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Mauritius is a well regulated International Financial Centre and all Trust Companies and Corporate Service Providers and fund administrators are licensed and regulated by the Mauritius Financial Services Commission. Banks are licensed and regulated by the Bank of Mauritius and most offshore banks are reputable international banks also operating in other major offshore jurisdictions.
There are two types of global business companies that may be set up in Mauritius, Category 1 Global Business Company (GBC1) and Category 2 Global Business Company (GBC2). Both type of companies are set up under the Companies Act 2001 and licensed under the Financial Services Act 2007. A GBC1 can engage in any financial business activities such as assets management, credit finance, custodian services (non CIS), distribution of financial products, factoring, leasing, occupational pension scheme, pension fund administrators, pension scheme management, retirement benefits scheme, superannuation funds, registrar and transfer agent, treasury management and such other financial business activity as may be specified in Financial Services Commission (FSC) Rules.
Incentives for Global Businesses
Mauritian entities carrying on global business enjoy a large number of fiscal and other incentives; the more important ones are summarized below.
- Global Business Category 1 companies are liable to pay tax at 15% on net operating income with credit for actual foreign tax paid or if lower deemed tax paid on foreign source income, which reduces the effective tax rate to a maximum of 3%.
- Trusts are at par with other corporations and thus benefit from the Mauritian double tax treaty network.
- Trusts may elect for tax exemption.
- Global Business Category 2 companies are tax exempt.
- There are no other "hidden costs" such as stamp duties or levies.
- No withholding taxes are levied on dividends, interests and royalties.
- Capital gains on disposal of securities and other movable property are exempted from taxation.
- Inheritance of shares is not subject to estate duty or cumbersome formalities.
- Expatriate employees pay income tax at a maximum of 15%.
- Global business companies can secure occupation and residence permits for employees earning USD1000 monthly.
- No exchange control.
Cumulative number of Global Business Companies (2006-2010)
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