Mauritius has quietly gone about building its reputation as a safe, trusted and secured jurisdiction for financial services.
In order to enhance the growth of the Mauritian economy and attract investors, emphasis has been placed on its competitive advantages which include a low and simple fiscal regime. This has now been enhanced with the reintroduction of the concept of directed tax holidays and improved investment tax credits, from which certain categories of business operating in the financial services sector will benefit.
Emphasis has also been placed on modernising business, improving local infrastructure, encouraging job creation, and reforming and creating a fusion of some of the government institutions in order to make the system more efficient and to facilitate business in general. We spell out below the sectors in which changes have been brought in.
WEALTH MANAGEMENT
Budget Provision:
- Companies holding an ‘Overseas Family Corporation’ Licence delivered by the FSC will be provided with a 5-year tax holiday
- Foreign Ultra High Net Worth Individuals investing a minimum of USD 25 million in
Mauritius will be provided with a 5-year tax holiday
Through the introduction of the Overseas Family Corporations (OFCs) Licence, international High Net Worth families will be able to manage their wealth from Mauritius by setting up their family offices in Mauritius.
HEADQUATERING AND TREASURY MANAGEMENT
Budget Measures:
- Companies holding a ‘Global Headquarters Administration Licence’ issued by the FSC will be granted an 8-year tax holiday
- Companies holding a ‘Treasury Management Centre License’ delivered by the FSC will be provided with a 5-year tax holiday
- The Global Headquarters Administration Licence and the Treasury Management Centre Licence enhance Mauritius’ position as a regional financial and business hub.
ASSETS & FUNDS MANAGEMENT
Budget Measure:
- Asset and Fund Managers managing a minimum asset base of USD 100 million will be provided with a 5-year personal income tax holiday
- This goes further to provide that the individual actually managing the assets will also get a 5-year personal tax exemption
This measure will further incentivise mid to big size fund and asset managers to establish their management offices in Mauritius, as well as create opportunities for regional portfolios to be managed from Mauritius.
INVESTMENT BANKING
Budget Measure:
- Companies with an ‘Investment Banking and Corporate Advisory License’ will be provided with a 5-year tax holiday
The FSC will henceforth issue the Investment Banking and Corporate Advisory License, which will be an umbrella license encompassing the activities of an investment dealer, investment adviser, investment adviser in corporate finance, credit finance, asset management and non-custodian.
INTERNATIONAL LAW FIRMS
Budget Measure:
- Introduction of a Global Legal Advisory Services License, and an LLP structure
Top international law firms will now be able to set up their regional offices and operations in Mauritius to provide legal advisory services on complex corporate and financial transactions, as well as arbitration and mediation services. LLP structures, being the preferred structure for services firms like law firms, will also be introduced in Mauritius. The law firms will also be provided with a 5-year tax holiday.