Regulatory Framework

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Private law is largely based on the Napoleonic Code, whilst public and administrative laws – including company law – draw on English Common law. After achieving independence in 1968, Mauritius adopted a constitution based on the British parliamentary system and, although the island became a Republic in 1992, it remains a member of the Commonwealth and the ultimate court of appeal is the Privy Council.

Mauritian Law relating to the financial services sector is unparalleled and fast becoming the most innovative and refined legislative jurisdiction for offshore investment, wealth management and business services.

Mauritius law is based on a mixture of French (Civil Law) and English (Common Law).

Mauritian Trust Legislation

The legislation applicable to trusts consists of the following:

The Trust Act 2001

Mauritian Company Legislation

Current legislation in respect of companies is based on The Companies Act 2001. Other related legislation includes:

  • The Protected Cell Companies Act 1999
  • The Financial Services Development (Amendment of Schedules) Regulations 2001
  • The Financial Services Development Regulations 2001
  • The Financial Intelligence and Anti-Money Laundering Act 2002
  • The Prevention of Corruption Act 2002
  • The Prevention of Terrorism Act 2002
  • The Prevention of Terrorism (Special Measures) Regulations 2003
  • The Financial Intelligence and Anti-Money Laundering Regulations 2003
  • The Convention for the Suppression of the Financing of Terrorism Act 2003
  • The Securities Act 2005
  • The Insurance Act 2005
  • The Protected Cell Companies Act (Amendment of Schedule) Regulations 2005
  • The Financial Intelligence and Anti-Money Laundering (Amendment) Regulations 2006
  • The Financial Services Act 2007
  • The Financial Services (Consolidated Licensing and Fees) Rules 2008

The tax regime of Mauritius comprises the following:

  • A GBC 1 is subject to a flat rate of corporate tax of 15%. But generous foreign tax credits are available up to 80% of the Mauritian tax liability so that a GBC 1 will pay a net effective tax rate of 3% only.
  • There is no capital gains tax.
  • There is no withholding tax on dividends, interest and royalties.
  • A GBC 2 is exempt from all forms of taxation.
  • There are no inheritance tax, estate duty or gift taxes
  • No exchange controls; dividends and capital can be freely repatriated
  • No death tax
  • Personal Income Tax of 15%
  • Value Added Tax is 15%