The Mauritius 2026/2027 National Budget

On 19 June 2026, the Hon Prime Minister and Minister of Finance presented the 2026/2027 National Budget to the National Assembly. This article summarises the key fiscal measures announced.

Personal Tax

• A new personal income tax band of 35% will apply on chargeable income exceeding MUR 12 million (approx. USD 250,000). This new tax band will replace the existing Fair Share Contribution applicable to individuals.
• A Golden Visa Scheme will be introduced for individuals investing at least USD 1 million within the first 12 months of their stay in Mauritius in high-value sectors, including FinTech, Global treasury, Artificial intelligence, Biotechnology, and Renewable energy.  The visa will be valid for a period of up to two years and be renewable.  Golden Visa holders have the following tax incentives:

a) foreign employment income will be taxable only to the extent remitted to Mauritius;

b) expenditure incurred locally through the use of foreign credit or debit cards will not be subject to tax; and

c) funds deposited into a Mauritian bank account will not be taxable where the individual confirms that taxes have already been paid in a foreign jurisdiction.

The visa holders who complete the minimum investment requirement of USD 1 million will be eligible to apply for permanent residency in Mauritius and the work permits of their accompanying domestic workers will be processed within five working days.

Corporate Tax

• The existing 10-year tax holiday available to captive insurance companies will be extended by a further five years for captive insurers licensed prior to 19 June 2026.
• For purposes of determining liability to the Fair Share Contribution applicable to corporates, the conditions will be amended so that the sole criterion will be that of having chargeable income exceeding MUR 24 million during an accounting year.
• Non-resident companies supplying software, software licences, software applications, software maintenance services and distance maintenance of programmes and ICT equipment will be expressly brought within the Mauritian income tax net.
• The definition of core income-generating activities for Investment Advisers and Asset Managers benefiting from the partial exemption regime will be expanded to include the management of non-securities assets, including loan receivables, mortgage-backed exposures, and invoice financing portfolios.
• Companies will now be permitted to utilise only up to 25% of their Corporate Social Responsibility ("CSR") Fund directly, while at least 75% must be remitted to the National Social Inclusion Foundation ("NSIF") through the Mauritius Revenue Authority ("MRA").

Qualified Domestic Minimum Top-Up Tax ("QDMTT")

The legislation will be amended to align with the OECD Global Anti-Base Erosion ("GloBE") Rules. Key amendments include:

• investment funds and real estate investment vehicles acting as parent entities of multinational enterprise groups will be exempt from QDMTT. This amendment will apply retrospectively from 1 July 2025;
• consolidated adjustments relating to intra-group transactions will be allowed when computing net income or loss;
• the fiscal year of a multinational enterprise group will correspond to the accounting period used by its Ultimate Parent Entity for preparing consolidated financial statements, provided these are prepared under acceptable accounting standards;
• QDMTT returns will need to be filed within 15 months from the end of the month in which the fiscal year ends;
• taxpayers will be allowed to amend a QDMTT return within three years of filing (currently two years); and
• the penalty for non-payment of QDMTT will be reduced from 5% to 2.5%.

Corporate Climate Responsibility Levy ("CCR Levy")

• Taxpayers will no longer be permitted to offset unused tax credits, including foreign tax credits, against the CCR Levy.
• The CCR Levy will progressively be brought within the Advance Payment System ("APS") as follows:

Value Added Tax ("VAT")

A foreign supplier of digital or electronic services will not be required to:

• register for VAT where taxable supplies are made exclusively to VAT-registered persons, in which case the reverse charge mechanism will apply;
• appoint a tax representative for VAT filing and payment purposes;
• compulsorily register for VAT where annual taxable turnover is below MUR 3 million; and
• provide information that would breach confidentiality requirements applicable in its home jurisdiction.

Online marketplaces and digital platforms are expected to fall within the scope of digital and electronic services.

Tax Administration

• The MRA will be empowered to issue assessments beyond the statutory limitation period in cases involving fraud or wilful neglect.
• A new framework will be introduced to facilitate the early resolution of tax disputes. Under this framework, taxpayers and the MRA may enter into a written Compliance Agreement before the issuance of an assessment or claim. Such agreements will set out the matters agreed, tax and interest payable and payment terms, and will be binding on both parties.

Expansion of Tax Deduction at Source ("TDS")

The scope of TDS will be extended to include:

• payments exceeding MUR 300,000 under a single contract to resident or non-resident service providers for software, software licences, software applications, software maintenance services, distance maintenance of programmes and equipment, on which TDS at the rate of 1% will apply; and
• payments to persons providing advertising, promotional, endorsement, digital content or marketing services through social media platforms or similar electronic means, on which TDS at the rate of 5% will apply.