Investment incentives in Mauritius

Mauritius has a number of tax incentives that vary depending on the industries.

  1. Export Enterprise Scheme

The Export Enterprise Certificate is granted to export oriented enterprises, which export their entire production although authorization to sell a small percentage on the local market (10 to 20%) may be obtained, depending on the nature of the industrial activity.

Incentives

  • No customs duty or sales tax on raw materials & equipment
  • Corporate tax of 15%
  • No tax on dividends
  • No capital gains tax
  • Free repatriation of profits, dividends and capital
  • 60% remission of customs duties on buses of 15-25 seats used for the transport of workers
  • Exemption from payment of half the normal registration fee on purchase of land and buildings by new industrial enterprises
  • 50% relief on personal income tax for 2 expatriate staff

  1. Pioneer Status Enterprise Scheme

The scheme aims at encouraging the transfer of technology, creating new support industries for the high value-added sector, for the development of priority sectors and pioneer services. Under the Pioneer Status Scheme, operators can both export and sell their services on the local market without any restrictions.

Incentives

  • No customs duty or sales tax on specific raw materials &equipment (list of raw materials and equipment as established by the Act)
  • Corporate tax of 15%
  • No tax on dividends
  • Free repatriation of profits, dividends and capital

  1. Strategic Local Enterprise Scheme

The scheme is directed towards local manufacturing enterprises, which contribute to the economic, industrial and technological development of the country.

Incentives

  • Corporate tax of 15%
  • No tax on dividends

  1. Modernization and Expansion Scheme

This scheme aims at accelerating the modernization, expansion and diversification of existing manufacturing enterprises by encouraging them to invest in modern equipment, in computerization and in the introduction of pollution control technology.

Incentives

  • No customs duty on production equipment
  • Income Tax credit of 10% (spread over 3 years) of investment in new plant and machinery, provided at least Rs 10 million are spent and this occurs within two years of date of issue of certificate. (This is in addition to existing capital allowances, which amounts to 125% of capital expenditures).
  • Enterprises incurring expenditure on anti-pollution machinery and plant benefit from a further incentive, i.e. an initial allowance of 80% instead of the normal 50%.

  1. Industrial Building Scheme

The scheme aims at encouraging the construction of industrial buildings whose floor space exceeds 1,000 m².

Incentives

  • Corporate tax of 15%
  • No tax on dividends
  • Registration dues for land purchase: 50% exemption
  • A fiscal incentive exempting the application of the Landlord and Tenant Act, that is rent control, to holders of the Industrial Building Enterprise Certificate.

  1. Small and Medium Enterprise Scheme

The scheme aims at promoting the development of SME’s and at integrating them into the industrial landscape. It applies to enterprises whose value of production equipment does not exceed Rs 10 million.

Incentives

  • Corporate tax of 15%
  • No customs duty on production equipment
  • Concessionary loan schemes in order to facilitate access to finance
  • Availability of SME industrial estates equipped with IT facilities

  1. Export Service Zone

This scheme aims at encouraging the development of marketing services and expertise in support of the manufacturing sector. Other activities include translation works and consultancy services.

Incentives

  • Corporate tax of 15% and exemption of Income Tax on dividends
  • No customs duty on office equipment

About The Author

John Muhaise-Bikalemesa (JMB), is the founder of Muhaise.com blog and bigdrumassociates.com company. Learn more about him here and connect with him on his social medias below

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