Investment Incentives

Export Enterprise Scheme ( EPZ )

The Export Enterprise Certificate (EPZ) is granted to export-oriented enterprises. However, these companies are authorised to sell up to 20% of their production on the local market.

Export Enterprise Incentives

• Corporate tax of 15%
• Duty-free import of raw materials and equipment
• Tax free dividends
• No capital gains tax
• Free repatriation of profits, dividends and capital
• 60% remission of customs duties on buses of 15-25 seats used for the transport of workers
• Cocessionary registration fee for the purchase of land and
• buildings by new industrial enterprises.
• 50 % relief on personal income tax for 2 expatriate staff for a period of four years

Pioneer Status Enterprise Scheme

This scheme aims at encouraging the transfer of technology for the creation of new support industries for the high value-added sector, for the development of priority sectors and for pioneer services. Enterprises operating under this scheme can export as well as sell their services on the domestic market without any restriction, subject to the payment of 15 % VAT, as applicable in Mauritius.

Incentives

15% corporate tax exemption from customs duty on scheduled equipment or raw materials
Tax free dividends
Free repatriation of profits, dividends and capital

Strategic Local Enterprise Scheme

This scheme is intended for local manufacturing enterprises, which contribute to the economic, industrial and technological development of the country.

Incentives

• 15% corporate tax
• No tax on dividends

Modernisation and Expansion Scheme

This scheme aims at accelerating the modernisation, expansion and diversification of existing manufacturing enterprises by encouraging them to invest in modern equipment, computerisation and pollution control technology

Incentives

• No customs duty on production equipment
• Income Tax credit of 10% (spread over 3 years) of investment in new plant and machinery, provided at least Rs. 10 million are spent within two years of date of issue of certificate. This is in addition to existing capital allowances, which amount to 125% of capital expenditures
• An additional allowance of 30% over the normal initial allowance of 50% on investment made on anti-pollution machinery or plant

Incentives for Spinning

An attractive tailor-made package of incentives is in fact offered to spinning units in Mauritius:

• A ten-year tax holiday for spinning companies starting operation before 30 June 2006
  
• Any unrelieved loss (after deduction of profits) incurred by a spinning company during the period of exemption shall be available for carry forward under section 59 of the Income Tax Act
  
• Investors subscribing at least 20% to the share capital of a spinning company, or over Rs. 60 million (whichever is the higher), will be granted a special investment tax credit. They may opt to deduct from their tax payable, 15% of the amount so invested per annum over 4 years or 10% over 6 years. The tax credit will be made available to the investing company right from the year the investment is made and not in the subsequent year as is usually the case
  
• Any unrelieved special tax credit may be carried forward for a period of five consecutive income years following the year the investment is made. The deduction allowed in respect of the special tax credit shall be withdrawn if the spinning company has not started operations by 30 June 2006
  
• Land at very concessionary rates
  
• 5% registration duty on purchase of land and buildings for industrial purposes
  
• Possibility of equity participation up to a maximum of Rs 100 mn in the share capital of spinning units by the National Equity Fund.
  
• Duty remission on construction materials
  
• No customs duty and VAT on raw materials and equipment
  
• No tax on dividends
  
• No capital gains tax
  
• Free repatriation of profits, dividends and capital
  
• 60% remission of customs duties on the purchase of buses of 15-25 seats used for the transportation of workers
  
• 50% relief on personal income tax for two expatriate staff
  
• Concessionary Electricity rates
  
• Duty remission on the import of two cars (maximum duty remission of Rs 500,000 per car) provided the initial investment exceeds Rs 50 million or the project creates at least 200 jobs for Mauritian workers.
  

Source: The Board of Investment, Mauritius