Establishment of offshore companies in Mauritius: non-double taxation agreements
Since launching its international business sector in 1992, Mauritius has signed 43 tax agreements (non – double taxation agreements as well as Double Taxation Agreements – DTAs) with various countries and others are in the process of being negotiated. The island is definitely a commercially attractive destination for investors. Since then, the country has developed its expertise in the field of taxation, becoming one of the local, regional and international leaders in business and trade. What is the purpose of the tax treaty? The tax treaty is not only used to negate double taxation for individuals and businesses alike. In addition to covering income taxes, VAT or other taxes, it also serves the purpose of: Reducing taxes for residents of one of the two signatory countries Eliminating double taxation in favour of a tax credit equivalent to Mauritian tax, Reducing the withholding taxes on dividends, interest and royalties, Exempting capital gains, Conditionally exempting interest payments on loans, Removing exchange controls In addition, non-double taxation agreements (DTAs) provide tax planning opportunities, thus strengthening the image of the jurisdiction as a tax planning centre, allowing control over tax evasion as well as improving the efficiency of cross-border trade. List of Mauritius’ non-double taxation agreements Africa Agreements signed Botswana, Egypt, Lesotho, Madagascar, Mozambique, Namibia, Republic of the Congo, Rwanda, Senegal, Seychelles, South Africa, Swaziland, Tunisia, Uganda, Zambia, Zimbabwe Pending ratification Gabon, Ghana, Kenya, Morocco, Nigeria To be signed by the country Burkina Faso, Cape Verde, Côte d’Ivoire Under negotiation Algeria, Malawi, North Sudan, Tanzania Asia Agreements signed Bangladesh, China, India, Malaysia, Nepal, Pakistan, Singapore, Sri Lanka, Thailand Pending ratification Russia Under negotiation Hong Kong, Vietnam Europe Agreements signed Belgium, Croatia, Cyprus, France, Germany, Italy, Luxembourg, Malta, Sweden, United Kingdom Under negotiation Czech Republic, Greece, Montenegro, Portugal, Spain Middle East Agreements signed Kuwait, Oman, Qatar, United Arab Emirates Under negotiation Iran, Saudi Arabia, Yemen North America Under negotiation Canada West Indies Agreements signed Barbados Under negotiation Saint Kitts and Nevis Other Agreements signed Australia (partial), Guernsey, Monaco To be signed by the country Jersey Under negotiation Gibraltar
