Trusts as Financial Institutions (FIs)
A trust qualifies as an FI, specifically an “Investment Entity”, if it is professionally managed and earns predominantly financial income. For example, a trust with a Mauritius-regulated trust company as trustee and holding investments typically qualifies.
If a trust is an FI and has a trustee that is a Reporting FI, it may be treated as a Trustee-Documented Trust (TDT). In this case, the trust is a Non-Reporting FI, and the trustee performs all CRS due diligence and reporting on its behalf. This classification is recognized in Mauritius’ CRS guidance and by local financial institutions.
For CRS purposes, a trust is considered Mauritius-resident if it is administered locally and has a majority of Mauritius-resident trustees (or if the settlor was resident at creation). Notably, electing tax non-residency does not exempt a trust from CRS if it otherwise qualifies as a Reporting FI.
FI trusts (including TDTs) must report financial account holders—defined as those holding equity interests in the trust. This includes the settlor(s), trustee(s), protector(s), beneficiaries (or classes), and any individual with ultimate effective control. The trust (or its trustee) submits this data annually to the Mauritius Revenue Authority (MRA), which exchanges it with the tax authorities of each reportable person’s country of residence.
If a trust is an FI, banks and other FIs where it holds accounts do not report on it. The trust is responsible for its own CRS obligations via its trustee.
Trusts as passive NFEs
Trusts that do not meet the FI criteria are NFEs—usually Passive NFEs—since they typically derive passive income and are not actively trading. These trusts do not register or report under CRS themselves. Instead, any Reporting FI where the trust holds accounts (e.g., a bank) must identify and report the trust’s Controlling Persons.
For Passive NFEs, the CRS requires FIs to determine and report each Controlling Person who is tax-resident in a reportable jurisdiction. This includes the settlor, trustees, protector, beneficiaries (including discretionary), and any individual exercising ultimate control. The trust’s account details and the information of each reportable person are sent to the MRA by the Reporting FI.
Who are controlling persons?
Whether a trust is an FI or a Passive NFE, the same individuals are ultimately disclosed. CRS defines Controlling Persons in line with FATF “beneficial owner” principles, covering:
- Settlor(s)
- Trustee(s)
- Protector(s), if any
- Beneficiaries or classes
- Any natural person with ultimate effective control
Where an entity acts as trustee or protector, CRS due diligence must “look through” to identify the controlling individuals behind that entity.
In FI trusts, these persons are classified as equity interest holders and reported by the trustee. In Passive NFE trusts, they are reported by the financial institution maintaining the account.
Summary
| Classification | Who Reports | Who Is Reported |
| FI (e.g., TDT) | Trustee | Settlors, beneficiaries, etc. |
| Passive NFE | Bank / FI | Same Controlling Persons as above |
Ensuring correct classification affects who bears reporting responsibility. Trustees must carefully assess whether the trust qualifies as an FI and whether TDT treatment applies. Improper classification or failure to report can expose trustees or account holders to non-compliance risks.
How Rosemont can help
Rosemont Management (Mauritius) Ltd assists clients in trust structuring, classification, and CRS compliance. Whether acting as Reporting FI trustee or supporting trustees and directors with due diligence, our team ensures trust structures meet CRS obligations efficiently and transparently.
For more information, please contact office@rosemont.mu