Offshore Guidebook | Real Estate Investor Magazine REIM Offshore 2020 | Page 34

MAURITIUS The Occupation Permit “OP” - valid up to 3 years renewable Permit options The Investor permit The numbers: The Investor – USD100k Investment – GBC/ Domestic Company 3 categories of Occupation permits, namely: I. The Investors permit II. The professional permit III. The self-employed permit The Investor – USD40k Investment – GBC/ Domestic Company USD 100,000 Year 1: Annual turnover ≥ MUR 2 million (USD 55000) Cumulative turnover: ≥ MUR 10 million for subsequent 2 years. (USD280000) An existing investor with a net asset value of at least USD 100,000 Cumulative turnover of MUR 12 million during preceding 3 years (USD330000) Turnover of ≥ MUR 2 million in any one year. Inherited a business in case of death or incapacity of previous investor provided that the net asset value of business is ≥ USD 100,000 Cumulative turnover of MUR 12 million Turnover of ≥ MUR 2 million in any one year. Investment can be used as working capital. High-tech machinery & equipment as part of investment of USD 100,000 Must transfer ≥ USD 25,000 Remaining balance in terms of high-tech machinery and equipment. Research and Development (R&D) in highly innovative sectors can apply for an Innovator Occupation Permit. R&D expense component should constitute of ≥ 20% of total operational expenditure during the research phase. Applicants eligible to apply under this scheme will be required to make an initial investment ≥ USD 40,000. The Residence Permit “RP” – valid up to 3 years renewable 2 categories of Residence permits, namely: I. The Retired Non-Citizen II. Dependants of an OP The Permanent Residence Permit “PR” – valid up to 10 years renewable The following individuals are eligible for a PR provided specific conditions are met: I. Holder of an OP II. Holder of a RP III. Through investment in one of the approved schemes Under section 9(3) of the Mauritius Citizenship Act Investors do have the option to be naturalized as a citizen of Mauritius if: i) he has invested a sum of no less than 500,000 US dollars in Mauritius; and (ii) he has resided in Mauritius for a continuous period, no less than 2 years preceding the date of his application The Innovator permit The Permanent Residence permit The Investor – USD500k Investment – GBC/ Domestic Company – Property/Qualifying business activity aircraft leasing / Leasing and provision of international fibre capacity / Reinsurance and reinsurance brokering. Income from export of goods is taxed at 3% Foreign Tax Credit Dividend Income, Interest Income and Royalties received from a contracting state which has a DTAA with Mauritius are subject to agreed tax rates and exempt in certain cases. Withholding tax suffered at source may be applied against the tax liability arising at year-end thereby reducing the tax rate to zero in certain cases. The Domestic Company Business principally carried out in Mauritius is taxed at 15%, while income from export of goods is taxed at 3% and has been extended to domestic companies in the budget speech of 2018. Dividend Income, Interest Income and Royalties received from a contracting state which has a DTAA with Mauritius are subject to agreed tax rates and exempt in certain cases. Withholding tax suffered at source may be applied against the tax liability arising at year end thereby reducing the tax rate to zero in certain cases. Tax holidays vary between corporations. Look at the table below for indications for the length of tax holidays subject to the corporation: 4-year tax holiday: on income derived by companies from bunkering of low Sulphur Heavy Fuel Oil 5-year tax holiday for corporations holding the following licences: Treasury Management Activities Licence Global Legal Advisory Services Licence Investment Banking Licence Overseas Family Office (Single) Licence Overseas Family Office (Multiple) Licence Companies setting up an e-commerce platform 32 OFFSHORE GUIDEBOOK 2020 Peer to peer lending operators provided 8-year tax holiday for corporations holding the following licences: Global Headquarters Administration Licence Innovation Box Regime –income derived from IP assets developed in Mauritius Companies involved in the development of a marina Is Mauritius still a preferred jurisdiction? Supported by its legislative framework and financial services infrastructure, Mauritius offers an ideal platform for investments around the globe, with a focus on Africa and Asia. Mauritius still holds a solid reputation of being a jurisdiction of substance internationally. SOURCES Vidish jurganuth.SA Seminar 2019, Sovereign Trust Limited OFFSHORE GUIDEBOOK 2020 33