Mauritius is no longer part of the tax blacklist of Italy, following the entry into force of the Italian Stability Law 2015. This development follows the efforts undertaken by Mauritius to raise the standards of transparency and governance in its financial sector.
In a statement, the Minister of Finance and Economic Development, Mr. Vishnu Lutchmeenaraidoo, underlined that the decision of the Italian government bears testimony of Mauritius being a transparent financial center of good repute. He further stressed that Mauritius has also taken several measures to strengthen its jurisdiction from the compliance perspective.
The announcement implies that Mauritian exports to Italy will benefit from a more favorable tax system and more Italian investors and enterprises who are on the lookout for expansion in Africa will benefit from a Jurisdiction that is dubbed as the Gateway to Africa. Trade relations between the EU and Mauritius can take flight again with new avenues of cooperation.
Mauritius has ratified treaties with over 10 African countries and close to 20 European countries among the 40 DTA agreements it has globally. Which can be accessed by the Mauritius Global Business Company I (GBC I). The Tax Treaty between Mauritius and Italy has lower applicable withholding taxes. The effective tax rate in Mauritius is 3% and no capital gains tax.
Tax incentives granted to GBCI include:
- Accesses to double taxation avoidance agreements (“DTAs”)
- Capital gains exempt from taxation
- No withholding taxes on dividends, interest and royalty payments from Mauritius
- No foreign exchange controls
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Sphere Management (Mauritius)