The Finance Act 2025, officially gazetted on 9 August 2025, introduces a series of significant tax reforms aimed at enhancing Mauritius’ fiscal framework and aligning with global standards.

Key Tax Measures

• Qualified Domestic Minimum Top-Up Tax (QDMTT): Effective for financial years ending after 31 December 2024, this tax targets large multinational groups with annual revenues exceeding EUR 750 million. It ensures a minimum level of taxation in Mauritius, in line with OECD guidelines.
• Fair Share Contribution (FSC): Applicable from 1 July 2025 to 30 June 2028:
  • Individuals: Only income exceeding MUR 12 million will be taxed under the FSC.
  • Companies: The FSC applies if chargeable income exceeds MUR 24 million, and once this threshold is crossed, the entire income becomes taxable under the FSC.
• Alternative Minimum Tax (AMT): A 10% tax on adjusted book profits, applicable to specific sectors such as hospitality, regardless of accumulated tax losses.
• VAT on Digital Services: Starting 1 January 2026, foreign suppliers of digital services to Mauritian consumers must register for VAT in Mauritius. This aims to level the playing field between local and international providers.
• Tax Arrears Settlement Scheme (TASS): Extended until 30 November 2025, allowing full waiver of penalties and interest for qualifying disclosures.
• Transfer Pricing Documentation: Mandatory documentation requirements will be introduced via regulations to ensure compliance with international standards.
• Property Tax Increase: Effective 1 July 2026, the rate on transactions under EDB-approved property schemes will rise from 5% to 10%.

Updates Compared to the Finance Bill 2025

• Smart City Incentives: Companies with a letter of comfort issued before 5 June 2025 will retain existing tax benefits. For letters issued after this date, incentives are limited to infrastructure-related projects.
• FSC Computation for Individuals: Dividends from Trusts and Foundations are now excluded from FSC calculations, regardless of GBL status.
• Bank Tax Cap: The 35% tax rate cap for banks will apply only to domestic transactions, excluding dealings with global business entities.
• Occupational Permit Salary Threshold: The minimum monthly salary requirement has been revised to MUR 30,000, down from the proposed MUR 50,000.
• QDMTT Clarifications: The Act confirms that special credits and reliefs are not limited to entities subject to QDMTT. Regulations are expected to detail the computation methods, eligible entities, and administrative procedures.

How can MITCO assist?

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