Mauritius Finance (Miscellaneous Provisions) Act 2020 – Key legal highlights
Highlights of the Finance (Miscellaneous Provisions) Act 2020 The Finance (Miscellaneous Provisions) Act 2020 (the Finance Act 2020) was gazetted on 07 August 2020 to implement the measures announced in the National Budget presented by the Minister of Finance and Economic Development on 4 June 2020. This highlight sets out the main changes proposed to the tax and corporate legislations which are relevant to the Global Business sector in Mauritius. The Financial Services Act Moneylenders will now be licensed by the Financial Services Commission (FSC) instead of the Bank of Mauritius (“BoM”) as was the case previously. The FSC has also been empowered to license and regulate Peer-to-Peer Lending Platforms. New rules have been recently issued on Peer-to-Peer Lending Platform by the FSC. Amendments have been made to provide for prior notice of not less than 30 days to be given to the FSC when a licensee holding a financial services licence wishes to surrender its licence to the FSC and to provide a timeframe to licensees for a proper transfer of business operations to another licencee. The FSC has been empowered to extend the timeline for filing of financial statements during a curfew period or situation of emergency or natural disasters. Amendments have been made to enable the FSC to provide exemptions for filing of annual financial statements where the FSC is of the opinion that it is not applicable to a person or class of persons. An auditor shall have an obligation to report to the FSC if during the course of its audit of a Global Business Company or any licensee of the FSC, it becomes aware of any matter which gives the auditor reasonable ground to believe that the licensee has contravened any law, has committed or likely to commit a financial crime or serious irregularities have occurred or the licensee’s ability to continue as a going concern has been jeopardised. The Companies Act The Board of directors of a public company will be required to include at least two independent directors. An independent director has been defined as a non-executive director who: Is not an employee Does not have material business relationship with the company either directly or as a partner, shareholder, director or senior employee of an organisation that has such relationship with the company Does not receive remuneration from the company except remuneration or any other benefit given to him as a director Is not a nominated director representing a substantial shareholder Does not have close family ties with any of the advisors, directors or senior employees of the company Does not have cross directorship or significant link with other directors through involvement in other companies or other organisations Has not served on the Board for more than nine continuous years from the date of his first election In addition to the existing duties in the Companies Act, a director will also be required to act in a manner which is not oppressive, unfairly discriminatory or unfairly prejudicial to shareholders. The Economic Development Board Act The Smart and Innovative Mauritius Development Scheme has been introduced. This scheme concerns projects in the fields of: Additive manufacturing Data economy High tech farming and smart agriculture Life sciences and biotechnology Smart manufacturing and assembly of electric vehicles Virtual economy Technical education and training programmes in any of the above fields Any person wishing to undertake projects in the above fields in Mauritius may make an application with the Economic Development Board (EDB). Guidelines are expected to be issued by the EDB on same. It is highly likely that incentives will be provided to investors investing in this scheme. The Business Obstacle Alert Mechanism has been introduced to enable an enterprise to alert the EDB of any delays faced when applying for a licence which will enable the EDB to enquire about the issue, make recommendations and publish remedial action. The Yacht Promotion Scheme has been introduced. Currently, super yachts can visit Mauritius on the condition of securing a series of approvals and permits required from different Government entities including berthing rights, immigration, customs, authorisation to conduct inland flights via onboard helicopters, access to other Mauritius dependencies and territories. This scheme would provide for streamlined procedures and licencing to facilitate access of yachts and their passengers to Mauritius catering for multiple berthing options, rights for helicopter flights and gaming among others. The EDB is currently working on the operationalisation of the scheme with a planned entry in operation in December 2020. The Immigration Act To make it more attractive for foreigners to reside and work in Mauritius, the following measures have been passed under the immigration laws: The validity of a Permanent Residence Permit has been extended from 10 to 20 years. A holder of an Occupation Permit (which allows a non-citizen to live and work in Mauritius) will be allowed to bring his/her parents to live in Mauritius as his dependents. The validity of an Occupation Permit for an investor or self-employed non-citizen has been extended from three to 10 years as from the date of issue of the Occupation Permit. Non-citizen who has been a holder of an Occupation Permit or a Residence Permit as retired non-citizen for 3 years will qualify for a Permanent Residence Permit provided that the eligibility criteria are met. Non-citizens who have held an Occupation Permit or a Residence Permit for at least three years before 01 September 2020 may now apply for a Permanent Residence Permit. The minimum investment required to obtain a Permanent Residence Permit for non-citizen investors, self-employed non-citizens, or retired non-citizens has been reduced from USD 500,000 to USD 375,000, subject to certain conditions. Holders of Occupation Permits as professionals or holders of Residence Permits as a retired non-citizens may now invest in any business in Mauritius provided that they do not manage or work in the business and do not derive any salary or employment benefits from the business. Nevertheless, holders of Occupation Permits as professionals may hold shares in a business where they are employed provided that
