Tax Holiday Global Business Companies – 2016/2017

Income Tax Act 2016/2017

Tax Holiday for Global Business Companies were announced in the budget speech 2016/2017.  The speech included changes proposed to the Income Tax Act that would allow more fiscal flexibility to investors operating in the finance sector.  The budget speech 2016/2017 included the following:

 

Tax holiday for business income

• The 8-year tax holiday in respect of business income is being extended to new enterprises set up by individuals or co-operative societies qualifying under the scheme and registered with SMEDA.

Global Business Companies

•  Corporate tax holiday of 8 years to a Global Headquarters Administration company licensed by the Financial Services Commission (FSC) and meeting conditions of minimum employment and substance.
•  Corporate tax holiday of 5 years to a company providing Treasury Management Centre services licensed by FSC and meeting conditions of minimum employment and substance.

 

Personal Income Tax Holiday

•  Personal income tax holiday of 5 years to an Asset and Fund Manager licensed by the FSC and managing a minimum asset base of USD 100 million.
•  Personal and corporate tax holiday of 5 years to Foreign Ultra High Net Worth Individuals’ investing a minimum of USD 25 million in Mauritius.

 

Corporate Tax Holiday

•  Corporate tax holiday of 5 years to law firms which set up their regional offices in Mauritius to  provide legal advisory and international arbitration services to global business clients.
•  Corporate tax holiday of 5 years for investment banks issued with an ‘Investment Banking and Corporate Advisory Licence’ and regulated by the FSC.
•  Corporate tax holiday of 5 years to Overseas Family Corporations licensed by the FSC.

 

These changes may have an impact on Global Business Companies.  Contact us for more information regarding your GBL, we would gladly advise and assist you.

 

Source:  Anex to the Budget Sheet 2016/2017