Tax Legislation In Mauritus Essay

1587 words - 7 pages

The main income tax legislation in Mauritius is the Income Tax Act 1995 as amended by subsequent Finance Acts. Corporate and Personal Taxes are embodied under one heading of Income Tax and are payable by all resident companies and individuals on non-exempt income derived from Mauritius and from other sources. The profits of all Resident ‘Sociétés’ (Partnerships) are taxable in the hands of the associates in proportion to their profit sharing ratio. A non-resident société is liable to income tax as if the société was a company. ‘Resident’, in relation to an income year, means:
• a company which is incorporated in Mauritius or has its Central Management and control in Mauritius
• an individual who:

a) has his/her domicile in Mauritius unless his/her permanent place of abode is outside Mauritius
b) has been present in Mauritius in that income tax year for a period of, or an aggregate period of, 183 days or more or has been present in Mauritius in that income year and the two preceding income years for an aggregate period of 270 days or more

• a société which has its seat in Mauritius and includes a société which has at least one associate resident in Mauritius
• trust – where the trust is administered in Mauritius and a majority of the trustees are resident of Mauritius or where the settler of the trust was resident in Mauritius at the time the instrument creating the trust was executed
• any other association – an association or body of persons which is managed or administered in Mauritius.

Personal Tax
As from 1 January 2010, the fiscal year is on a calendar year basis. Income Tax is payable by residents on non-exempt income derived from Mauritius less allowable deductions including interest on housing loan, subject to conditions. Employers deduct income tax from each salary payments of all individual taxpayers.
The personal tax rates have evolved as follows:

A resident individual is liable for personal income tax on his or her world-wide income; however, earned income arising outside Mauritius is taxed only if it is received in Mauritius. Non-resident individuals pay tax only on their income arising or deemed to arise in Mauritius. There are some income tax privileges for certain employees of offshore entities.
• The expatriate staff of GBC1 and GBC2 (Offshore) Companies (and of other types of offshore entity) pay half the normal rate of personal income tax; two of them per company can import cars and household equipment free of customs duty;
• The crew of ships on the Mauritian Open Registry are exempt from payroll taxes;
• For companies in the Export Processing Zone, two expatriate staff are partly exempted from income tax.
Income tax:
Income is comprehensively defined, including at least the following categories:
• income from employment, including allowances, bonuses, commissions, gratuities (in cash or in kind);
• pensions and annuities resulting from past employment;and compensation for loss of office;
• dividends;

Find Another Essay On Tax Legislation in Mauritus

Southern African Development Community Essay

1796 words - 7 pages Foundation Index of Economic Freedom, the Forbes Survey of Best Countries for Business, the Democracy Index, the Mo Ibrahim Index of African Governance and the Environmental Performance Index amongst others. The fiscal regime is among the most globally competitive ones with personal and corporate tax harmonized at a low rate of 15%. Currently a Business Facilitation Act is in force to further ease of doing business. Nowadays launching of business

Taxation in Kazakhstan Essay

3080 words - 12 pages legal entities are subject to a dividend distribution tax at a rate of 15%. Thus, the effective tax rate for both foreign and Kazakhstan legal entities is 40,5%, assuming a 30% income tax rate.Corporate residence is generally determined by the place of incorporation.Income generated by the business activities of a permanent establishment in Kazakhstan is taxable under Kazakhstan legislation without regard to where payments are received. Kazakhstan

Chinese Head Tax Essay Assignment - SRJ - Essay Assignment

1073 words - 5 pages Corrine Kuo Kuo.1 Kuo.1 Mr. M. Henderson CCW 14 (10F) 7 March 2014 Chinese Head Taxes and the struggles of Chinese immigrants Why would the Chinese need to pay for their family? This dilemma started in 1885 when the Dominion (federal government) introduced a new legislation known as Chinese Head Tax, which Imposed a fee for

Double Taxation Relief

3628 words - 15 pages income. There is some debate in a number of jurisdictions in which every government involved in international commerce act: whether a double tax agreement can have the effect of imposing a liability to tax where none existed under domestic legislation or whether such an agreement is restricted in scope to providing relief from tax (methods).Tax treaties represent one of the important aspects of international tax rules of most countries. The basic

The Estate Tax

1258 words - 5 pages The Estate Tax Have you heard the phrase "No taxation without representation"? It was the common cry of the colonists before the revolutionary war. The colonists did not want to be taxed by England if they were not allowed to vote in the English elections. England’s refusal to allow them to vote was a major reason the colonists decided to create their own government. When this new government was first created it did not tax those people

International Tax Planning

1334 words - 5 pages receiving offshore income of their residents. It means that the income of offshore controlled by resident forcibly included in the taxable income of that resident. In order to get information about offshore companies controlled by its residents, developed countries enter into agreements with offshore zones for the exchange of tax information. In addition, the offshore jurisdictions are under pressure to change their legislation in the direction of

Corporate Finance

2753 words - 11 pages equipment. In view of the uncertainty about whether a rumored new tax legislation will come into effect or not, company like Paperco must examine the net present value of the old facility and new purchasing (with ITC earned or not) respectively in order to decide if it's worth investing. In this paper, net present value of new facility under both existing and rumored tax legislation are calculated, as well as the expected cost savings for Paperco. On

The Marketplace Fairness Act

2116 words - 8 pages . It stated that there must be a large physical presence of a company in a state for that state to lawfully require the company to collect taxes inside the state (Andes & Atkinson, 2013). With the growth of the Internet, many of these misconceptions are attempting to be understood through various forms of legislation. In 2013, Congress introduced the Marketplace Fairness Act. It provides state governments the authority to tax out-of-state sellers

Tax Evasion or Tax Avoidance: Is Starbucks` Tax planning and Practice Setting a Bad Precedent?

1949 words - 8 pages example is that of ecommerce, it was difficult for tax authorities to put legislation that covers exchange of goods and services purchased over the internet. 3. Dealing with Tax Avoidance The major task of any tax administration is to eradicate the problems of non-compliance. Non- compliance can take many forms, but in the final analysis it can be classified into two types, namely tax evasion and tax avoidance. Historically tax evasion and tax

Legislative Leadership

2924 words - 12 pages worded in such a way that you would have to really look hard to figure out what the titles of the legislation really meant. "The American Dream Restoration Act"(tax code reform), "The Common Sense Legal Reforms Act"(tort and product liability changes), and "The Taking Back Our Streets Act"(crime control), all of this legislation were worded in The Contract with America. Any piece of legislation can be drafted by anyone that would like to help

Herman Cain's Plan to Reduce Legislation and Boost the Economy

1283 words - 5 pages way of doing things needs to come about in Washington. Herman Cain’s job creation plan is better than the Democrats’ because of the 9-9-9 plan, reduction in legislation, and more lax regulation. Supporters of the Democratic jobs bill say that more reforms and more legislation is the key to getting America’s economy intact. They feel the more the government controls, the less likely more damage will be done to the economy. This is a false belief

Similar Essays

The Flat Tax Essay

992 words - 4 pages The flat tax structure applies an “average tax rate [that] is the same at all income levels [with] everyone pay[ing] the same percentage of their income in taxes” (Gwartney, Stroup, Sobel, & Macpherson, 2013, p. 84). The theory behind the flat tax system stems from the fundamental concept of supply-side fiscal policy that states, “Lower tax rates increase the incentive of people to work, supply resources, and use them more efficiently and

Tax Law And Accounting Paper

1306 words - 5 pages political considerations. The primary purpose for enacting tax legislation in 1913 was to obtain revenue for governmental needs (Arnett, 485). Congress in most cases uses the concept of revenue neutrality when it comes to tax legislation which simply means that changes made will neither increase nor decrease the net result (Hoffman, pg 1-24).Economic considerations fall into four categories which are control of the economy, encouragement of

Professional Challenges In Computing Essay

2073 words - 8 pages -based companies. However, these both internet giants, by invoicing their UK sales form those countries, where low corporate tax are applicable, they have succeed in paying no/less tax in the UK. Amazon paid £3.2 million in tax on £4.3 billion of sales in 2012 and Goole paid only £6 million in tax on £3.2 billion of sales in 2011. Using their skills these company’s employees try to find a pin hole in tax legislation of UK and try to escape from

Generation Skipping Tax Essay

1331 words - 6 pages . Congress passed the original generation-skipping transfer tax in 1976 to go along with the federal gift and estate tax system to make sure that the transfer of wealth from one generation to the next would have the same tax effects. The most common tax planning strategy was to pay income to one’s child for the child’s life and then distribute the trust property to his or her grandchildren at the child’s death before this legislation.1 The generation