In a correspondence dated 17 January 2022, the Financial Services Commission (FSC) confirmed that, effective 1 January 2022, only holders of / applicants for a Global Business Licence (GBL) wishing to avail of a preferential tax advantage should demonstrate that their Core Income Generating Activities (CIGA) are / will be carried out, in or from Mauritius at all times. Therefore, only Global Business Companies (GBCs) wishing to benefit from the Partial Exemption Regime (PER) which entitles them to an exemption of 80% on certain streams of income such as interest received by GBCs or the income derived by GBCs on certain activities which are licensed and regulated by the FSC etc.1, are required to demonstrate their CIGA in Mauritius. This is a welcomed development for the global business industry and a relief for GBCs for which preferential tax advantages are not available or applicable. Previously, there was uncertainty on whether meeting the CIGA requirements was a condition attached to the licence of GBCs or if this was part of the substance requirements only for GBCs wishing to avail of preferential tax advantages. It is noteworthy to mention that all GBCs can still claim tax credit in Mauritius for any tax suffered on foreign sourced income as an alternative to claiming benefit under the PER. Regardless of the above, the FSC and the tax authorities will still require GBCs to be managed and controlled in Mauritius to ascertain their tax residence, which will then enable them to take advantage of the various tax treaty benefits that are available to tax resident vehicles. To access the correspondence dated 17 January 2022 issued by the FSC, please click Here Our specialized tax team will be able to provide guidance on the applicability of the available preferential tax advantages to GBCs whilst identifying and advising on any gaps in relation to economic substance. We can also assist our clients in the implementation of their CIGA requirements through the provision of serviced office space and the fulfilment of their direct and/or indirect employment endeavours. For more information on how we can assist, please write to us on info@intercontinentaltrust.com | Your Data Privacy, Our Concern As you are aware, we hold your contact details on our database and have been sending you regular newsletters and updates about the latest developments in the Mauritius financial landscape and other areas of interest. Since the introduction of the new data protection regulations (EU GDPR & the Mauritius Data Protection Act 2017), we now require your consent to hold your personal data. Please click here to confirm that you still want to hear from us and get the latest news about the Mauritius International Financial Centre. Should you wish to opt out of our future e-mail communications, please click here to stop receiving correspondence from ITL. Alternatively, you may use the unsubscribe button at the bottom of all our communications or send us an e-mail at unews@intercontinentaltrust.com Data security and protection is of prime importance to us and we invite you to read our privacy notice which provides information about how we manage and process your personal information. We are only a phone call or an e-mail away. If you have any comments, questions or concerns about any of the information in our privacy notice, or any issues relating to the processing of personal data by ITL, please contact your regular contact person at ITL or write to us on dpo@intercontinentaltrust.com | | DISCLAIMER The information in this e-newsletter was prepared by Intercontinental Trust Limited to provide potential clients with a broad overview of the opportunities available in Mauritius. While all reasonable care has been taken in the preparation of this e-newsletter, Intercontinental Trust Limited accepts no responsibility for any errors it may contain, whether caused by negligence or otherwise, or for any loss, however caused, sustained by any person that relies on it. Readers are advised to consult with appropriate, qualified professional advisors before taking action. Intercontinental Trust Limited will be pleased to discuss any specific issues. |
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