Answer ... There is a single tax regime in Mauritius.

Answer ... Corporate entities will attract income tax and value added tax (VAT), subject to any exemptions they may avail of. The imposition of VAT depends on the turnover and activities of the corporate entity. Corporate entities may also be liable to corporate social responsibility charges, subject to certain conditions.

The headline rate for income tax is 15% subject to any exemption or tax holidays that the corporate entity may avail of. For VAT, it is also 15%.

Answer ... Corporate income taxation is based on the chargeable income of a corporate entity. ‘Chargeable income’ is defined as the net income of the company (ie, gross income less any allowable deductions). In some specific cases (ie, when applying the arm’s-length provision or the controlled foreign corporation rules set out in the fiscal legislation), the Mauritius Revenue Authority can revise the chargeable income of a corporate entity.

Answer ... Different treatment may apply in terms of the exemptions available for certain streams of income, such as foreign dividends or interest. There is no tax on capital gains in Mauritius.

Answer ... Mauritius has a worldwide regime; therefore, a corporate resident in Mauritius may be taxed on its worldwide income.

Answer ... Unutilised tax losses may be carried forward and offset against the net income of the taxpayer for the next five income years. However, such tax losses will not be available to be carried forward where:

• there has been more than a 50% change in the shareholding of a company;
• the tax loss is attributable to annual allowance claimed on capital expenditure incurred on or after 1 July 2006; or
• the tax loss is attributable to expenditure incurred on deep ocean water air conditioning, water desalination or double deductions claimed on qualifying expenditure directly related to existing trade or business.

The Income Tax Act 1995 imposes no restrictions on the use of tax losses incurred on foreign activities against net income derived from domestic activities and vice versa, in respect of the same taxpayer.

Answer ... Only the legal owner of the income is taxed, subject to certain anti-avoidance provisions.

Answer ... Since 2019, small enterprises (ie, companies with an annual turnover of less than MUR 10 million and which are engaged in prescribed activities) may, by irrevocable notice, on or before the due date for the filing of their return of income, elect to pay a presumptive tax at the rate of 1% of their gross income.

Answer ... Partnerships (including sociétés) are generally tax transparent.

Resident trusts are generally subject to tax in the same way as companies.