Mauritius gazettes Finance (Miscellaneous Provisions) Act 2024

The government of Mauritius promulgated and gazetted the Finance (Miscellaneous Provisions) Act 2024 on 27 July to implement the measures announced in the Budget Speech on 7 June.

The main tax-related measures include the introduction of a Corporate Climate Responsibility (CCR) levy, equivalent to 2% of a company’s profits, with an exemption from the levy for companies with a turnover of less than MUR50 million (c. USD 1.1 million), with effect from 1 July.

The funds raised by the CCR levy are to be used to support national initiatives to protect, manage, invest and restore the country’s natural ecosystem and combat the effects of climate change. A Climate and Sustainability Fund will be set-up to implement this agenda.

Other measures included in the Act are:

• The extension of the investment tax credit of 15% over three years to include artificial intelligence and patents, with effect from 1 July 2024.
• Changes in the application of the income tax holiday granted to a captive insurer so that the holiday applies starting from the income year in which the company starts its operation, with effect from 27 July 2024.
• The introduction of an 80% partial exemption on income derived by a company holding a Robotic and Artificial Intelligence Enabled Advisory Services licence issued by the Financial Services Commission (FSC) and on income derived by Payment Intermediary Services (PIS) licence holders, if substance requirements are met, with effect from 1 July 2025.
• Clarification that the 80% partial exemption granted to a licensed collective investment scheme (CIS) administrator only applies for the licence holder and does not apply to income derived from the provision of administrative services by a management company to a CIS licence holder, with effect from 27 July 2024.
• VAT zero-rating for services provided by a management company to corporations holding a Global Business Licence, trusts whose settlor and majority of beneficiaries are non-residents, and foundations whose founder and majority of beneficiaries are non-residents, with effect from 27 July 2024.
• The removal of the 3% tax rate on income derived from intellectual property assets by a manufacturing company in the medical, biotechnology or pharmaceutical sector to comply with international norms, with effect from 1 July 2025.
• The threshold for Occupation Permits for professionals decreases from MUR30,000 to MUR 22,500, with effect from 27 July 2024.
• Professionals with at least 10 years of experience are eligible for a three-month temporary Occupation Permit to work while their application is processed, with effect from 27 July 2024.
• Introduction of a 10-year expert Occupation Permit to attract foreign talents in wealth management, family office, virtual assets and virtual tokens, with effect from 27 July 2024.