The Financial Services Commission (FSC) Mauritius published a Circular Letter on the 12th of October 2018 regarding substance requirements for Global Business Corporations.
The Circular Letter follows consultation with stakeholders to provide clarifications to the new enhanced substance requirements.
A holder of a Global Business Licence (‘GBC”) should carry out its core income generating activities in, or from, Mauritius by employing (directly or indirectly) a reasonable number of suitably qualified persons to carry out the core activities and having a minimum level of expenditure that is proportionate to its level of activities. The FSC will consider the nature and level of core income generating activities conducted by the GBC. Suitably qualified employees should be employed by the GBC to conduct the core income generating activities to meet the requirements set by the FSC. The FSC has set indicative guidelines to determine the “reasonable number of suitably qualified persons” and “minimum expenditure which is proportionate to its level of activities”. This will be assessed on a case by case basis. To qualify for tax holidays under the Second Schedule for the Income Tax Act, the categories of licencees should have a physical office as well as a minimum number of employees resident in Mauritius and incur a minimum amount of annual operating expenditure in Mauritius or have assets under their management.
The above-mentioned new enhanced substance requirements supersede the existing enhanced substance requirements provided in Chapter 4 of the FSC Guide to Global Business. It is important to note that this Circular Letter does not affect the obligation of any GBC to comply with the relevant Acts, FSC Rules, Codes and any guidelines issued by the FSC or any other enactment. Licensees are reminded that they should ensure compliance at all times with all legal or regulatory requirements.
The requirements provided under paragraph 2 of this Circular Letter shall be effective as from 1st January 2019.
Source: Financial Services Commission
All entities providing non-banking financial services in Mauritius must be licensed/ authorised /registered or approved by the Financial Services Commission, Mauritius (the …
OECD addresses the misuse of residence/citizenship by investment schemes The OECD has recently published important information regarding the steps taken to …
Mauritius Africa’s Financial Hub also referred to as the ‘Singapore of Africa’ Fin24.com recently published an interview with Coreen van der …