As a businessowner wanting to expand your horizons, one of the things to consider when moving to Mauritius is that setting up a business correctly can save you tax. At Move to Mauritius, we have years of experience in setting up businesses using business licence categories one and two.
When you apply for and receive a GBL 1 or Global Business licence category 1, your company can receive a perk of as little as 3% company tax. This is also the most confidential of business licences. With it, you can practice a wide range of activities such as holding investments, consulting firms, asset management, project management and other options.
The maximum tax rate of 3% is worked out by taxing a GBL 15% on its chargeable income. One can then claim a foreign tax credit in respect of foreign tax actually paid, or an assumed 80% foreign tax credit.
Benefits of A GBL 1:
Global Business Licence Category 2 Or Authorised Company
A Global Business Licence Category 2 company, or Authorised Company is one that does not deal with Mauritian residents or the local currency. It works in any other currency other than Mauritian Rupees. As a private company, a GBL 2 falls under several industries, which include marketing agencies, international trading agencies or is used for invoicing purposes where treaty benefits are not essential. It is also important to note that Mauritian Income Tax is capped at 15%
Partial Exemption Regime
As of January 2019, a new tax law harmonising the rate of tax for both foreign companies holding a GBL 1 and local companies was implemented. This sets everyone at 15% and is in place to prevent tax fraud and tax treaty abuse. This law applies to:
If you’re ready to take on a new adventure, become a Mauritian resident and set up your business, we are ready help you make the next big move for your business. Get in touch with us today!
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