Unpacking the Mauritius Finance Act 2025: Key Reforms and Implications

The Finance Act 2025 introduces some of the most significant reforms to Mauritius’ legal and fiscal landscape in recent years. The Act redefines how companies and individuals will navigate compliance, covering corporate obligations, new tax regimes, immigration procedures, and pension reforms. Below is a detailed breakdown of the major updates and their implications.

Companies, Partnerships and Foundations

Companies must now obtain a written declaration from beneficial or ultimate beneficial owners. They also have to be notified of any change in that status.

Public Interest Entities will need to prepare an annual report within six months of their balance sheet date.

Partnerships and foundations face the same obligation, with compliance required by 30 June 2026.
For limited partnerships or LLPs holding a Global Business Licence, access to records is restricted. Only partners, officers, management companies or the FSC may inspect registers or request certificates.

Taxation Reforms

Corporate Tax

A new Qualified Domestic Minimum Top-Up Tax (QDMTT) applies from 1 July 2025. It targets multinational groups with €750m or more in revenue. The rate ensures a 15% minimum effective tax. Certain entities, like investment funds and pension funds, are excluded.

An Alternative Minimum Tax (AMT) follows in 2026. It applies to hotels, insurance, financial intermediation, real estate, and telecoms. Normal liability falling below 10% of adjusted book profits will be lifted to that level. No credits may offset AMT.

The 80% exemption regime changes. VASP-licensed firms may claim it on licensed income subject to substance rules. Banks lose it for foreign dividends. CSR contributions also change. For funds created from January 2026, 50% must be remitted to the MRA.

Incentives and Reliefs

Small and medium enterprises get a four-year income tax holiday starting July 2026. Excluded are ICT, finance, professional services, training, and activities needing a tourism licence.

SMEs with turnover below Rs100m can claim double deduction for AI technologies from July 2025. The cap is Rs150,000.

Small businesses with turnover below Rs10m may also claim a 5% investment tax credit on equipment up to Rs500,000.

Personal Tax

Personal income tax rates are revised. 0% on the first Rs500,000. 10% on the next Rs500,000. 20% on the remainder.

High earners with income above Rs12m face a Fair-Share Contribution of 15% on the excess for three years from July 2025. Certain exemptions apply, including dividends from global business entities and pension lump sums.

VAT

VAT now applies to specified digital services supplied by foreign providers. These suppliers must file returns.

Banks are exempt from issuing VAT invoices for non-resident and GBL clients. The VAT registration threshold drops from Rs6m to Rs3m.

Property Taxes for Non-Citizens

From July 2026, registration and land transfer duties rise from 5% to 10%. Applies to property acquired under RES, IHS, SCS, PDS, and qualifying apartments.

Smart City Schemes

Several incentives are repealed from June 2025 with no transitional relief. These include exemption from land conversion tax, customs duty, and income tax holidays.

Some transitional incentives remain. VAT repayment and limited tax holidays continue in certain cases, but with strict timelines.

Tax Administration

The MRA can raise assessments only within two years, except in special cases.

Penalties and interest are reduced in many areas. For example, late payment interest drops from 1% to 0.5%.

Two schemes apply until March 2026. TASS waives penalties and interest on arrears paid in full. TDSS settles disputes if taxpayers withdraw cases and pay outstanding amounts.

Immigration and Employment

Work and residence permits will be combined into a single document. Applications are handled through the National Electronic Licensing System.

A new Joint Committee will assess applications and eligibility.

Permanent residence rules tighten. Dependents are limited, and retirees must show annual income of USD 40,000 rather than a monthly USD 1,500.

Employers of non-citizens must pay an annual non-refundable fee per worker.

Banking and Finance

Private banking licensees can now manage accounts in gold, silver, and platinum. They may also buy, hold, or sell precious metals for clients and issue certificates of ownership.

Foreign exchange swaps require licensing.

Electronic bills of exchange are introduced.

A Central KYC system will be made available to KYC institutions.

Pensions and Social Contributions

The retirement pension age rises gradually to 65. It depends on month and year of birth starting from September 1965.

Employers and self-employed must pay social contributions by 15 October. Domestic workers’ employers may also opt for an annual return.

The revenu minimum garantie allowance increases. Employees earning under Rs20,000 get Rs890 per month between July 2025 and June 2026, and Rs1,890 between July 2026 and June 2027.

What this means

The Finance Act 2025 is wide in scope, reaching into ownership rules, tax, immigration, pensions, and banking. For companies, beneficial ownership declarations are now compulsory, not optional. Public Interest Entities face stricter annual reporting deadlines and missing them will bring consequences. Boards should already be preparing as of now because waiting until mid-2026 would be too late.

Tax reforms reshape the landscape for both multinationals and local firms. The 15% minimum rate under QDMTT forces groups to check their effective tax early as the top-up will not be avoidable. AMT sets a new floor for certain sectors and removes the comfort of credits. If book profits are strong, the tax bill will reflect that. SMEs do get breathing room through holidays and targeted deductions; however, everything depends on evidence of substance. No proof, no relief.

Individuals are not left out. Lower and middle-income brackets benefit from the revised bands, while high earners carry a heavier load through the Fair-Share Contribution. Anything above Rs12m will attract an extra 15%. Retirement also shifts with the pension age moving higher which means longer careers and more planning.

Immigration is tighter. Combined permits bring some simplicity, but the bar for retirees has been raised to USD 40,000 annual income. Employers using foreign workers face annual fees. These costs are not optional, and they need to be built into future budgets.

For banks and financial institutions, new ground opens up with precious metals and electronic bills. At the same time, the central KYC system signals closer oversight. This is not something that can be delayed and institutions will need to adjust systems and processes quickly.

Taken together, the Act is a message. It supports innovation, small businesses, and transparent structures. It pushes back on avoidance, weak governance, and slow compliance. The balance is clear: incentives exist, but so do sharper penalties.

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