Incentivises Investment
In Mauritius, the government incentivises investment and economic growth through various tax credit schemes designed to stimulate specific sectors and activities. These incentives provide companies with financial benefits that help offset their tax liabilities and encourage strategic investments. Here are some key tax credit provisions:
Subscription to Share Capital of Tax Incentive Companies: Companies that subscribe to the share capital of a tax incentive company listed on the Stock Exchange can claim a tax credit equal to 10% of the amount paid in cash. This credit is applied as a deduction from the company’s income tax payable. The credit amount is spread equally over two consecutive income years to provide sustained financial relief. However, the total credit claimed in any one income year cannot exceed MUR 300,000. This incentive encourages investment in companies benefiting from tax incentives, fostering capital market participation and supporting growth-oriented enterprises.
Modernisation and Expansion Enterprises (MEE): MEEs undertaking significant capital expenditure projects of at least MUR 10 million are eligible for a tax credit equivalent to 10% of the capital expenditure incurred. This credit aims to facilitate modernization, expansion, and technological upgrades across various industries, enhancing productivity and competitiveness. The tax credit provides a direct financial incentive for companies to invest in infrastructure, equipment, and technology, thereby stimulating economic development and job creation.
Export-Oriented Companies: Companies engaged in the export of goods manufactured in Mauritius or in the provision of services to non-residents may qualify for specific tax credits as prescribed by regulations. These credits are designed to support and promote Mauritius’ export sector, enhancing international trade relations and diversifying the economy. The incentives aim to reduce the cost of doing business for exporters and service providers, thereby increasing their competitiveness in global markets.
Tax Credit Schemes Benefits
These tax credit schemes underscore Mauritius’ commitment to attracting investment, fostering innovation, and enhancing economic diversification. By incentivising strategic investments in growth-oriented sectors such as technology, manufacturing, and export-oriented services, the government aims to create a dynamic business environment conducive to sustainable economic development and job creation. Companies planning to capitalise on these incentives should ensure compliance with eligibility criteria and leverage these opportunities to optimise their financial strategies and operational efficiencies in Mauritius.
