A resident company is liable to income tax on its worldwide income, excluding exempt income; a non-resident company is liable for this tax on its income arising or deemed to arise in Mauritius. The Income Tax Act 1995 defines a resident company as one that is incorporated in Mauritius, or if it has its central management and control in Mauritius. The place where central management and control are located would be determined by such factors as where the board meetings are held and hence where decisions are taken and orders given. 

A non-resident company is liable to income tax only on its income arising or deemed to arise in Mauritius, i.e. source income. A partnership or societé having its seat in Mauritius with at least one partner or associate being resident in Mauritius is resident in Mauritius. A trust in which a settlor is non-resident or all the beneficiaries hold either a Category or Category 2 Global business licence can elect to be non-resident by filing a declaration to that effect; otherwise, it is a resident trust for tax purposes.

Income derived from Mauritius includes:

  • Income derived from any business carried out or any contract wholly or partly performed in Mauritius.
  • Emoluments derived from any office or employment, the duties of which are performed wholly or mainly in Mauritius, whether such emoluments are received in Mauritius or not. 
  • Income derived from outside Mauritius by a resident of Mauritius. 
  • Income derived from investments in shares, debentures or other securities in Mauritius.
  • Income derived by a person from money lent by him outside Mauritius.

Where the source of any income is not exclusively in Mauritius, that income shall be apportioned between its source in Mauritius and its source elsewhere in such a manner as the Commissioner of Income Tax thinks fit.