Dear Readers, We have some good news from Mauritius. Full text below, yet an extract that will be of value to a lot of our clients – Mauritius Investment Dealers and Asset Managers will enjoy tax benefits and effective tax rate for these companies will be lowered from 15% to 3%.
Tax Holiday / Partial exemption
A 5-year tax holiday is granted on emoluments of an asset manager, a fund manager or asset and fund manager who manages an asset base of not less than USD 100 million and who has been issued with a certificate on or after 1 September 2016.
Holders of a certificate issued on or after 1 September 2016 will be exempted from tax on their emoluments for an additional 5 years while new certificate holders will be eligible to a tax holiday of 10 years. In addition, the threshold of USD 100 million in respect of asset base being managed by an Asset/Fund Manager will be reduced to USD 50 million.
The scope of the partial exemption tax regime will be broadened to cover investment dealers and other type of leasing activities.
Commitment to FATF
FATF list of jurisdictions under increased monitoring (“FATF list”)
Mauritius is fully committed and is taking a number of initiatives be it from a regulatory, supervisory and law enforcement perspective, for a swift exit from the FATF list.
The measures announced by the Government include the following:
• Relevant laws have been amended to be in line with the FATF recommendations;
• Creation of a Financial Crime Divisions which will deal with financial crime cases under the purview of the Supreme and Intermediate Court;
• Putting into place of an AML/CFT core group to monitor the implementation of the recommendations of the FATF;
• Establishment of a Financial Crime Commission which shall be responsible to combat white collar crimes, fraud and financial crimes and more importantly to provide the synergy between the various law enforcement and intelligence gathering agencies;
• Qualified trustee shall fall under the definition of a Financial Institution under the FIAMLA;
Other relevant amendments impacting the Financial Services sector
A public company having not more than 50 shareholders may be converted into a private company.
Financial Services Act:
Issue of shares of less than 5% in a Licensee shall not require the prior approval of the FSC unless resulting in a change of control.
Live and work
• Extension of validity period for an Occupation Permit for Professionals from 3 years to 10 years.
• Exemption to apply for an Occupation or work permit for Spouses of OP holders wishing to invest or work in Mauritius.
• The maximum age limit of 24 years for dependent will be waived.
• Introduction of a new category under the Occupation Permit Regime, the 10-Year Family Occupation Permit for those contributing USD 250,000 to the COVID-19 Projects Development Fund.
• Set up of a dedicated concierge service to provide a seamless experience to investors and retirees entering Mauritius.
• Implementation of a privilege club scheme providing a range of incentives to Occupation Permit holders and retirees, ranging from privilege access to hotels, golf courses, restaurants, private medical institutions, amongst others.
• A Premium Visa Scheme has been introduced with the objective to encourage eligible foreigners for long stay in Mauritius for a period of at least one year with the possibility of renewal with attractive incentives and effective as from 1 November 2020.
• A non-citizen who purchases or otherwise acquires an apartment used, or available for use, as residence, in a building of at least 2 floors above ground floor, provided the purchase price is not less than USD375,000 will be issued with a residence permit, including for his dependent, and exempted from the requirement of a work or occupation permit.
• A non-citizen will be eligible for an Occupation Permit irrespective of his visa category when he arrived in Mauritius.
Permanent Residence Permit
(a) Holders of a 10-Year Permanent Residence Permit will have the validity automatically extended to cover a 20-Year period.
(b) Holders of a Permanent Residence Permit will be able to renew their permits and they will be given the flexibility to switch category between investor, professional and retired.
The Work Permit will be extended allowing Mauritians and non-citizen residents to bring foreign carers and maids to work in Mauritius
Mauritius as a destination of choice for retirement
Introduction of a special desk and dedicated portal for foreign retirees providing practical information on accommodation facilities, cultural and leisure activities, and healthcare services; amongst others.