Taxation

SC Legal advises companies, funds, groups and individuals on Mauritian tax, locally and across borders, and represents them in disputes with the Mauritius Revenue Authority (MRA). Our work covers structuring under the Income Tax Act 1995, double taxation treaties, transfer pricing and related party transactions, VAT, objections to assessments and appeals before the Revenue Tribunal and the Supreme Court.

Tax rarely stands alone in our matters. It drives the choice of vehicle in fund formation, the structure of acquisitions and the cost of restructurings, so we advise on it alongside the corporate and regulatory work.

What does the tax practice cover?

• Tax structuring of investments into and through Mauritius.
• Double taxation treaties and treaty access for Mauritian companies and funds.
• Tax residence and the substance of global business companies.
• Transfer pricing and the arm's length test for related party transactions.
• Tax aspects of mergers, acquisitions, amalgamations and reorganisations.
• VAT registration, treatment of supplies and VAT disputes.
• Land transfer tax and registration duty on property and share transactions.
• MRA audits, information requests and investigations.
• Objections to assessments and appeals before the Revenue Tribunal and the courts.
• Personal liability of directors and officers for company tax.

Structuring and double taxation treaties

Mauritius has a network of double taxation treaties with countries in Africa, Asia, Europe and the Middle East. A Mauritian company can rely on a treaty only if it is tax resident in Mauritius and can obtain a tax residence certificate from the MRA. In practice, treaty benefits now depend on real substance in Mauritius and on the anti-abuse rules in the treaties themselves and in the multilateral instrument.

We advise on whether a structure qualifies for treaty relief, on the substance it needs, and on how the position is likely to be viewed in the source country. For funds and holding companies, we work with tax advisers in the investee jurisdictions.

Transfer pricing and related party transactions

Transactions between related parties, such as intra-group loans, management fees, guarantees and transfers of assets, must be priced on arm's length terms. The MRA can adjust the profits of a company where related party terms depart from what independent parties would have agreed. We advise on the documentation that supports the pricing, on intra-group financing and on disputes about adjustments.

Tax disputes: from objection to appeal

A tax dispute in Mauritius starts with an assessment or claim from the MRA. The taxpayer objects to the MRA within the statutory time limit and on the prescribed conditions. If the objection is disallowed, the taxpayer can appeal to the Revenue Tribunal, established under the Revenue Tribunal Act 2025, and from there to the Supreme Court.

Time limits and preconditions are strict, and a missed step can end the case before the merits are heard. We manage the procedure from the first MRA letter, prepare the objection and the grounds of appeal, and represent clients before the Revenue Tribunal and the courts.

Frequently asked questions

How do I challenge a tax assessment in Mauritius?

Lodge an objection with the MRA within the statutory time limit. If the MRA disallows the objection, appeal to the Revenue Tribunal under the Revenue Tribunal Act 2025, with a further appeal to the Supreme Court. Strict deadlines and preconditions apply at each stage.

What is a tax residence certificate?

A certificate issued by the MRA confirming that a company or individual is tax resident in Mauritius. Foreign tax authorities usually require it before applying a reduced treaty rate, and the MRA checks substance before issuing it to global business companies.

Does Mauritius apply transfer pricing rules?

Yes. Transactions between related parties must be on arm's length terms, and the MRA can adjust a company's taxable profits where they are not. Intra-group loans, fees and guarantees should be priced and documented accordingly.

Can directors be personally liable for a company's taxes?

In some circumstances, yes. Mauritian tax law can make directors and officers personally liable for unpaid company tax, for example where the company is wound up or its assets are dissipated. Directors should take advice as soon as a material tax exposure appears.

Tax questions arise in most transactions. See also our pages on mergers and acquisitions, financing and funds and capital markets, or contact us.