Finance

Why You Need to Go to Mauritius Now, in 10 Incredible Photos by Bloomberg   Mauritius is an incredible destination to visit. Bloomberg released 10 incredible photos to emphasize why Mauritius should be your first choice for your next holiday destination.  Mauritius has something to offer to everyone.  From beautiful beaches for relaxing to hiking and kite surfing for the more adventurous.  Not to mention shopping in Port Louis or …

Indian Government declares 40 per cent tax on offshore companies with Indian place of effective management   A recent article published on the MNE Tax website, written by Mohit Agarwal, Tax Director at PwC India, reports on the recent guidance reported by the Indian government relating to computation of tax liability, applicable tax rates and related compliance once a foreign company’s place of effective management (PoEM) – the company’s tax residence will …

Administrator of a fan page on a social network is a ‘controller’ under the EU Data Protection Directive   The Chambers News, Legal News section reported on the administrator of a fan page on a social network is a ‘controller’ under the EU Data Protection Directive on the 10th of July 2018.  The article reports on a company registered under German laws that set up a fan page on Facebook …

SAC offers compelling new route for fund managers in Bermuda   Hedgeweek reported on Incu Global that operates a Segregated Account Company (SAC), an umbrella structure in Bermuda that now offers fund managers a new cost-effective route to launching a fund.  This new model is based on cell structures.  Each manager has his own cell structure – effectively a sub-fund – whose assets and liabilities are ring fenced from all …

Mauritius ranked 16th on EIU Democracy Index 2017, gaining 2 positions compared to 2016   According to the EIU Democracy Index 2017 report is the Economist Intelligence Unit (The EIU) the research and analysis division of The Economist Group, the sister company to The Economist newspaper. The Economist Intelligence Unit’s Democracy Index provides a snapshot of the state of democracy worldwide for 165 independent states and two territories. This covers almost …

The Economic Development Board (EDB) has merged the Board of Investment, Enterprise Mauritius and the Financial Services Promotion Agency.   The creation of the Economic Development Board (EDB) which operates under the aegis of the Prime Minister’s Office, was announced in the Budget Speech 2017/2018.  According to the EDB website, the overarching objective is to ensure greater coherence and effectiveness in implementing policies and actions, and to draw the vision …

New Regulations regarding the National Minimum Wage in Mauritius   The Government of Mauritius released a Government Notice No.1 of 2018 regarding the National Wage Consultative Council Act 2016.  The regulations made by the Minister under sections 8 and 23 of the National Wage Consultative Council Act 2017, the National Minimum Wage is now law in Mauritius. Below is a summary for the new minimum wage in Mauritius. The National …

The FSC recently released communication of the appointment of Dr. Renganaden Padayachy as Chairperson of the Financial Services Commission.  This appointment follows the resignation of Mr. Dev Manraj who recently joined as a Member of the Board of the Economic Development Board.   The Prime Minister appointed Dr Renganaden Padayachy with effect from 16 January 2018.  Dr. Padayachy is currently the First Deputy Governor of the Bank of Mauritius. He …

Mauritius is not included on the EU list of non-cooperative jurisdictions for tax purposes   A recent article on the Global Finance Mauritius website give a detailed overview of the recent list of non-cooperative jurisdictions for tax purposes (so-called blacklist) and the new EU ‘grey list’.  On 5 December 2017, the ECOFIN Council, composed of EU Economic and Finance Ministers, adopted a new list of non-cooperative jurisdictions for tax purposes, …

The Independent has recently published an article about a blacklist of 17 ‘tax haven’ countries that were created by the European Union.   The list includes: American Samoa, Bahrain, Barbados, Grenada, Guam, South Korea, Macau, Marshall Islands, Mongolia, Namibia, Palau, Panama, Saint Lucia, Samoa, Trinidad and Tobago, Tunisia and the United Arab Emirates.  It is said that these countries are not doing enough to combat offshore avoidance schemes.   Interestingly, the …

The Prime Minister of Mauritius, Pravind Kumar Jaugnauth made a statement regarding the unfounded allegations against Mauritius jurisdiction by the International Consortium of Investigative Journalists (ICIJ) on information they have leaked in the so-called “Paradise Papers”.   Prime Minister Pravind Kumar Jaugnauth said the following in his statement:   “We find it extremely important that Mauritius, as an international financial centre of repute, should set the record straight.   Mauritius …

World Bank’s Doing Business Report 2018 The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority …

Mauritius has set its sights on becoming Africa’s Singapore.  Mauritius has set itself apart as the financial hub of Africa and now aims to transform its international financial centre into a trade and investment hub for global investors looking for a base in Africa, just as Singapore guided investors when China’s economy opened up.   According to the prime minister of Mauritius, Pravind Jugnauth, Mauritius aspires to be “the bridge …

Depositary Receipts (DRs) of the African Export-Import Bank (Afreximbank) has officially started trading on Stock Exchange in Mauritius on 5 October 2017.  Their first day on the stock exchange topped the list of issuers in terms of capital raised prior to a listing.   The initial listing price was $4.30 per DR.  5000 DRs were listed as required by regulations.  The DRs closed up at $4.40 per DR at the …

The Financial Services Commission (FSC) of Mauritius recently released communication on the high level delegation led by Mr. Dev Manraj, Financial Secretary who is currently in the United Kingdom and met with representatives of the Foreign and Commonwealth Office (FCO) on 5 October 2017.  Mr Tim Morris, Senior Trade Advisor for Africa at the Department for International Trade and his team, held working sessions with the FCO regarding the Africa …

Mauritius occupies the leading position in the Sub-Saharan African region for the fourth consecutive year according to the Global Competitiveness Report 2017/2018 published by the World Economic Forum on 27th September 2017.   The Global Competitiveness Index 2017/2018 covers 137 economies.  It measures national competitiveness which is defined as a set of institutions, policies and factors that determine the level of productivity.  The Global Competitiveness Index measures the factors that …

The OECD’s Global Forum announced on the 21st of August 2017,  that Mauritius received a rating of “Compliant” under a new and enhanced peer review process aimed at assessing compliance with international standards for the exchange of information on request between tax authorities.   Global Forum released the second round of compliance ratings on tax transparency for 10 jurisdictions.  The Global Forum is the continuation of a forum which was …

Public Register to record people who own UK Property   A recent article by Stephanie Henwood-Darts in the SANNE Connect Bulletin provides insight to the UK government’s decision to enhance the transparency of beneficial ownership for foreign entities that are active in the UK, in particular those purchasing property or land.   In April 2016, an establishment of the UK register of People with Significant Control (the ‘PSC Register’) was …

Mauritius Africa’s Financial Hub also referred to as the ‘Singapore of Africa’   Fin24.com recently published an interview with Coreen van der Merwe, managing director of Sovereign Trust in South Africa.  The article is very interesting and highlight the reasons why Mauritius is seen as the ‘Singapore of Africa’. Following is a few interesting points that this article underlines.   Firstly, Mauritius has an attractive jurisdiction to do business.  They …

Over 1800 relationships is now in place to automatically exchange CRS information between tax authorities   The Common Reporting Standard (CRS) is an information standard for the automatic exchange of tax and financial information on a global level, which the Organisation for Economic Co-operation and Development (OECD) developed in 2014.  Its purpose is to combat tax evasion.  Since 2014, many countries around the world has shown political commitment to fight …

On 5 July 2017, Mahess Rawoteea of the Ministry of Finance and Economic Development of Mauritius signed the multilateral BEPS convenstion at the OECD Headquarters in Paris.   The OECD defines the  MLI as a legal instrument designed to prevent base erosion and profit shifting (BEPS) by multinational enterprises. BEPS refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or …

The Global Peace Index 2017 ranks Mauritius as the most peaceful and safest country in sub-Saharan Africa. The study carried out by the Australian Institute for Economy and Peace ranks Mauritius as the 22nd most peaceful country in the world.   This is the eleventh edition of the Global Peace Index (GPI), which ranks 163 independent states and territories according to their level of peacefulness.  The GPI covers 99.7 per …

The Global Cybersecurity Index 2017 was recently released.  Brahima Sanou, Director of Telecommunication Development Bureau said that the global community is increasingly embracing ICTs as key enabler for social and economic development. Governments across the world recognize that digital transformation has the power to further the prosperity and wellbeing of their citizens. In supporting this transformation, they also recognize that cybersecurity must be an integral and indivisible part of technological …

STEP Journal reported in October 2014 that a wife failed to get tiger charity included in divorce settlement.  The article read “A charitable trust set up by a husband and wife to protect rare Chinese tigers was never intended to provide a future income for the couple and should not be considered in the wife’s financial remedy application, the England and Wales High Court has ruled”.   According to the …

Expatriation: Mauritius ranked 7th most fiscally attractive country by Bradley Hackford   A recent article published on Luxury Mauritius, highlighted Mauritius as one of the most fiscally attractive countries in the world according to Bradley Hackford.  The article discuss some factors that makes Mauritius one of the Top 10 most appealing countries in terms of expatriation.   An attractive tax system, an exclusive art of living that attracts the millionaires …

“The Indian Ocean island nation is making a concerted effort to use its well-established legal and business systems and ties to Europe to market itself as an international financial centre. “   The above statement is according to Mr Andrew Mizner who wrote a recent Newsletter on the ALB (African Law & Business) website, regarding the most recent Mauritius IFC Business Meet in London.  The speaker was His Excellency Mr …

Mauritius to become southern hemisphere’s leading international financial centre A recent article in MoneyMarketing published an interview with  Nigel Green, founder and chief executive of deVere Group.  In the interview Mr Green affirms that Mauritius is destined to become the southern hemisphere’s leading international financial centre within the next decade.   Following this article, it is clear that the comprehensive research into the world’s most established international services of Mr Green’s …

Mauritius as an International Financial Centre FDI Spotlight recently posted a very interesting article discussing the plans to establish  Mauritius as an International Financial Centre.  This article highlight that Mauritius was once called the “star and key of the Indian Ocean” due to its strategic position on the maritime spice route.   Mauritius is located between Asia and Africa and according to the Prime Minister, Pravind Jugnauth, Mauritius has become …

THE OVERSEAS FAMILY OFFICE SCHEME   The Scheme The Overseas Family Office Scheme caters for the domiciliation of high net worth single family and multifamily offices, characterised by two licences under the scheme respectively. The scheme is regulated by the Financial Services Commission and the licences are governed by the Financial Services Act and consequential secondary rules.   Overview Mauritius is already well known as a destination for trusts and …

2017 Index of Economic Freedom The 2017 Index of Economic Freedom, 23rd edition was recently published.  It shows that there was overall global progress in advancing economic freedom reflected in rising scores of dozens of countries.  According to the IEF 2017, countries boasting higher scores of economic freedom generate higher per capita income and their populations also displayed higher level of general well-being compared to the lower-scoring countries.   According …

Attributes of Mauritius that shows the benefits of doing business in Mauritius   There are many benefits of doing business in Mauritius.  Mauritius is recognised as a unique investment destination for investors.  Investors has the benefits of no capital gains tax, no with holding tax, no capital duty on issued capital, confidentiality of company information, exchange liberalisation and free repatriation of profits and capital.  These attributes  qualify Mauritius as a …

Recently Mauritius joined other countries like the UK, Singapore and Australia with the concept of Regulatory Sandbox Licence (RSL).  The Government launched the RSL on 20 October 2016.  This is as a result of the Government’s vision to promote creativity and innovations through the application of technology.   BlockChain, Digital Currency, Online Health care and Fintech are some of the innovation-driven activities that can be tapped into.  An application for …

Joint statement by the FSC and The FSPA   A recent joint statement by the FSC and The FSPA discuss misconceptions and misleading informations that was published by Oxfam policy paper on “Tax Battles”  on the 12th of December 2016.   Extracts from the official joint statement by the FSC and the FSPA on 16 December 2016   As a jurisdiction of substance, the Mauritius International Financial Centre (Mauritius IFC) has been instrumental …

Economic and Financial Impact and Policy Responses   The economic and financial impact of Brexit on Mauritius was discuss in detail recently by Dr Rama Sithanen on lexpress.mu.  According to Dr Sithanen, it is evident that Brexit has created a storm in terms of both economical and financial impact and this consequences on policy responses.   He further discuss the Brexit response under 4 headings. The direct and indirect transmission …

Online Submissions Platform   The FSC Mauritius has launched the Online Submission Platform (OSP) on 1 December 2016.  The OSP was officially launched at the FSC House by the Honourable Roshi Bhadain GCSK, the Minister of Financial Services, Good Governance and Institutional Reforms in the presence of Board Members of the FSC Mauritius; Mr. P.K. Kuriachen, the Acting Chief Executive; representatives of local agencies and of the industry.   The …

Previously, the UK government announced reforms to taxation of resident non-domiciliaries goes ahead in April 2017.  The HT Autumn Statement confirmed this.   The latest Newsletter from STEP summarised the recent announcement of the UK government to tax resident non-domiciliaries.   The statement made no room for further transitional concessions to help non-doms arrange their affairs in time.  This is despite appeals from professional advisors for relief from capital gains tax or …

Investing in property in Mauritius   Investing in property in Mauritius is a very attractive option for investors.  Personal security, residency, tax efficiency and cost of ownership are some of the reasons why.  A recent article in the The Sunday Times (18 November, 2016) highlighted that Mauritius is not just a small but prosperous island but it is considered one of the last true safe havens for second-home owners.   The …

GBC2 may now invest in any securities exchange listed   GBC2s may now invest in any securities listed on a securities exchange licensed under the Securities Act.  This is due to an amendment in the enactment of The Finance (Miscellaneous Provisions) Act 2016, Section 73 (2) of the FSA.  It was made public in the recent FSC Mauritius Circular Letter (CL181016).   First of all, this amendment impacts business relationships …

  The MO Ibrahim Index 2016 – Mauritius first in Africa   The Mo Ibrahim Index of African Governance (IIAG) 2016 entitled: A decade of African Governance 2006-2015, was released on 3rd October 2016 in London.  Mauritius remains the top ranking country in overall governance in Africa for the tenth consecutive year.   Mo Ibrahim Index provides a comprehensive assessment of governance performance 54 African countries.   It is therefore …

Mauritius most competitive economy   Mauritius sub Saharan Africa’s most competitive economy according to the latest publication of the Global Competitiveness Index 2016 – 2017 of the World Economic Forum.   Mauritius was ranked number 45 out of 138 countries moving up a step from last year’s report.  This shows that Mauritius continues to consolidate its lead in the Sub Saharan region for the fourth consecutive year.   The Global …

Following the gazetting of the Finance (Miscellaneous Provisions) Act 2016 on 7 September 2016, the following amendments have been brought:   Financial Services Act Section 73 In line with the enhancement of substance requirements, Section 73(2) of the FSA has been amended in order to allow GBC2s to invest in listed securities. In that respect this is expected to provide local companies with the funding requirements to expand their business …

A recent article on Yes Africa, Mauritius rides wave of Asian Investment in Africa, stating that the Bank of China secured a Mauritian banking license in March.  This was hailed as proof of the island’s potential as a staging post for Africa.   Antony Withers, chief executive of the Mauritius Commercial Bank, says the move was the most tangible sign yet of Mauritius’s ability to become a centre for Chinese investment. …

Bank of China opens an office in Mauritius   News from the Board of Investment – Mauritius has indicated that The Bank of China is the first Chinese bank licensed to conduct banking operations in Mauritius. Its official opening ceremony was held on the 27 September 2016 at Balaclava and was attended by Mr Wang Xiquan, Chairman of Bank China, Mr Li Li, Ambassador of China in Mauritius, Mr Pravind …

A recent article on Eye Witness News underlines Mauritius as the New African Hub.  According to the writer, for decades, Mauritius has built long-standing relationships with key African and international bodies, including the Southern African Development Community, the World Trade Organisation and the Commonwealth of Nations. The country has always been viewed as particularly stable, having adopted a parliamentary democracy and an independent judiciary. Mauritius has multiple bilateral trade agreements across Africa. …

Mauritius has demonstrated to be the ideal destination for your African investment.  Mauritius, a volcanic island nation in the Indian Ocean, is best known for its beaches, lagoons and reefs. However, the island nation in the Indian Ocean, about 2,000 km’s off the southeast coast of the African continent, has emerged as an International Financial Centre of choice due to its robust regulatory and qualified labour force. The people of …

Address from the Acting Chief Executive of the FSC Mauritius:  Credit Ratings in Emerging Markets   The Acting Chief Executive of the FSC Mauritius, Mr P.K. Kuriachen, was invited to make an address during a Forum on Credit Ratings in Emerging Markets organised by the Insurance Institute of Mauritius at Labourdonnais Waterfront Hotel on 15 July 2016.   Mr Kuriachen highlighted that the presence of local rating agencies in Mauritius …

The Financial Services Commission, Mauritius (“FSC Mauritius”) is hosting a Familiarisation and Training Programme from 11 to 15 July 2016 at the FSC House for members of Committee of Insurance, Securities and Non-banking Financial Authorities (CISNA) of the Southern African Development Community (SADC). Thirty four delegates from nine SADC Member States, including Mauritius and from Ghana, are attending this Familiarisation and Training Programme.   CISNA was established in 1998 …

Alternate Directorship The FSC Mauritius has been receiving copies of statutory filings for the appointment of alternate directors of licensees whereby the prior approval of the Commission has not been sought for such appointment.   The FSC Mauritius wishes to highlight that as per the Financial Services Act 2007 (‘FSA 07’), a director is included in the definition of ‘Officer’ and as required under Section 24 (1) of the FSA …

Termination of the Investment Adviser (Restricted) Licence of Fairway Advisory Services Limited The FSC Mauritius issued a Notice on 08 July 2016 to inform the public that Fairway Advisory Services Limited has surrendered its Investment Adviser (Restricted) Licence in accordance with Section 28 (5) of the Financial Services Act 2007 (the “Act”). Pursuant to Section 28 (9) of the Act, the public was notified that the Investment Adviser (Restricted) Licence …

CPMI-IOSCO release guidance on cyber resilience for financial market infrastructures   The Committee on Payments and Market Infrastructures (CPMI) Guidance on cyber resilience for financial market infrastructures and the Board of the IOSCO published the final report on Guidance on cyber resilience for financial market infrastructures (“Cyber Guidance”). This Cyber Guidance is the first internationally agreed guidance on cyber security for the financial industry. Over the years, it has …