Mauritius Budget Highlights 2022-2023
Given the current difficult economic backdrop of a post Covid world, coupled with the Russia-Ukraine conflict, which has triggered unprecedented inflationary pressures, the 2022-2023 Mauritius budget was presented under the theme ‘With the People, for the People’. The main objective of the budget was to consolidate economic recovery and accelerate the transition of Mauritius into a sustainable and inclusive economy while maintaining fiscal stability.
The financial sector remains a key pillar of the economy with an 11% contribution to GDP. Measures announced in the budget aim at building the resilience of the sector especially in light of the exit of Mauritius from the FATF grey list and EU black list.
Main measures pertaining to the financial services sector and working and living in Mauritius are highlighted below.
FINANCIAL SERVICES SECTOR
- The Financial Services Commission will revamp its framework to enable re-insurance companies to set up operations in Mauritius
- The setting up of a Financial Crime Commission will ensure an effective coordination in the fight against financial crimes
- In order to align with OECD recommendations, Mauritius will introduce a domestic minimum top-up tax to ensure that resident companies of large multinationals are taxed at a minimum rate of 15%
- The government will adapt its legislative framework to converge the domestic and the global business regime
- “Global Headquarters Administration”, “Global Shared Services” and “Global Treasury Activities” will be removed from the scope of “financial services” under the Financial Services Act and a separate section for regulation of global activities in line with FATF requirements will be created
- The current requirement for high-net worth individuals and families shall be reviewed to a minimum portfolio of USD 5m per management family office
- Businesses will have required support for the recruitment of young talents under the young professional occupation permit
- Holders of residence permits will now be able to apply for the acquisition of a residential property for a minimum investment of USD 350,000 subject to a 10% contribution to the Solidarity Fund
- Owners of residential property acquired by more than one non-citizen under ‘fractional ownership’ shall be entitled to register for the status of residency provided that the investment by each non-citizen exceeds USD 375,000
- Holders of Global Headquarters Administration Licences will be provided work and residence permits for five executives and the latter’s dependants
- Students in completion of their studies and entrepreneurs shall benefit from the premium visa
- It will be clarified that the foreign employer of the holder of a premium visa will not, in respect of that employee, be subject to the payment of:
- corporate tax under the Income Tax Act
- social contribution under the Social Contribution and Social Benefits Act
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