Mauritius tax authority to get powers to require information from trusts

The budget also includes several other measures affecting the rules governing its international financial centre. Further reforms of the sector's legislative framework will take place with the aim of bringing the domestic and global business regimes closer together.

Entities licensed as Global Headquarters Administration companies, or as global shared services or global treasury activities, will be removed from the scope of financial services under the Financial Services Act. Instead, they will be regulated separately, in line with the Financial Action Task Force's (FATFs) anti-money laundering (AML) recommendations. The country recently exited the FATF grey list and EU black list.

The government is hoping to further promote the IFC's activities through family offices (FOs) and the Global Headquarters Administration Licence. The minimum portfolio to manage a FO will now be USD5 million per FO to attract high-net-worth individuals and their families, and work and residence permits will be provided to five executives and their dependents who hold Global Headquarters Administration Licence.

The rules on investor visas are also being changed. Non-citizens who invest more than USD375,000 each into a single residential property under 'fractional ownership' arrangements will be entitled to apply for residency status, but will be prevented from acquiring residential property through the acquisition of shares. Holders of residence permits will be allowed to acquire a residential property of a minimum of USD350,000 outside the existing schemes, but will have to pay a 10 per cent levy into the government's COVID-19 Solidarity Fund.

The Bank of Mauritius will be authorised to open bank accounts and accept deposits from individuals for the purposes of issuing digital currency. Moreover, banking licences will be easier to get, and will depend only on the applicant's fulfilment of all statutory conditions and submission of all relevant documents.

Company registration is being significantly reformed. Although registration charges will be abolished, companies will no longer be allowed to be registered both in Mauritius and another jurisdiction simultaneously. The Companies Registrar will have powers to de-register a company if the reason for its existence has ended, though there will be a process for restoring such companies to the register of companies if still undertaking business at the time of removal.

• A domestic minimum top-up tax is being introduced to ensure that resident companies of large multinationals are taxed at a minimum rate of 15 per cent, in line with the OECD’s Inclusive Framework on Base Erosion and Profit Shifting.

Sources

• Appleby Global Services
• IQEQ
• Mauritius government
• Dentons