On 27 July 2024, the Mauritian Parliament enacted the Finance (Miscellaneous) Provisions Act 2024, which gives legal effect to the measures outlined by the Minister of Finance in the 2024-2025 Budget Speech. The Act reflects the governments focus on fostering sustainable economic growth, promoting social equity, and enhancing climate responsibility. It addresses a range of national and global challenges while reinforcing Mauritius' commitment to maintaining a robust economic structure, supporting key industries, and ensuring compliance with international standards. Key highlights include initiatives aimed at environmental sustainability, regulatory improvements, and targeted measures to alleviate inflationary pressures and foster inclusive growth.
Income tax
The Introduction of a new Corporate Climate Responsibility levy of 2% of chargeable income of a company, which turnover exceed Rs 50M effective as from the year of assessment commencing 01 Jul 2024, i.e. to those entities with financial year ending after 31 December 2023. Entities benefiting from the partial exemption regime will have their effective tax rate increased from 3% to 3.4% and those not benefiting from partial exemption will now be taxed at 17%.
The following key tax incentive measures brought to incentivize specific economic activities and provides for additional financial relief are:
- The income tax exemption threshold for lump sum pension, retiring, or severance allowances is raised from Rs 2.5 million to Rs 3 million as from the 07 June 2024.
- Interest income from bonds issued by public sector companies for infrastructure projects becomes tax-exempt with approval from the Minister of Finance, Economic Planning and Development as from 01 Jul 2024.
- 100% of income from the sale of virtual assets and tokens is now exempted, similar to the exemption on sale of securities as from 01 Jul 2024.
- Income derived from intellectual property assets by a manufacturing company engaged in medical, biotechnology or pharmaceutical sector and holding an investment certificate will not be eligible for the reduced tax rate of 3% as from 01 Jul 2024.
- The 10-year income tax holiday granted to a captive insurer will apply starting from the income year in which the company starts its operation.
- Companies holding a Robotic and Artificial Intelligence Enabled Advisory Services license, issued by the FSC, can claim an 80% exemption subject to meeting the substance requirements effective as from 01 Jul 2024 subject to meeting the substance requirements.
- An investment tax credit of 15% over 3 years will be granted on capital expenditure incurred in developing AI and patents as from 01 Jul 2024
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