The declaration was made in recognition of the fact that in recent years Mauritius has implemented a range of reforms to its system of taxation to bring it into line with international standards. The reforms* have resulted in the implementation of greater transparency and the cessation of any tax practices that were considered to be harmful. The changes include the introduction of substance requirements and the introduction of CFC anti-avoidance rules which in broad terms follow the EU anti-avoidance directive.
All the necessary reforms to comply with the EU principles of tax good governance were implemented ahead of the planned schedule and in accordance with the commitments made by the jurisdiction.
In addition, Mauritius has fully implemented the OECD minimum BEPS requirements (Base Erosion and Profits Shifting).
As a result, Mauritius, together with Switzerland, has been removed from the EU Grey List.
The OECD has upgraded Mauritius’ rating to a ‘Compliant’ jurisdiction.
It is reported that the Chief Executive of the Mauritius FSC, Mr Harvesh Seegolam stated:
“Mauritius as an IFC has always been at the forefront of innovation while ensuring adherence to international best standards and practices. This recognition by the EU further consolidates our position as a trusted, globally recognised and well-regulated financial centre. It comes at an opportune time as we look forward to the next level of development in line with our established 10-year plan. We look forward to continuously working in close collaboration with all stakeholders in this process.”
*Principally the contained in the Finance (Miscellaneous Provisions) Act 2019 and Income Tax (Amendment No.2) Regulations 2019.
For more information, please contact Neermal Poonie: n.poonie@rosemont.mu