Offshore Guidebook | Real Estate Investor Magazine REIM Offshore 2020 | Page 32

MAURITIUS The gateway to Africa Mauritius’ attractive jurisdiction in business & permits AMY STEADMAN M auritius is regarded as the ‘gateway to Africa’. It incorporates a “mid-shore jurisdiction” in comparison to the classic offshore jurisdiction. It’s a place to nurture legitimate business, with the possibility of expansion in Africa and internationally. Although it’s regarded as a place good for business, it’s also the perfect place to live and retire. Mauritius also allows foreigners to own property and other investments. Mauritius’ system is regarded as smooth and easy when it comes to the incorporation process, banking, taxation, Double Taxation Avoidance Agreements (DTAAs) and compliance. The authorised company If you set up the Authorised company, there is zero tax, however the place of effective management is located outside of Mauritius. This is like the Seychelles IBC or a BVI company, with low set up and maintenance fees. Incorporation GBC (Global Business Corporation) minimum 2 - 4 weeks AC (Authorised Company) minimum 1-2 weeks Banking Client on-boarding and account opening completed in 24 - 36 hours in certain cases On-Boarding – Passport/Business plan/ Structure chart The process starts before or as soon as we start the incorporation process. Taxation Maximum corporate tax rate of 15% Double Taxation Avoidance Agreements (DTAAs) 46 treaties in place / 6 awaiting ratification / 5 await signature Compliance with international standards 30 OFFSHORE GUIDEBOOK 2020 OECD and EU compliant Schemes Smart City Scheme - Offers attractive fiscal and non-fiscal incentives to investors. Property Development scheme - Allows the development of a mix of residences for sale to non-citizens, citizens and members of the Mauritian Diaspora. Film rebate schemes - The scheme allows 30 percent refund on all the Qualifying Production Expenditures (QPPE) incurred by a film producer in respect of his/her project in Mauritius. Regulatory Sandbox licence - offers the possibility for an investor to conduct a business activity for which there exists no legal framework, or adequate provisions under existing legislation in Mauritius. Freight rebate scheme – exporters may apply for a refund of 25% of the Basic Freight Cost to the maximum of USD 300 per 20-feet container and USD 600 per 40-feet container exported to eligible Ports in Africa, Madagascar and Reunion Island. Food processing Scheme - The Registration Certificate (Food Processing) has been introduced to promote global value chain through the cultivation and importation of agricultural products to be used as raw materials for processing into intermediate and finished products and to encourage re-export activities. It’s most commonly used for activities which are not entitled to the benefits attributable to a GBC. This is an appropriate structure for SA expatriates. The Global Business Corporation The Global Business Corporation is taxed at 15% but it can be reduced to 3% through the 80% partial exemption. This is applicable on certain sources of income provided the GBC meets certain substance requirements as listed below: Foreign source dividend / Foreign source interest / Profits of foreign branch / Foreign source profits of a collective investment scheme (CIS) / Closed ended fund / CIS manager / CIS administrator / Investment advisor / Asset manager / Foreign source income from ship and OFFSHORE GUIDEBOOK 2020 31