Brent Consulta accompanies its clients through the lifecycle of their projects and assists them in achieving their growth strategies; from offering the relevant advice on structuring matters at the inception stage up to providing solutions at the exit stage.
Its innovative approach coupled with its ability to provide tailor-made solutions to the ever-evolving needs of the sophisticated financial market have been the linchpin of its success. It is important for you to protect yourself, your family and your business against unpredictable circumstances, with asset protection and succession planning both being essential components of a robust risk management plan.
Threats may come your way – country risks, market volatility, divorces, malpractice claims, lawsuits - and your first line of defence is to protect your assets. Brent Consulta assist with licensing of family businesses and residency permits – providing security for the whole family.
More than 20,000 investment structures are serviced by Management Companies in Mauritius.
The Mauritian Global Business Centre does not apply foreign exchange control and all the free repatriation of profits.
The Mauritian tax system is simple and competitive.
• Both corporate tax and personal income tax, as well as Value Added Tax (VAT), are capped at 15%
• There are no capital gains tax, no tax on dividends paid by a Mauritian company no withholding tax on dividends paid
• No inheritance tax
• Foreign companies and entrepreneurs are also encouraged to set up their company in Mauritius
• In fact, there is no restriction on ownership of companies and Mauritius allows for 100% foreign shareholding.
Domestic Company
Is domiciled and does business in Mauritius.
A domestic company can be set up for various activities including Trading, Investment Holding, and Consulting Services amongst others.
The activities can be conducted with residents as well as with non residents of Mauritius.
Corporate tax: 15%. Same can be reduced to effectively 3% through a partial exemption of 80% of income resulting from foreign dividends, foreign interest, foreign permanent establishments, leasing of aircraft and ships and exported manufactured goods.
Corporate Social Responsibility [CSR] tax: 2%, being applicable to chargeable income. VAT registration of company is compulsory if turnover is exceeding Rs. 6 million.
Restrictions
If the DC conducts business predominantly outside of Mauritius and at least 50% of shares are held by non-citizens of Mauritius, the DC requires a Global Business License.
Global Business Corporation (GBC)
The Global Business Corporation (GBC) is classified as an offshore corporation and resident in Mauritius for tax purposes.
A GBC can benefit to a 80% tax exemption on certain revenue streams and access to the Mauritius network of Double Taxation Avoidance Agreements (DTAA).
If the GBC holds a Tax Certificate, it can benefit from the network of Double Taxation Agreements, which makes it a cost-effective corporate medium for international tax planning. Mauritius has signed Double Taxation Agreements with many countries in Africa, Europe and Asia.
Moreover, although the rate of tax for GBC stands at 15%, it can benefit from a partial exemption regime whereby 80% of the income streams will be debarred from tax, subject to meeting substance requirements.
The revenue streams that can benefit from the 80% partial exemption regime are:
• Foreign source dividend, provided that it has not been allowed as deduction in source country - Income derived by a Collective Investment Scheme, Close End Funds, CIS manager, CIS
administrator, Investment Adviser or Asset Manager
• Income derived by companies engaged in ship and aircraft leasing
• Income derived by a company from reinsurance and reinsurance brokering activities
• Income derived by a company from leasing and provision of international fibre capacity
Permits and Relocation
Relocating your personal and professional activities can bring numerous advantages, especially when choosing Mauritius.
Occupation Permit
• Whether you are a professional, a self-employed, an investor, a High-Net-Worth Individual (HNWI) , you can establish your residency in Mauritius by applying for the Occupation Permit (OP).
Residency in Mauritius as a retired non-citizen
• Non-Mauritian citizens, above the age of 50, may also decide to retire and establish their residency in Mauritius under a Residence Permit (RP).
Taxation
• An individual becomes resident in Mauritius if he or she is present in the country for: at least 180 days during an income tax year (ending on 30th June); or
• for 270 days in aggregate during a given tax year and the previous two tax years.
Trusts are legal structures used for wealth management purposes and under Mauritian laws, such structures are mainly governed under the Trust Act 2001 and the Income Tax 1995. The settlor of the Trust transfers property or assets to the Trustees, as per the terms laid out in a Trust deed, for the Trustees to hold and administer for and on behalf of beneficiaries.
The essence of the Trust concept is the separation of legal and beneficial ownership, i.e. the property is legally owned by the Trustees but is held and administered for the benefit of the beneficiaries.
Assets that can be held by an offshore Trust
• Portfolios (shares and other stocks) in both quoted and unquoted companies.
• Investment portfolios.
• Real and intellectual property.
• Bank deposits.
• Life assurance policies issued on the life of the Settlor.
Benefits for setting up and offshore Trust
• No documents are made public
• Wealth protection
• Tailored to specific family requirements
• Recognized in all common law jurisdictions
• An important tool in international income, capital gains and estate tax planning
• Used by corporations for employee benefit plans, retirement and stock option schemes, insurance plans and special financing arrangements
Characteristics of Investment Funds/ Private Equity
An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage.
A Mauritius Investment Fund can be structured as: - A Company limited by shares;
A protected cell company where there is a single legal entity but which may be segregated into cells, such that the assets and liabilities of each cell are legally separate from the assets and liabilities of any other cell; and
A Limited Partnership where two or more (Partners) have agreed to carry any lawful business from within Mauritius with persons both in or outside Mauritius with a view to make profits.
Funds can either be:
Open-ended – with a variable share capital – these fall under the Collective Investment Scheme (“CIS”) category.
Closed ended -with a fixed share capital, often commonly known as CEF or private equity funds.
Legislations pertaining to Funds
• Protected Cell Companies Act 1999
• Companies Act 2001
• Financial Intelligence & Anti-money Laundering Act 2002
• Prevention of Corruption Act 2002
•Securities Act 2005
• Financial Services Act 2007
•Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008 Limited Partnership Act 2011
• Limited Liability Partnership Act 2016
• Variable Capital Companies Act 2022
Taxation of Funds
80% of the foreign-source income derived by a collective investment scheme (CIS), Closed-end fund (CEF), CIS Manager or CIS Administrator will be exempted from income tax.
Funds set up in Mauritius enjoy a low tax regime and have access to an extensive network of 45 double taxation treaties (DTAAs);
No capital gains tax and no withholding tax on dividends and interest in Mauritius. There are also no exchange controls in force and funds can be repatriated freely;
5 years Tax holiday for officers of CIS Managers and Asset Management Companies provided the following conditions are satisfied:
• The officer must be resident in Mauritius;
• The asset base being managed must be an average of USD 100 million over the
last financial year; and
• The employer of the officer must submit a declaration to the FSC, to the effect that the officer has managed an asset base averaging USD 100 million over the last financial year, signed by two directors and certified by the auditors.
Global shared services Licence
Global Shared Services entail the provision of certain facilities by a regulated financial services company to its related entities.
The services that may be provided under this licence includes:
• Record-keeping
• Reconciliations
• Payment of Bills
• Periodic Reporting
• Tax advisory and administration
• Other services as may be approved by the FSC in Mauritius
Global Headquarter licence
The Mauritian Government has been actively promoting Mauritius as a financial headquarter and has introduced the ‘Global Headquarters Administration’ (“GHA”) licence in 2016.
The GHA licence is provided to a holding company, incorporated in Mauritius and belonging to a well-established international group to set up or relocate its regional administration, procurement and accounting functions to Mauritius;
It enables International companies to enjoy a 8- year tax holiday and focus on growing their business, strategise this tax holiday fund into the company, and have international employees work in Mauritius where the weather is great all year round.
The GHA licences are issued to companies which provide 3 of the following services to at least 3 related corporations:
• Administration and general management;
• Business planning and development and coordination;
• Economic or investment research and analysis and
• Services related to international corporate headquarters in Mauritius.
Suite 005
Grand Baie Business Park
Grand Baie, Mauritius
30515
La Balise Business Park - Office
Block B, A3 Royal Road
Grande Rivière Noire , Mauritius
90601
