Mauritius

3. Taxation Of Trusts


A. Introduction

A trust is resident in Mauritius for income tax purposes where the trust is administered in Mauritius and a majority of the trustees are resident in Mauritius, or where the settlor of the trust was resident in Mauritius at the time the instrument creating the trust was executed.


The rate at which the chargeable income of a trust is generally taxed has been reduced from 25 per cent to 15 per cent per annum effective as from the year of assessment commencing 1 July 2008.


B. Tax Incentive Trusts

A special taxation regime applies to a trust where:


  • the settlor is a non-resident, or holds a global business licence or another tax incentive trust, and
  • all beneficiaries appointed under the terms of the trust are, throughout an income year, non-resident, or hold a global business licence, or where the trust is a purpose trust whose purpose is carried out outside Mauritius.

Such trusts may opt to be non-resident for income taxation purposes and pay no income tax in Mauritius on their income.

C. Tax Treaties

A trust which is tax resident in Mauritius can benefit from the Mauritian network of double taxation agreements (DTAs). Mauritius has already ratified 36 tax treaties, and is actively negotiating tax treaties with other countries. The network includes not only treaties with major European countries, but also treaties with expanding economies. The treaties currently in force are with Barbados, Belgium, Botswana, Cyprus, Croatia, France, Germany, India, Italy, Kuwait, Lesotho, Luxembourg, Madagascar, Malaysia, Mozambique, Namibia, Nepal, Oman, Pakistan, the People’s Republic of Bangladesh, the People’s Republic of China, Rwanda, Senegal, Seychelles, Singapore, South Africa, Sri Lanka, State of Qatar, Swaziland, Sweden, Thailand, Tunisia, Uganda, the United Arab Emirates, the UK and Zimbabwe.



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