Mauritius Tax Changes 2025: What Foreign Investors and Expats Need to Know

Mauritius still has no capital gains tax, no inheritance tax, and a remittance basis for foreign income. The Finance Act 2025 leaves all of that intact – but it adds new layers to the tax system that affect high earners and certain business sectors. Personal income tax, which moved from a flat 15% to progressive rates back in July 2023, has been further simplified. New surcharges now apply above Rs 12 million per year. Sector-specific minimum taxes apply to certain companies. If you earn above that level, or run a business in banking, telecoms, or similar sectors, you need to know what changed.

Three changes stand out: a new Fair Share Contribution targeting high earners (temporary, but at 15%), an Alternative Minimum Tax for companies in key sectors, and the implementation of OECD Pillar Two (the Qualified Domestic Minimum Top-Up Tax). There are also several smaller changes – higher exempt person thresholds, capped tax credits, AI investment deductions, and a shift to foreign currency tax payments for some companies.

Below: what’s changed and who it affects. For the full picture of how the Mauritian tax system works for expats, read the guide. For the QDMT specifically, see the dedicated OECD Pillar Two article.

Fair Share Contribution: the new high-earner levy

The headline change for individuals. The Finance Act 2025 introduces a “Fair Share Contribution” – a 15% surcharge on high earners. Here are the details:

• Who it applies to: Any individual whose “Fair Share Contribution income threshold” exceeds Rs 12 million (~GBP 204,000 / ~USD 260,000) in an income year
• Rate: 15% of the “leviable income” in excess of Rs 12 million
• Duration: Three income years only – commencing 1 July 2025 and the subsequent two income years
• Payment: Due at the time of submitting the annual income tax return

What counts as “Fair Share Contribution income”?

This isn’t just your salary. The threshold is the sum of:

• Your net income
• Dividends paid to you by a resident company or co-operative society
• Your share of dividends from a resident société or succession

What’s excluded?

Critically for the global business sector:

• Dividends from global business entities – these are specifically excluded from the threshold calculation
• Lump sum pension commutations, death gratuities, and consolidated compensation for death or injury
• Payments from superannuation funds or approved personal pension schemes

The exclusion of GBC dividends is notable. If your income primarily flows through a Global Business Licence company, the Fair Share Contribution may not apply to you at all, regardless of total income. The levy targets domestic high earners and local company dividends, not the international financial services sector.

Practical impact

For an expat earning Rs 15 million per year (about GBP 255,000), the additional Fair Share Contribution would be 15% of Rs 3 million (the excess above Rs 12 million) = Rs 450,000 (~GBP 7,650). That’s on top of the standard 15% income tax.

It’s temporary – three years. But “temporary” taxes have a way of becoming permanent in every jurisdiction, so plan accordingly. To model your own numbers under the current bands, use the Mauritius income tax calculator.

Alternative Minimum Tax: the 10% floor

The Finance Act 2025 introduces an Alternative Minimum Tax (AMT) under a new Section 44A of the Income Tax Act. This is targeted at companies in specific sectors where the effective tax rate falls below 10%.

Who it applies to

The AMT applies to “companies” as specifically defined – this is not a general corporate tax:

• Hotel companies licensed under the Tourism Authority Act
• Insurance companies
• Financial intermediaries (under the Securities Act, Insurance Act, or Financial Services Act)
• Companies engaged in real estate activities
• Telecommunications companies

Who is exempt

• Global business entities – explicitly excluded
• Entities listed under Part I of the Second Schedule to the Income Tax Act
• Companies qualifying for various specific exemptions (items 11, 11A, 26, 28, 29, 30, 30A, 31(b), 34, 36, 38, 49, 50, 56, 57, 58, and 59 of the relevant schedule)

How it works

Where the normal tax payable is less than 10% of the company’s “adjusted book profit” in an income year, the tax payable becomes 10% of the adjusted book profit. In effect, there’s a 10% minimum effective tax rate for these sectors.

“Adjusted book profit” means profit computed under internationally accepted accounting practices, reduced by dividends receivable from resident companies, profits on disposal/revaluation of fixed assets, and profits from sale/revaluation of securities – and increased by losses on disposal/revaluation of fixed assets and securities.

No tax credits available under the Income Tax Act can reduce the AMT below 10%. This is the floor.

Tax credits now capped at Rs 100 million turnover

Previously, various tax credit incentives were available to all qualifying companies regardless of size. The Finance Act 2025 adds a turnover cap: most tax credit provisions (sections 65B, 66, 66A, 67, 67J, 67K, and 67R of the Income Tax Act) now only apply to companies with annual turnover not exceeding Rs 100 million (~GBP 1.7 million).

This is a meaningful change for mid-size companies that have been using these credits. If your turnover exceeds Rs 100 million, these deductions are no longer available to you.

New AI investment tax deduction

On the incentive side, the Finance Act 2025 introduces a new deduction for capital expenditure on Artificial Intelligence technologies (Section 67T of the Income Tax Act). Companies with turnover not exceeding Rs 100 million can claim a deduction from gross income for AI-related capital expenditure, in addition to the standard annual allowance.

The details of qualifying AI technologies will be defined by regulation, but the direction is clear – Mauritius wants to encourage AI adoption among smaller businesses.

Exempt person threshold increased

The “exempt person” income threshold – below which individuals don’t need to file a return – has been increased from Rs 30,000 to Rs 38,462 per month. This is a modest but welcome adjustment that takes more lower-income earners out of the tax filing requirement.

CSR Fund changes

Companies setting up Corporate Social Responsibility (CSR) funds from 1 January 2026 onwards only need to remit at least 50% of the fund to the Director-General (previously 75% for funds set up between 2019 and 2025). This gives companies more discretion over how they spend their CSR allocation.

APS penalty reduced

The Advance Payment System (APS) penalty rate has been reduced from 5% to 2.5%. Companies that file and pay their quarterly APS statements will face lower penalties for shortfalls.

Tax payment in foreign currency

A notable administrative change: companies that derive more than 50% of their gross income in specified foreign currencies must now express their income in that currency and pay their income tax in that foreign currency. This applies to tax payable under sections 44 (standard corporate tax), 44A (AMT), and 50D.

If the company derives more than 50% in a combination of foreign currencies (but not more than 50% in any single one), it can choose which currency to pay in. Banks must pay the Mauritius-currency portion of tax arising from transactions with residents other than global business entities.

What this means for foreign investors and expats

The core Mauritius tax proposition – low progressive rates (0-20%), no CGT, no inheritance tax – remains intact. The Finance Act 2025 adds complexity at the top end:

• If you earn under Rs 12 million: No Fair Share Contribution. Your tax position is essentially unchanged
• If you earn above Rs 12 million from local sources: Plan for an additional 15% on the excess, for 3 years
• If your income is from GBC dividends: Fair Share Contribution doesn’t apply. You’re in the clear
• If you run a hotel, insurance, real estate, or telecoms company: The 10% AMT floor is new. Check your effective rate
• If your company turns over more than Rs 100 million: Several tax credits are no longer available
• If you earn primarily in foreign currency: You’ll now pay tax in that currency too

For the full Mauritius tax guide or investing overview, follow the links. For updates as implementation details are published, subscribe to the newsletter.

Disclaimer: This article is for general informational purposes only and does not constitute tax, legal, or financial advice. Tax legislation is subject to change and interpretation – always consult a qualified tax professional in Mauritius before making decisions based on this information. The Finance Act 2025 provisions described here are current as of August 2025.