Mauritius has signed Double Taxation Avoidance Agreements (DTAAs) with over 40 countries worldwide, allowing businesses to benefit from tax efficiency and reducing the risk of double taxation. This network of treaties makes Mauritius an ideal jurisdiction for companies engaging in cross-border investments and international operations.
At Bahati, we assist clients in leveraging these agreements to optimize their tax liabilities across jurisdictions. Below is a list of countries that have signed DTAAs with Mauritius, along with key specifics of each agreement.
List of DTAA Countries
| Country | Signed Agreement | Key Features of the Agreement |
|---|---|---|
| India | In Force (1983) | Exemptions on dividends, interest, royalties, and capital gains; Treaty revision in 2016 to introduce source-based taxation for certain income types. |
| France | In Force (1980) | Exemptions on dividends and interest; relief on certain types of royalties and pensions. |
| United Kingdom | In Force (1981) | Double tax relief on income from dividends, pensions, and royalties; tax exemption on government services income. |
| China | In Force (1994) | Tax relief on dividends, interest, and royalties; reduced withholding tax rates for cross-border business activities. |
| South Africa | In Force (1997) | Exemptions on dividends and interest; specific rules for taxation of business profits and shipping/air transport. |
| Germany | In Force (2011) | Exemptions on interest and capital gains; reduced tax rates for royalties and dividends. |
| Singapore | In Force (1995) | Exemptions on business income, capital gains, and investment income; reduced withholding tax rates for dividends. |
| Malaysia | In Force (1992) | Exemptions on dividends and capital gains; double tax relief on income from business profits, shipping, and air transport. |
| Bangladesh | In Force (1990) | Tax exemptions for business profits, interest, royalties, and dividends; reduced rates for shipping and air transport. |
| United Arab Emirates | In Force (2006) | Exemptions on income from shipping, interest, royalties, and capital gains; reduced withholding tax on business income. |
| Luxembourg | In Force (1995) | Exemptions on interest, dividends, and royalties; provisions for avoidance of double taxation on business profits. |
| Kenya | In Force (2014) | Exemptions on dividends, interest, and capital gains; reduced withholding tax for certain types of cross-border business income. |
| Sri Lanka | In Force (1997) | Exemptions on dividends and business profits; reduced withholding tax on royalties and shipping income. |
| Sweden | In Force (2014) | Double taxation relief on dividends, interest, royalties; exemptions for pensions and social security payments. |
| Oman | In Force (2014) | Relief on dividends, royalties, and interest income; no withholding tax for certain income types. |
| Italy | In Force (2003) | Double tax relief on business profits, dividends, interest, and royalties. |
| Russia | In Force (1995) | Exemptions on capital gains, dividends, and business profits; withholding tax reductions on interest and royalties. |
DTAAs ensure that income earned in one jurisdiction is not taxed twice by providing tax credits or exemptions. For instance, if you earn dividends in India through a GBC managed in Mauritius, the DTAA allows you to avoid double taxation on the same income.
2. Reduced Withholding TaxesMany DTAAs reduce the withholding tax rates on income such as dividends, interest, and royalties. For example, income generated from dividends in countries like France, China, or South Africa can benefit from reduced withholding rates under the relevant DTAA.
3. Capital Gains TaxIn several cases, Mauritius-based companies are exempt from paying capital gains tax in the other contracting country. This is especially advantageous when structuring cross-border investments and business transactions.
4. Improved Cash FlowBy avoiding double taxation or lowering tax rates on cross-border income, DTAAs help businesses retain more profit and improve cash flow, especially in jurisdictions with high tax rates on foreign income.
Country-Specific DTAA DetailsFor each country, we provide a more in-depth guide to how the DTAA benefits your business, focusing on areas such as:
- Withholding Tax Rates (for dividends, interest, and royalties)
- Capital Gains Exemptions
- Tax Residency Requirements
- Treatment of Shipping and Air Transport Income
- Other Provisions (such as pensions, social security, and government service income)
If you want to learn more about a specific country’s DTAA and how it applies to your business, please contact us, and we will provide you with detailed guidance based on your needs.
At Bahati, we have extensive experience in helping businesses navigate DTAAs to reduce their tax liabilities and improve operational efficiency. Whether you are looking to expand into new markets or optimize your current international operations, our team of experts will ensure that your GBC structure is set up to maximize the benefits offered by Mauritius’ DTAA network.
- Contact Us for a consultation to explore how you can benefit from DTAAs.
- Request a Detailed DTAA Report: Fill out the form below to get a customized report on how the DTAA with your target country applies to your business activities.