In Mauritius, the taxation of insurance companies, particularly those engaged in life assurance business alongside other types of insurance, is subject to specific rules aimed at ensuring clarity and fairness in income tax assessment.

When a company operates both life assurance and other types of insurance businesses, the life assurance component is treated distinctly for income tax purposes. The net income derived from the life assurance business is calculated by subtracting the total expenses (including management expenses, commissions, and allowable deductions) from the income generated from investments specifically held in connection with the life insurance business. This calculation excludes income related to general annuity and pension business activities.

If a company receives premiums from both Mauritius and abroad, the net income calculation becomes more nuanced. For a resident company, the net income from premiums received outside Mauritius is determined by allocating a proportionate share of the company’s total investment income corresponding to the ratio of premiums received in Mauritius to total premiums received worldwide. Deductible expenses include all management expenses, commissions, and allowable deductions incurred by the company.

For non-resident companies, the net income attributable to premiums received in Mauritius considers management expenses, commissions paid within Mauritius, allowable deductions, and a reasonable allocation of the head office expenses. This ensures that the tax assessment reflects the operational costs and income generated within Mauritius, aligning with international tax standards and local regulatory requirements.

These provisions aim to maintain a fair tax environment for insurance companies in Mauritius, supporting the jurisdiction’s attractiveness as a hub for international insurance and financial services. By delineating the taxation of life assurance business separately and providing clear guidelines on income and expense attribution, Mauritius seeks to foster transparency and compliance while encouraging investment in its insurance sector. Compliance with these regulations is crucial for insurance companies operating in Mauritius to ensure regulatory adherence and optimize their tax obligations effectively.