Key Tax Measures
On tax, the Budget reveals a clear hierarchy of intent: reward investment that builds productive capacity, ask more of consumption and hold companies and individuals to a tighter standard. The 15% Investment Tax Credit for manufacturers runs to 30 June 2029, the hotel annual allowance falls from 30% to 15%, the Corporate Climate Responsibility Levy is hardened with no credit offsets and quarterly APS payment, and a 35% top personal band quietly retires the Fair Share Contribution.
Corporate Tax
In brief:
- Fine tuning of the QDMTT legislation and a materially heavier CCR Levy burden driven by quarterly payments and eliminated credit offsets.
- The measures reflect a rollback of recent reforms to CSR alongside a continued effort to rationalise incentives and tighten tax benefits.
- A shift to higher progressivity, replacing the Fair Share Contribution with a 35% top tax band on high-income earners
- Qualified Domestic Minimum Top Up Tax (QDMTT)
- Corporate Climate Responsibility (CCR) Levy
- Taxation of ICT service providers
- Investment Tax Credit (ITC)
- Export exclusion
- 80% exemption regime
- Annual allowance on hotels
- Corporate Social Responsibility (CSR)
- Global Business Entity
- Income tax holidays
- Removal of allowable deductions
Qualified Domestic Minimum Top Up Tax (QDMTT)
The definition of excluded persons will be clarified to exclude an investment fund and a real estate investment vehicle where they are an Ultimate Parent Entity (UPE). The change is effective as from 01 July 2025.
Consolidated adjustments relating to intercompany transactions will be allowed in the computation of net income or loss.
The fiscal year of a Multinational Enterprise (MNE) will be clarified to be the accounting period used by its UPE to prepare its consolidated financial statements, where the latter have been prepared according to acceptable accounting standards.
The submission date for the filing of the QDMTT return will be not later than 15 months from the end of the month in which the fiscal year ends.
A QDMTT return is allowed to be amended within a period of 3 years from submission.
The penalty for non-payment of QDMTT will be reduced from 5% to 2.5%.
Corporate Climate Responsibility (CCR) Levy
Unused tax credits, including foreign tax credits, will no longer be available for offset against the CCR Levy.
The CCR Levy will be payable under quarterly Advance Payment System (APS) statements in a phased manner:
25% in the financial year 2026-2027;
50% in the financial year 2027-2028;
75% in the financial year 2028-2029;
100% in the financial year 2029-2030.
Taxation of ICT service providers
- Non-resident companies engaged in the supply of software, software licences, software applications and software maintenance services, remote maintenance of programmes and ICT equipment will be subject to income tax.
Investment Tax Credit (ITC)
The ITC of 15% over 3 years available to manufacturing companies on the acquisition of qualifying expenditure will be extended to 30 June 2029.
Unrelieved ITC may be carried forward for a period of 10 years.
Export exclusion
The reduced corporate income tax rate of 3% will no longer be available to export of live animals.
80% exemption regime
The definition of core income generating activities for an Investment Adviser or Asset Manager will include the management of non-securities instruments (such as loans receivable, mortgage-backed exposures and invoice financing portfolios).
Annual allowance on hotels
The rate of annual allowance on capital expenditure incurred on hotels will be reduced from 30% to 15%.
Corporate Social Responsibility (CSR)
- 75%, instead of 50%, of the CSR Fund will need to be remitted to the MRA.
Global Business Entity
The definition of Global Business Entity will be clarified to exclude:
a trust where the settlor or beneficiaries are residents;
a foundation where the founder or beneficiaries are residents.
Income tax holidays
The 10-year tax holiday to captive insurance companies will be extended for another 5-year period, provided the relevant licence was issued prior to 19 June 2026.
The 8-year income tax holiday granted to holders of an Investment Certificate issued by the Economic Development Board will, going forward, be available as from the date of start of operations (as opposed to the date of incorporation).
Removal of allowable deductions
As from 1 July 2026, the following deductions will be removed:
150% deduction on expenditure incurred by hotels on cleaning, renovation and embellishment works in the public realm;
200% deduction on expenditure incurred by a higher education institution on joint tertiary education contracts with African universities.
Personal Tax
In brief:
- A shift to higher progressivity, replacingthe Fair Share Contribution with a 35% top tax band on high-income earners
- Introduction of a new high-income band
- Income Tax Exemption
- Increase in exemption threshold for Lump Sum
- Increase in Income Support
- Golden Visa Scheme
Introduction of a new high-income band
- A new high-income band of 35% will replace the Fair Share Contribution for individuals.
Income Tax Exemption
- Income tax exemption of 4 years will be granted to a qualifying expatriate employee of a company engaged in the manufacturing of solar photovoltaic systems.
Increase in exemption threshold for Lump Sum
- The exemption threshold on lump sum received as pension, retiring allowance or severance allowance will be raised from Rs3m to Rs3.5m.
Increase in Income Support
- Effective 01 January 2026, the income support payable to persons having reached 60 years but not eligible for the basic retirement pension will be increased from Rs10,000 to Rs10,370.
Golden Visa Scheme
A holder of a Golden Visa Scheme will:
be taxed on income derived from foreign employment only where such income is remitted to Mauritius;
not be deemed to have remitted income to Mauritius where expenditure is incurred locally through the use of a foreign credit or debit card; and
not be taxed on funds deposited into a bank account in Mauritius, where a declaration is provided that applicable taxes have already been paid abroad.
Value Added Tax:
In brief:
- VAT measures roll outtargeted changes byintroducing new exemptions
- A clearer, streamlined VAT framework for digital services - removing unnecessary compliance burdens while firmly defining when and how digital services are taxed.
- Fair Share Contribution for companies
- Exempt supplies
- Exempt bodies or persons
- Extension of zero-rated items
- VAT on digital and electronic services
Fair Share Contribution for companies
The requirement for a company to have supplies exceeding Rs24m or registered for VAT will no longer apply for the purpose of determining liability to the Fair Share Contribution.
Exempt supplies
The supply of services made by a holder of a management licence issued by the FSC to the following entities will be VAT exempt instead of zero-rated:
a Global Business Licence (GBL)
trusts whose settlor and the majority of the beneficiaries are non-residents.
foundations whose founder and the majority of the beneficiaries are non-residents.
VAT exemption extended to:
Electronic books.
Entrance fees to a sport event of any sport discipline under the responsibility of a National Sports Federation.
Exempt bodies or persons
An NGO or Non-Profit Organisation receiving funding from the National Social Inclusion Foundation will be exempt from VAT on goods received as donations from abroad and which are related to their normal activities.
VAT exemption will be granted on goods related to sports activities received as donation from abroad by a National Sports Federation.
Qualifying events eligible for VAT exemption on accommodation will be extended to certain international sports events and international television and cinema awards events.
Extension of zero-rated items
Zero-rate VAT extended to:
Payment services provided to a GBL by a holder of a payment service provider licence issued by the BOM.
Imported common salt.
Postal services.
VAT on digital and electronic services
- A foreign supplier of digital or electronic services will not be required to:
- register for VAT purposes if he makes taxable supplies exclusively to a VAT registered person. In such a case, the VAT reverse charge mechanism will apply
- appoint a tax representative for the submission of return and remittance of VAT
- compulsorily register for VAT purposes in case his annual turnover of taxable supplies is less than Rs3m per annum.
- provide details of the person to whom taxable supplies are made in Mauritius that would not be in conformity with the confidentiality requirements in his own jurisdictions. Online marketplaces and digital platforms will be in scope of digital and electronic services.
Property: duties and schemes:
In brief:
- Lighter where it's social, heavier where it's transactional - syndicats get the keys forfree, while everyone else pays a little more.
- Côte d'Or opens a digital front for Mauritius - with foreign ownership, fast-track permits and a 90-year horizon for those who build it.
- Social housing transfers: a carve-out
- EDB property schemes: under review
- Mortgages, searches and surveyor reports cost more
- Administration tightens at the Registry
- What the scheme is
- Who qualifies and on what terms
- Investor incentives
- Developer-specific incentives
Social housing transfers: a carve-out
- Transfers of immovable property from the National Housing Development Company Ltd (NHDC) or the New Social Living Development Ltd (NSLD) to a syndicat de copropriétaires will no longer attract Registration Duty, Land Transfer Tax (LTT) or the Tax on Transfer of Leasehold Rights in State Land.
EDB property schemes: under review
- The duties and taxes payable on the transfer of residential properties acquired under Economic Development Board (EDB) schemes, typically the Smart City Scheme, the Property Development Scheme (PDS) and the Integrated Resort Scheme (IRS), are to be revisited.
Mortgages, searches and surveyor reports cost more
The duty on recording a memorandum of inventory of assets subject to fixed or floating charges will rise from Rs200 to Rs500; modest in absolute terms, but a 150% jump.
Searches at the Registrar-General's immovable-property database will become more expensive: daily access from Rs200 to Rs300, and the monthly subscription from Rs2,000 to Rs5,000.
The flat duty on a land surveyor report will be replaced by a per-lot charge specified in the reports.
Administration tightens at the Registry
Fixed penalties under the Registration Duty Act will be raised to a minimum of Rs500.
The Committee that recommends refunds and remissions of duty under the Registration Duty Act and the Land (Duties and Taxes) Act will now require sign-off from the Ministry of Finance before any recommendation can take effect.
What the scheme is
- A new scheme will be introduced to attract Artificial Intelligence (AI) and digital technology investors to the Special Economic Zone (SEZ) at Côte d'Or. Eligibility extends to Developers, Operators, Founders and Financiers across the digital-economy value chain, signalling the SEZ as a long-horizon industrial bet rather than a short-term tax play.
Who qualifies and on what terms
The scheme is open to Developers, Operators, Founders and Financiers capturing the full investor chain from land development through to operating and financing.
A project qualifies only where it complies with the SEZ masterplan and meets recognised sustainability standards such as LEED certification or equivalent.
At least 70% of the land must be dedicated to approved activities, supported by modern digital infrastructure including renewable energy generation, with a clear commitment to the employment and training of Mauritians.
Investor incentives
100% foreign ownership will be permitted for qualifying projects.
A special Data Centre Electricity Tariff will be introduced.
Reliefs and exemptions on duties and taxes will be granted for qualifying projects, alongside Value Added Tax (VAT) recovery on buildings and capital goods.
A fast-track work and occupation permit delivery system will be put in place for foreign construction contractors and specialised technical personnel, compressing build-out timelines on complex projects..
Developer-specific incentives
A concessionary rental rate set at 40% of the market rate will apply for an initial 10 years.
Long-term leases of 30 years, renewable for two further consecutive periods of 30 years each, will be granted: a 90-year cumulative horizon for serious anchor projects.
Other Taxes:
In brief:
- Pour, puff, fizz or plastic; four habits, one rising bill.
- Vanity now carries a priceand no licence moves untilthe fines are settled.
- Customs Duty
- Excise Duty
- Plastic bottles
- Sugar-sweetened products
- Registration marks: an annual price tag for distinction
- Registration marks: family-only lane
- Carers move from the back seat to the front
- Motor Vehicle Licence: No clean record, no new licence
Customs Duty
The 15% customs duty on imported quartz slabs used as countertops will be abolished, lowering input costs for the construction and fit-out trade, with effect from 20 June 2026.
The customs duty exemption granted on goods imported in semi-knocked-down (SKD) form for further processing, conditional on at least 20% local value-addition, will be withdrawn.
Imported wine used as an input in the production of excisable goods will be relieved from customs duty, ending a double-taxation pinch point for local alcohol producers.
Excise Duty
Excise duty on alcoholic products will rise by 10%, with effect from 20 June 2026, except for beer and wine, which are left untouched in the headline increase.
Liqueur is not escaping: its rate will be re-aligned upwards to match the rate on rum.
Excise rates on cigars, cigarillos and cigarettes will all be increased, with effect from 20 June 2026, continuing the trajectory set in previous Budgets.
Plastic bottles
The Rs2 excise duty currently levied on PET bottles used for beverages will be extended to all plastic bottles used to contain any product, broadening the environmental levy well beyond the beverage aisle, with effect from 01 October 2026.
Sugar-sweetened products
The excise duty on sugar content will rise from 12 cents to 15 cents per gramme of sugar, with effect from 20 June 2026.
From 01 October 2026, the duty will be extended to sweets, fruit jellies, jams, crystallised fruits, biscuits, waffles, wafers and chewing gums, pulling much of the confectionery aisle into the net.
Small quantities imported for personal use such as chocolates received as gifts via courier or in a passenger's accompanying luggage, will be exempted, sparing households from incidental compliance obligations.
Registration marks: an annual price tag for distinction
A new annual fee will be introduced on motor vehicles bearing an old or personalised registration mark, payable concurrently with the Motor Vehicle Licence (MVL), with effect from 20 June 2026.
The fee is tiered by mark format, ranging from Rs2,000 for a single-letter old plate to Rs25,000 for a grouping of up to 9 letters; the heaviest charge falls on the most distinctive plates.
Registration marks: family-only lane
An owner will be allowed to retain an old or personalised registration mark on payment of a prescribed fee, even where the mark has not been re-assigned to another vehicle.
Online reservation and purchase of an old or personalised registration mark will be restricted to oneself, one's spouse, next-of-kin, ascendants or descendants.
A reduced fee will be charged for the transfer of an old or personalised registration mark to a spouse, next-of-kin, ascendants or descendants.
Carers move from the back seat to the front
The exemption from duties and taxes on the acquisition of a motor vehicle will be extended to a parent or legal guardian of a person with a disability aged 18 years and above who is in receipt of a permanent carer's allowance.
Motor Vehicle Licence: No clean record, no new licence
- Renewal of the Motor Vehicle Licence (MVL) will, henceforth, be conditional on the prior settlement of all outstanding traffic fines, with effect from 20 June 2026. The measure turns the annual MVL into a de facto enforcement checkpoint.
Tax Administration
In brief:
- More room to settle, less room to hide: the latest reforms extend the MRA’s reach and focus liability on those truly steering the ship. More room to settle, lessroom to hide: the latest reforms extend theMRA’s reach and focus liability on those trulysteering the ship.
- From software licences to social media influencers, the MRA is following the money - and the data.
- From e-invoicing to customs assessments, the reforms reward compliance and make non-compliance significantly more expensive.
- Customs is expanding its powers while narrowing the margin for error.
- Power to raise Assessment beyond the Statutory Limit
- Stay of Assessment
- Compliance Agreements
- Director’s Liability
- Tax Deduction at Source
- Information to be furnished to the MRA
- Tax Residence Certificate
- Value Added Tax
- Value Added Tax (Cont’d)
- Revenue Tribunal
- Customs
- Customs Tariff
Power to raise Assessment beyond the Statutory Limit
- The MRA will be empowered to raise an assessment beyond the statutory time limit in case of fraud or wilful neglect.
Stay of Assessment
Stay of assessment by the MRA will be extended to cover the non-remission of Tourist Fee collected for the purpose of referring a case to law enforcement agencies for parallel investigation.
The time limit within which the MRA is authorised to make an assessment or issue a claim against a taxpayer will be increased to 2 years, where an enquiry, investigation or criminal proceedings is discontinued or a court decision is obtained.
Compliance Agreements
A written agreement may be entered into between the MRA and a taxpayer regarding the taxpayer’s liability under any Revenue Law to enable early resolution of tax matters before an assessment or a claim is issued.
The binding agreement will set out the matters agreed between the parties, the amount of tax and interest payable and the payment terms.
The taxpayer will waive any right to object or appeal on matters covered by the agreement.
In case of full cooperation during the audit process, the Director-General may waive or remit assessing penalties or non-compliance penalties relating to matters covered by the agreement.
The agreement will cease to be binding on the MRA if the taxpayer fails to comply with its terms or the taxpayer does not disclose material information relevant to the agreement.
Director’s Liability
Currently, a company’s secretary, manager, or other principal officer may be treated as an agent of the company and can become personally liable for the company’s unpaid income tax.
Director’s liability in relation to unpaid income tax will henceforth be restricted to officers in an executive management position only.
The definition of “principal officer” used will be aligned with the definition provided under the VAT Act.
Tax Deduction at Source
TDS at the rate of 1% will apply on payments by a company to both resident or non resident service providers exceeding Rs300,000 under a single contract for software-related supplies and services, including software licences, applications, maintenance, and remote programme/equipment maintenance.
TDS at the rate of 5% will apply on payments by a company to a person providing advertising, promotional, endorsement, digital content, or marketing services through social media platforms or similar electronic channels.
Information to be furnished to the MRA
Statement of Utility Transactions - The CWA and the CEB will be required to submit electronically an annual statement to the MRA of all customers whose total payments exceed Rs100,000.
Statement of Insured Vehicles - An insurance company will be required to submit electronically an annual statement in respect of motor vehicles where the insured value exceeds Rs2m, specifying the amount insured and the name of the policyholder.
Access to Civil Status Information - The MRA will have electronic access to the system of the Registrar of Civil Status for the purpose of obtaining information in the Civil Status Database or the Central Population Database.
Implementation of the OECD Crypto-Asset Reporting Framework - The MRA will be allowed to collect information from Reporting Crypto-Asset Service Providers to enable the automatic exchange of information with the relevant foreign tax authorities.
Tax Residence Certificate
The service fees payable for the issuance of a Tax Residence Certificate will be increased as follows:
Value Added Tax
Where no invoice/VAT invoice has been issued and no payment received, the time of supply will be deemed to occur three months after delivery of goods or performance of services.
The time limit for requesting unclaimed input VAT credits will be reduced from 36 months to 24 months from the date the credit should originally have been claimed.
Value Added Tax (Cont’d)
Failure to provide information requested by the MRA will become an offence, punishable by a fine of up to Rs100,000 and imprisonment for a term not exceeding 2 years.
Failure to produce books and records, grant access to electronic devices, or obstruction during an inspection will be sanctioned on conviction by a fine not exceeding Rs500,000 instead of Rs200,000.
Failure to issue a fiscal invoice will be sanctioned by a penalty of Rs5,000 per day of default, capped at Rs1m, payable within 28 days of the claim being issued.
Failure to use the mandatory e-invoicing system will be an offence punishable by a fine of up to Rs500,000 and imprisonment for a term not exceeding 2 years.
The fees payable for a VAT ruling will be increased as follows:
- Where a VAT-registered person is engaged in the provision of accommodation services in a hotel or tourist residence, he will be required to remit 50% VAT in foreign currency.
Revenue Tribunal
The amount payable on appeal against a determination of the Registrar-General or a claim of the Director-General under the Customs Act, the Customs Tariff Act and the Excise Act will be at 5% of the amount claimed or Rs5m, whichever is lower.
The Registrar-General and the Director-General of the MRA may serve notice to an employee or former employee of the MRA to attend a hearing of the Revenue Tribunal for the purpose of providing evidence.
Customs
VAT-registered importers may continue to defer VAT on imports of capital goods valued at Rs500,000 or more, provided the deferred VAT is properly declared in their VAT return in the proper taxable period.
Failure to declare deferred VAT will attract a penalty of Rs10,000, with a right of appeal.
Persistent non-compliance will result in the MRA recovering the unpaid VAT.
The MRA will be empowered to raise an assessment for unpaid taxes covering the whole of a consignment of goods basing itself on the results of a tested or verified sample.
Where MRA Customs compounds an offence, the offender will be liable to pay, in addition to the duties and taxes unpaid and the compounding amount, a penalty not exceeding 50% of the duties and taxes unpaid and 0.5% interest per month.
The fee payable for a ruling by MRA Customs on classification or origin of goods will be increased from Rs500 to Rs1,000.
Customs Tariff
The MRA will be empowered to recover VAT previously exempted on imported goods where the conditions attached to the exemption have been breached.
A beneficiary of duty-free motor vehicle facilities will only be eligible to acquire another duty-exempt vehicle once the applicable exemption period has expired, in line with the Pay Research Bureau Report 2026.
Immigration:
In brief:
- Introduction of GoldenVisa, revised OccupationPermit criteria, new marriage proof requirements and extended working hours for foreign students
- Golden visa
- Foreign travellers to Mauritius
- Occupation Permit (OP)
- Residence Permit for Spouse of Citizen of Mauritius
- Residence Permit Student
Golden visa
Golden visa introduced for investors investing at least $1m in high-value sectors within their first year in Mauritius. The visa grants a stay of up to 2 years, with the option to renew.
After making the $1m investment, Golden visa holders can apply for a Permanent Residence Permit in Mauritius and work permits for accompanying domestic workers will be processed within 5 days.
Foreign travellers to Mauritius
All non-citizens will be able to apply online for a travel authorisation before travelling and a fee will apply.
The Minister will no longer have full authority to revoke a non-citizen’s residency or cancel their visa solely on public interest grounds.
Occupation Permit (OP)
The minimum initial investment for investor will be $100,000 and must meet annual turnover requirements of Rs5m from year 3 and Rs8m from year 5 to renew their permits.
The Pro Pass and Expert Pass categories will be merged. The minimum monthly basic salary for a Professional has been adjusted to Rs50,000 across all sectors.
For Self-employed permit holders, the applicable minimum business income will be reviewed at Rs2m as from year 3 of registration and Rs3m as from year 5 of registration to qualify for renewal.
A new Technical category will offer a 3-year permit, with the option to renew, under a government-to-government programme.
The family OP category has been abolished.
The EDB platform will offer 24/7 support using a multilingual chatbot and AI tools for investors and businesses.
Residence Permit for Spouse of Citizen of Mauritius
- A non-citizen marrying a Mauritian abroad should submit an official document from a competent authority to state that he/she was not married to another person when applying for a temporary residence permit in Mauritius. The application fee will be $50 (also applies to dependents) and permits can be issued digitally, as a card or in paper-based format.
Residence Permit Student
- Foreign students can work part-time up to 30 hours, instead of 20 hours, per week during school holidays and are encouraged to stay in Mauritius after studies through post-study work visas.
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