Tax and Accounting Regulations

A coherent offshore tax planning strategy is essential to maximize the effectiveness of offshore companies. Eltoma can assist by structuring the most tax efficient strategy to satisfy your requirements. Eltoma will guide you as to which jurisdictions offer the best tax structure by identifying the types of tax payable as well as applicable exemptions and incentives. Eltoma will provide tax planning advice that will identify which is the most favorable tax efficient jurisdiction in which to incorporate.

Below is an overview of the tax and accounting regulations for GBC1 and GBC2 Companies in Mauritius.

Corporation Tax:

  • GBC1 - Utilizes the unilateral foreign tax credit which stands at 80% of the Mauritian Tax Rate, which leaves a residual liability of 20% of the Mauritian rate which is equal to 3%. There are current discussions on possible further reductions on this rate.
  • GCB2 – 0% tax rate on worldwide profits

Income Tax:

  • GBC1 – Income tax is 15% however can be reduced to 3% due to foreign tax credits
  • GBC2 – No taxation on income

Royalties:

  • GBC1 – No payment of taxation on royalties. Royalty fees paid to foreign affiliates are allowed as expense items.
  • GBC2 – No payment of taxation on royalties

There following are exempt from tax for both a GBC1 and a GBC2: Dividends, Interest, Capital Gains, Capital Duties or Net Worth.

International aspects of taxation:

  • Compliancy – Anti-avoidance regulation is strictly enforced.
  • Transfer Pricing – There is no specific legislation in Mauritius tax code.
  • Double Taxation Treaties - GBC1 – Mauritius has signed Double Taxation Treaties with the several countries including: China, India, Germany, France, the UK, Singapore, South Africa, Italy, Malaysia and Indonesia.
  • Double Taxation Treaties - GBC2 – Cannot take advantage of the Double Taxation Treaties as these companies are not tax resident in Mauritius.

Annual reporting requirements:

  • GBC1 – Required to file an audited profit and loss account and balance sheet annually with the Financial Services Commission within 6 months of the financial year end. Accounts must be prepared in accordance with internationally accepted accounting standards. Tax returns must be filed with the Income Tax Authorities.
  • GBC2 – Required to produce financial statements to reflect the financial position. Annual accounts must be filed with the authorities within six months of the balance sheet date and details of the beneficial owner along with an outline of the company objectives must be submitted to the Financial Services Commission. No audit is required.

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