Mauritius has long positioned itself as a gateway for investment into Africa and Asia, combining political stability, a hybrid legal system, and a relatively simple tax framework. For years, its appeal also rested on the ability to structure operations efficiently from a tax perspective.
That context is changing. Blue Azurite, your trusted partner in navigating the global financial landscape, breaks it down for you.
In 2026, a series of tax measures introduced under the Finance Act 2025 will reshape how businesses are taxed, reported and monitored. While most of these changes came into effect on July 1st, 2025, some of them also apply from January 1st, 2026, meaning they will affect companies setting up now, as well as those already operating in the country.
For foreign investors considering Mauritius as a base, the message is not that the country has become uncompetitive. Rather, the rules are becoming more explicit, more standardised, and more closely aligned with global tax norms.
Corporate tax rate stays at 15%, but minimum taxation expands
Mauritius continues to apply a flat corporate income tax rate of 15%, and there has been no increase in the headline rate. However, several new mechanisms now ensure that companies above certain thresholds pay at least a minimum level of tax, regardless of incentives, allowances or exemptions.
These measures primarily affect large multinational groups, companies in selected sectors, and higher-income operating businesses.
Global minimum tax: Mauritius aligns with OECD Pillar Two rules
One of the most significant changes for foreign investors is the introduction of the Qualified Domestic Minimum Top-Up Tax (QDMTT), Mauritius’ response to the OECD’s global minimum tax initiative under BEPS Pillar Two.
Who is concerned
The QDMTT applies to companies that are part of a multinational enterprise group with consolidated global revenues of at least €750 million in at least two of the previous four financial years. If such a group has a Mauritius-resident entity, that entity may now be subject to additional tax.
What changes in practice
If the effective tax rate of the group’s Mauritius operations falls below 15%, a top-up tax becomes payable in Mauritius to reach the minimum threshold. Importantly, the effective tax rate is calculated under Pillar Two rules, which differ from local tax rules. Certain incentives or credits that previously reduced the tax burden may no longer lower the effective rate for minimum tax purposes.
The QDMTT applies to income years starting on or after 1 July 2025, making it fully relevant for 2026 financial statements.
Companies must notify the Mauritius Revenue Authority within six months of the end of the group’s financial year and file a dedicated QDMTT return within 15 months.
For large foreign investors, this shifts tax planning away from entity-level optimisation toward group-wide modelling and coordination.
Alternative Minimum Tax: A 10% floor for selected sectors
Mauritius has also introduced an Alternative Minimum Tax (AMT) for companies operating in certain sectors that have traditionally benefited from significant deductions.
The AMT mainly affects:
- Hotels and hospitality;
- Insurance companies;
- Financial services and intermediation;
- Real estate activities;
- Telecommunications.
If a company’s normal corporate tax liability is below 10% of its adjusted book profits, it must instead pay tax calculated at 10% of those adjusted profits. The calculation is based on accounting profits, with specific adjustments. Tax credits cannot be used to reduce the AMT.
The measure applies from the year of assessment 2026/27, making it directly relevant to new investments in these sectors. For foreign investors, the AMT limits the extent to which accounting profitability and taxable income can diverge, particularly where incentives or allowances are significant.
Fair Share Contribution: An additional levy for larger businesses
Another notable measure is the introduction of the Fair Share Contribution (FSC), which applies in addition to corporate income tax.
A company becomes liable for FSC if:
- Its taxable supplies exceed MUR 24 million, and
- Its chargeable income also exceeds MUR 24 million in an accounting year.
This threshold captures many operating companies, including subsidiaries of foreign groups.
The FSC is calculated on chargeable income:
- 2% for companies taxed at 3%.
- 5% for companies taxed at 15%.
Banks face additional surcharges on certain domestic income.
The measure applies to income derived between 1 July 2025 and 30 June 2028 and requires quarterly reporting and payment.
For investors, this introduces an extra layer to the effective tax burden, particularly for profitable, locally active businesses.
VAT changes: Digital services and cross-border flows
Value-added tax remains set at 15%, but changes that took effect from 1 January 2026 have direct implications for foreign investors.
VAT on digital services supplied from abroad
Specified digital and electronic services supplied by foreign providers to Mauritius-based customers become subject to VAT. This includes:
- Software and SaaS;
- Cloud services;
- Online advertising;
- Digital platforms and subscriptions.
Foreign companies selling such services in Mauritius may face registration or compliance obligations, depending on how they operate.
Broader reverse charge rules
The reverse charge mechanism is extended to all VAT-registered persons, including banks, receiving services from foreign suppliers. This places greater emphasis on identifying, classifying and accounting for imported services correctly.
Lower VAT registration threshold: Earlier compliance for new businesses
The VAT registration threshold has been reduced from Rs 6 million to Rs 3 million in annual taxable turnover. For foreign investors setting up small or medium-sized operations, this means VAT registration may be required much earlier in the business lifecycle than before. This has knock-on effects for pricing, invoicing, cash flow management and accounting systems.
E-invoicing: Compliance becomes more digital
Mauritius continues to expand its mandatory e-invoicing framework as part of broader tax administration reforms. From 2026, companies with an annual turnover of Rs 80 million or more are expected to comply with e-invoicing requirements, down from the previous Rs 100 million threshold. For foreign investors, this reinforces the need to align internal systems with local reporting standards from the outset.
Why local expertise matters more than ever
The tax changes taking effect in 2026 do not undermine Mauritius’ appeal, but they do make the operating environment more structured and more demanding. Minimum tax rules, sector-specific floors, additional levies and expanded VAT obligations mean that foreign investors can no longer rely on headline rates alone when assessing costs and compliance.
In this context, local execution and regulatory understanding become critical. Blue Azurite, a Mauritius-licensed management company regulated by the Financial Services Commission, supports foreign investors with company setup, regulatory compliance, corporate advisory and ongoing tax and reporting obligations. Contact us now to learn more about optimisation and to better understand how the rules apply in practice and how to meet them efficiently.
