Mauritius Adopts Amendments to Finance Act 2020

Mauritius government adopts a set of amendments to the Finance Act. It is required for recovery of the tax and budget economy and overcoming COVID-19 pandemic consequences. In particular, the amendments involved the companies working in the inland waters of Mauritius. The organizations will obtain “tax holidays” in corporate tax within the next 8 tax period. Also, upon observance of certain requirements, the companies can obtain VAT exemption when purchasing the equipment required for fish farming and fishing or other aquacultures.   

The tax reliefs will also apply to the educational institutions, whose branches are presented on Mauritius’ territory. If the university ranks among Top 500 Universities in the World, its branch will be exempt from tax for 8 years, beginning from the year when the branch started its activities. In addition, the higher education institutions will not have to pay VAT when purchasing equipment, educational materials or software.

However, the reliefs will not be for everyone. VAT will be imposed for foreign software vendors and digital services providers from August 7, 2020. In this context, the ‘foreign vendor’ is the company, which is registered outside Mauritius and does not have its own representative office within the country’s territory.

Law&Trust law firm offers its services to the clients working or providing services on Mauritius’ territory. We will tell you in detail how to obtain necessary exemptions and help to prepare necessary documents.