BUDGET HIGHLIGHTS 2018-2019 FOR THE GLOBAL BUSINESS SECTOR
The Financial Services sector, regrouping the global business, banking and non-banking activities
registered a remarkable growth of 5.5% with a GDP contribution of 11.9% which is expected to
reach 12.2% of the GDP by the end of 2018.
As at date, there are around 11,632 GBC1 structures and around 10,154 GBC 2 structures, 186
Management Companies and 989 Global Funds licensed with an asset under management
exceeding the USD 85 Million.
The recent budgetary measures clearly demonstrate the determination of the Government to
position Mauritius as an International Financial Centre of repute and a centre of excellence. In its
determination to reform the Financial Services Sector, the Government in its 2018-2019 budget
brought about the following measures for the Global Business Sector:
1. Setting up of a Steering Committee
A Steering Committee has been set up under the aegis of the Prime Minister’s Office to ensure a
timely and effective implementation of the recommendations of the Financial Services Blueprint.
This Blueprint will undoubtedly strengthen the existing dynamics of the Global Business Sector.
2. Introduction of a new harmonized fiscal regime for Domestic and Global Business
Considering the ever-increasing challenges faced by the Global Business Sector, a new
harmonized fiscal regime will be introduced for domestic and Global Business Companies and a
specific fiscal regime for banks.
3. Deemed Foreign Tax Credit
Deemed Foreign Tax Credit available to holders of a Category 1 Global Business Licence will be
abolished as from 31 December 2018.
4. Partial Exemption Regime of 80%
A Partial Exemption Regime of 80% of specified income will be introduced. This exemption will
be enjoyed by all companies in Mauritius except banks and will be applicable to the following
– Foreign source dividends and profits attributable to a foreign permanent establishment;
– Interest and Royalties;
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BUDGET HIGHLIGHTS 2018-2019 FOR THE GLOBAL
– Income from provision of specified financial services.
It is to be noted that companies who wish to benefit from this partial exemption will need to satisfy
pre-defined substantial activities requirements. Furthermore, this enhanced substance requirement
will be also applicable to Captive Insurance Companies.
However, the existing credit system for relief of double taxation will be still applicable where the
partial exemption is not available for taxes suffered on foreign income.
5. Issuance of new Category 2 Global Business Licence
No new Category 2 Global Business Licence will be issued as from January 2019 and companies
existing under this regime prior to 16 October 2017 will be phased out by 30 June 2021. This
Grandfathering provision will apply for Companies licensed prior to 16 October 2017 and will be
in force until 30 June 2021.
6. Removal of all restrictions applicable to dealings in Mauritius
All restrictions applicable for Global Business Companies dealing in Mauritius will now be
7. Enhanced substance requirements for Global Business Companies
Global Business Companies will have to demonstrate and meet the substance requirements to be
licensed by the Financial Services Commission. It further confirms the determination of the
Government to position Mauritius as an International Financial Centre of repute and a trusted and
The Financial Services Commission will be granted additional powers to ensure that licensees
maintain the licence requirements at all times and will have the powers to wind up one of its past
licensees to cater for situations where the licences have been terminated.
8. New Framework for oversight of Management Companies
A new framework will be established to govern and improve the oversight of Management
9. Enhancing Mauritius as an IFC
Mauritius will work in collaboration with OECD to position as a Regional Centre for capacity
building and best practices to combat financial malpractices. The adoption of international best
practices and transparency in disclosure requirements will increase our repute as an International
10. AML/CFT Framework
The Anti-Money Laundering/Countering Terrorism Financing will be amended to cater for
disclosure and availability of beneficial ownership information purposes. Amendments will be also
brought to harmonize and revamp with respect to the development in Fintech.
11. National Regulatory Sandbox Licence Committee
The Government will implement a National Regulatory Sandbox Licence Committee for activities
relating to Sandbox Licensing for FinTech activities. The Financial Services Commission will
collaborate with the Board of Investment to establish the appropriate framework for the issuance
of Sandbox Licences.
12. New Licences
The Financial Services Commission will create new licences to provide investors with a regulated
environment for the safe custody of digital assets and to enable digital assets exchange. The
following licences will now be issued:
– Creation of Custodian of Digital Assets Licence; and,
– Creation of the Digital Asset Marketplace Licence.
In line with the above, the Financial Services Commission will also implement guidelines on
investment in crypto currency as a digital asset and will ensure that applicants under the Fin Tech
activities have the appropriate policies and capacities in terms of cyber-security and cyberresilience.
This reaffirms the willingness of the Mauritian Government to leverage the island on new
technologies and to position Mauritius as a fintech hub.
Mauritius Office Swiss Office
Head of Department Corporate Services
AAMIL (Mauritius) Ltd
Tel.: +230 210 1000
Fax: +230 210 2000
AAMIL (Swiss) SA
Tel.: +41 22 818 6100
Fax: +41 22 818 6101