Business updates

The OECD, in its latest report released on the 15^th of November 2018, shows that international efforts to curb harmful tax practices and prevent misuse of preferential tax regimes are having a tangible impact worldwide.

The report shows that Mauritius meets all the international requirements of the BEPS Action 5 and therefore does not have any harmful practices in its tax regimes. The OECD Forum on Harmful Tax Practices had reviewed 10 tax regimes in Mauritius and all the regimes have been identified as unharmful, as follows:-

(a) Category 1 and Category 2 Global Business companies;

(b) Banks, as regard their foreign source income also known as segment B income;

(c) Captive Insurance;

(d) Partial Exemption System;

(e) The newly introduced tax regime for banks;

(f) Freeport;

(g) Global Headquarters Administration;

(h) Global Treasury Activities;

(i) Investment Banking; and

(j) Shipping.

The latest OECD update thus gives assurance to the sector and operators that the concerted efforts between the public and private sector for a review of the global business regime has been fruitful and that Mauritius can be considered as a fully compliant jurisdiction to the OECD initiatives to enhance best practices in the industry.

The full report can be accessed here.