual assets, and virtual tokens, the government has introduced a new 10-year expert Occupation Permit. This long-term permit is expected to attract top talent in emerging sectors and foster a thriving professional community.
Conclusion
The Mauritius Finance (Miscellaneous Provisions) Act 2024 brings progressive updates across tax, investment, and residency policies, designed to make Mauritius a more attractive location for businesses and professionals alike. With initiatives like the Corporate Climate Responsibility levy, expanded tax incentives for AI and robotics, and enhanced residency permits, Mauritius is cementing its position as a forward-looking, globally competitive hub. For companies considering setting up operations or expanding in Mauritius, these reforms provide a compelling backdrop of support and opportunity, making the country an ideal base for growth and innovation.
For more details on setting up a company in Mauritius, or to explore how these changes can benefit your business, feel free to reach out to our team of experts. Mauritius is moving towards a sustainable, tech-oriented future—make sure your company is part of it
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