Why Mauritius Offshore is a Tax Haven

Mauritius Offshore - a Tax Haven

Have you planned to open an offshore company in Mauritius? If yes, then you must be definitely knowing that it is a tax haven. In this blog, we will provide you with details regarding that. 

Mauritius is a cluster of islands in the Indian Ocean. It is located about 2,000 miles east of Africa's southeast coastline and to the east of Madagascar. Most of the inhabitants of Mauritius live on the largest of these islands, i.e., Mauritius. It has an area of about 787 square miles.

Mauritius Offshore Companies

Mauritius offshore companies also offer investors with two types of investments for managing their offshore funds like the collective investment schemes or the private equity funds. The investors wish to set up tax-efficient companies in Mauritius. They have two options-set up a global business company or an authorized company. A global business company is a tax resident company, and the authorized company is a classic offshore company. A tax benefit company can benefit from an 80% exemption of corporate income tax.

Advantages of Setting up an Offshore Company in Mauritius

  • Mauritius is one of those countries that have the lowest tax platforms in the world. Both the corporate and individual income taxes here are at 15%. Mauritius is therefore, a tax haven.
  • Offshore businesses located in Mauritius are exempt from Mauritian taxes that do not do business with Mauritians nor use Mauritian currency Investors can rely on Mauritius for asset protection.
  • The Mauritius offshore jurisdiction is on a par with Panama, Liechtenstein, Jersey, and similar offshore jurisdictions as being a good place to do business.
  • Mauritius enjoys preferential access to developed and emerging markets, including the US.
  • Foreign nationals who have stayed in Mauritius for a minimum of 3 years and are earning a salary above a certain minimum can obtain permanent residency. This is required as a permanent resident can only purchase property on the island.
  • The growth outlook for the country is broadly positive. The monetary and exchange rate policies are also appropriate, and even the net international reserves are seen to be adequate.
  • One of the biggest advantages of Mauritius offshore company formation is the high level of privacy protection made possible by the way that a company's shareholding structure can be defined.
  • The offshore financial centre of Mauritius is supported by the HSBC Group. It operates 11 full-service branches in Mauritius along with a locally owned subsidiary dedicated to offshore banking.
  • The democratically elected government of Mauritius has enjoyed stability since the country's independence.
  • There are a lot of opportunities to have access to Mauritius offshore banks and offshore bank accounts that can be paired with a Mauritius company. You can open an offshore bank remotely without the need of physically visiting the bank.
  • The WHO has ranked the air quality index of Mauritius as the 2nd best on the planet.

Mauritius Offshore as a Tax Haven

Mauritius offers a number of tax incentives as an offshore jurisdiction to offshore investing. This includes an open economy, favorable tax laws, and a modern banking system all in a rich tropical environment.

Mauritius has one of the most stable economies. It is said to have one of the most open and financially sound economies in the sub-Sahara region of Africa.

Mauritius is an active member of a number of international organizations, including the International Monetary Fund, the World Bank, and the World Trade Organization. It also has strong economic ties with its African neighbours, the European Union, China, and India.

In the three decades since Mauritius changed into a desirable financial hub, it has been criticized for bankrupting African governments and widening wealth inequality. Though the number of millionaires in the island grew very rapidly, the United Nations Economic Commission on Africa in 2013 censured Port Louis for deepening the exposure of African states to illegal financial flows.

Improving tax regimes in Mauritius

Some investors will say that they prefer to use Mauritius to open their offshore company because the tax and investment regimes in countries like Ethiopia are not yet up to par with international standards. The investment decisions are usually not just based on taxation but at the expense of other conditions, including infrastructure, economic conditions, security, and political stability.

 The tax accords in Mauritius were based on a mix of global and UN tax treaties. It renegotiated 60% of those deals since 2009.  However, there’s a need for comprehensive global solutions on tax avoidance regimes. The experts say African government could also take steps solitarily or as regional blocs. This comprises introducing a minimum tax for corporate profits.

Business Setup Worldwide is a platform to guide you through this. If you need any assistance in forming an offshore company in Mauritius, then you can contact us! We’d be glad to assist you.

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