2025 – Mauritius | Tax, Financial Services, and Regulatory Reforms
Income Tax Reforms (2025)
The Income Tax Act will undergo major simplifications, reducing tax bands from 11 to 3. A full tax exemption is introduced for individuals aged 18–28 earning up to MUR 1 million annually. New fringe benefit valuations will apply to company cars, and deductions for dependents with disabilities are now fully allowed. A temporary 15% and 5% Fair Share Contribution will be imposed on high-income individuals and corporates, respectively. Some personal tax reliefs and SME tax holidays will be removed. SMEs will benefit from a 5% investment tax credit. Adjustments to the Partial Exemption Regime will affect virtual asset providers and banks, while the Alternative Minimum Tax and QDMTT will apply to specific sectors and multinationals. Property taxes, including registration and land transfer duties, will increase under certain conditions.
Tax Administration
To ease compliance, a one-time Tax Dispute Settlement Scheme (TDSS) offers full waiver of penalties and interest if resolved by 31 March 2026. The Tax Arrears Settlement Scheme (TASS) has been extended for arrears up to 30 June 2025. Export-based businesses may now pay taxes in foreign currency. Late submissions under the Current Payment System won’t incur penalties. Tax ruling application fees will rise, and fee collection for business registrations will shift to the Mauritius Revenue Authority (MRA).
Value Added Tax (VAT) Act
Key VAT reforms include lowering the VAT registration threshold from MUR 6M to MUR 3M and applying VAT to foreign digital service providers from January 2026. The VAT Refund Scheme on residential property ends in June 2025. Administrative reforms include tighter rules for input tax credits, reverse VAT on more sectors, and mandatory VAT registration for licensed pleasure craft operators. Penalties for offences will increase significantly, and the Voluntary Disclosure Scheme (VDSS) for VAT runs until March 2026.
Financial Services Sector Reforms
Major reforms aim to strengthen innovation, regulation, and transparency. Bullion banking will be introduced, and new licensing frameworks will cover wealth management and family offices. Trade finance will go digital through legal recognition of electronic documents. The FSC will implement a unified e-licensing platform integrated with KYC systems. Mauritius will also enhance AML/CFT efforts ahead of the 2027 ESAAMLG evaluation. Amendments to the Bank of Mauritius and Banking Acts will expand regulatory oversight and streamline asset recovery processes. Registration fees and compliance obligations will increase, and new requirements will apply to directorship changes and share transfers.
Data Protection and Sanctions Legislation
The Data Protection Act will be amended to comply with the Council of Europe Convention and EU GDPR, strengthening data privacy and compliance. A National Sanction Committee (NSC) will be created as a body corporate, while the Financial Crimes Commission (FCC) will manage seized assets and be empowered to seek court orders. The UN Sanctions Act will be updated to include a new resolution on Haiti.
Tax Collection, Social Welfare, and Business Facilitation
Registrar General’s Department and Property Taxation
The Arrears Payment Scheme (APS) has been extended to 31 March 2026, allowing full waiver of penalties and interest. Registration duties have increased: fixed duties rise from MUR 300 to 500, minimum duty from MUR 200 to 500, and administrative fees double to MUR 200. A 5% duty applies when immovable property is added to a trust from a settlor or beneficiary. New provisions govern share transfers, combined property valuations, and land-for-equity transactions. Electronically signed documents will be accepted from regulated entities, and objections to share transfers must now be raised within 28 days.
Support for Employers and Workers
From January to June 2025, financial support will be given to employees in sectors like NGOs, SMEs, export-oriented firms, public transport, and other key industries. MUR 610 per month is allocated to employees of charitable and related institutions. Wage assistance continues for export enterprises regardless of profitability. In 2025, employees will receive MUR 2,333 monthly (including bonus), decreasing to MUR 1,167 in 2026, with caps for some categories.
Social Contribution and Benefits
The “Revenu Minimum Garantie” and Equal Chance Allowance will be extended to June 2027. Minimum wage earners will receive MUR 2,333 per month in 2025 and MUR 1,167 in 2026. Employees earning up to MUR 50,000 will receive scaled benefits. From July 2025 to June 2027, the allowance will be MUR 890 to MUR 1,890 monthly, while the Equal Chance Allowance remains at MUR 2,000. CSG-related allowances—income, child, school, maternity, pregnancy—will be renewed and gradually reduced from July 2026, except for those listed in the Social Register of Mauritius.
Ease of Doing Business and Immigration Reforms
To boost investment, the Economic Development Board (EDB) will roll out new schemes, including the Innovative Mauritius Scheme, Diaspora Scheme, and Women Entrepreneur Loan Scheme. The EDB Act will be amended to digitize Occupation Permit (OP) applications and introduce new permit categories for professionals and investors. Criteria for self-employed and retired non-citizens will be revised. Immigration Act changes will reduce the duration of some permits from 10 to 5 years, enforce a 180-day stay for retired permit holders, and limit dependents’ age to 24. Companies hiring expatriates will pay an annual fee instead of providing financial guarantees. The Non-Citizens (Employment Restriction) Act will be updated to allow digital permit processing via the National Electronic Licensing System or NELS, with permits issued under a unique ID system.