Tax in Mauritius

Tax in Mauritius for companies is based on a fiscal regime that was introduced in 1995 under the Income Tax Act, which is designed to encourage international business in Mauritius.  Taxation is...

Companies in Mauritius

Companies in Mauritius are called Global Business Companies but are classified as Category 1 and Category 2 companies based on the type of license that they hold.  Companies in Mauritius can be...

Mauritius Offshore Trust Formation

Mauritius Offshore Trust Formation: Settlor Mauritius offshore trust formation can be done by anyone who is legally able to settle a trust.  Settlors of offshore trusts in Mauritius are able to be...

Mauritius Trust

Mauritius trust is governed by the Trusts Act 2001. This act was passed to amend and consolidate legislation on trustees and trust services in Mauritius, along with other related matters. Mauritius trusts are used as asset protection vehicles and can be created on different grounds relating to personal, corporate or family interests and charitable purposes.

Mauritius Trusts Act is also a comprehensive piece of legislation that regulates both domestic and offshore trusts. Domestic trusts are created by nationals and local residents of Mauritius whereas offshore trusts are those Mauritius trusts that are settled by foreign nationals who do not reside in Mauritius. The property of a Mauritius offshore trust is situated outside Mauritius.

Quite a number of advantages flow from a second citizenship. Some of these include safety financially and physically and a great opportunities for families to establish a new or second home. Second citizenship programs without residency imposed on applicants are administered in St Kitts and Dominica. These programs are identified as either economic citizenship or citizenship-by-investment. To apply for second citizenship, contact us. The smart use of asset protection trusts, offshore companies like Mauritus and Belize company, and other international investment tools and can also lead to great low tax benefits.

A Mauritius trust is required to have at least four essential figures. These include a settlor, beneficiary, trustee and a protector or enforcer. The settlor of a Mauritius trust is the person (legal or natural) that creates the trust. There may be one or more settlors to a Mauritius trust. The beneficiary is the person (natural or legal) for whom or in whose benefit the Mauritius trust is settled.

Mauritius trusts also have trustees who are the persons that become legal owners of Mauritius trusts. Persons that serve as trustees must be licensed and include both corporate entities and natural persons. The trustee of a Mauritius trust is required to manage the trust according to the terms of the trust and in keeping with Mauritius trust legislation.

Three main types of trusts are created in Mauritius: charitable trusts, purpose trusts and spendthrift or protective trusts. Each of these trusts is created with specific objectives in mind; however they are structured the same, with minor distinctions in the legal requirements. For example, whereas a charitable Mauritius trust is only required to have a protector, a purpose Mauritius trust must have an enforcer in addition to an enforcer. The role of enforcer cannot be taken up by the trustee.

Mauritius offshore formation is administered through agents that are licensed as providers of trust services. Rules for Mauritius offshore trust formation require trustees to be either bodies corporate or persons that are qualified and authorized to provide Mauritius trust services.

Mauritius offshore trust formation rules state that there must be no more than four trustees per trust at any one time. In trust formation, it is recommended that the settlor hands over a memoranda or letter of wishes to the trustee to expressly state and clarify the objectives and terms of the trust. The Trusts Act also allows the beneficiary to present a letter of wishes to the trustee upon offshore trust formation or thereafter.

Mauritius trusts are ideal asset protection entities and if used with a Mauritius offshore company is even more effective. Mauritius companies are classified as Category 1 Global Business (GBC1) and Category 2 Global Business Company (GBC2). For reliable asset protection, the shares of a GBC2, for example, can be transferred to a Mauritius trust. This kind of asset protection strategy is two and allows the business owner(s) to be protected by limited liability of the Mauritius company, protect assets through ownership by the Mauritius company and further shield the ownership of those assets by transferring them to a Mauritius.

Taxation in Mauritius is relatively low in comparison to many other countries. From July 1, 1998 a 15% flat tax was introduced for all category 1 companies in Mauritius in order to make it easier for local companies in Mauritius to compete with other foreign and offshore companies. This created a level playing field for Mauritius companies and invigorated the domestic business climate. Between July 1998 and June 30, 2002, Mauritius companies that were formed before July 1998 were given the opportunity to choose being taxed from a range of 0% to 35%. Mauritius companies that did not make a decision by the end of June 30, 2002 became subject to the standard 15% tax rate in July of 2002.

Although category 2 Mauritius companies are tax exempt, they are unable to benefit from anti-double tax treaties that exist between Mauritius and other countries. Taxation in Mauritius is relatively favorable to category1companies in Mauritius that are classified as resident Société. But income tax in Mauritius is imposed on all associates of the Société are subject to income tax on share of income for every Société to which they are associated.

This said, Mauritius is an attractive location for going offshore. Mauritius trusts are thoroughly regulated and along with offshore insurance Mauritius companies and other entities offer great opportunities for investing offshore, lowering tax expenditure and protecting assets.

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