The Minister of Finance, Renganaden Padayachy, presented the 2024-2025 National Budget under the theme "Tomorrow belongs to us". This budget aims to improve the business environment and expand the financial services sector, which grew by 4.4% in 2023.
Rosemont takes a look at the key points of this new budget:
Rosemont takes a look at the key points of this new budget:
Tax measures
- Income Tax and Partial Exemption Scheme
- Extension of exemptions to virtual assets and virtual tokens.
- Inclusion of Payment Intermediary Services (PIS) licensees and artificial intelligence and robotics companies in the Partial Exemption Scheme.
- The 80% partial exemption for an authorised closed-end fund will be extended to income from the sale of money market instruments or debt instruments.
- The 80% partial exemption for CIS directors will not apply to income from the provision of administrative services by a management company to a CIS licensee.
- Introduction of a Corporate Climate Responsibility (CCR) levy of 2% of profits.
- Value Added Tax (VAT)
- VAT exemption for certain services provided by management companies to non-resident trusts and foundations.
- Other tax measures
- Tax and Contribution Arrears Settlement Scheme with full remission of penalties until June 2025.
- Miscellaneous amendments to improve transparency and tax efficiency :
- Adjustment of publication deadlines for company names,
- Inability to submit an amended declaration in the event of an objection lodged with the MRA,
- Clarification on the application of the 8-year exemption for captive insurance,
- The fund and asset manager certificate must include at least 2 qualified agents
Business Facilitation
- Financial Services Commission (FSC)
- Rationalisation of licences with a 10 working day deadline.
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- Introduction of a mechanism to reduce response times, and a processing time for certain licences.
- Economic Development Board (EDB)
- Working with various authorities to double electronic licences in three years.
- Business and Company Registration Department (CBRD)
- 24/7 information centre.
Banking sector
- MAUCAS platform
- Abolition of fees to encourage digital payments.
- Banking Law
- Amendments to revise the procedures for appointing audit firms and to strengthen the independence of the Bank of Mauritius.
- Introduction of portability of bank accounts
Legislative amendments
- Financial Services, Insurance and Pensions Legislation
- Amendments to allow the FSC to charge post-licensing fees and increase processing fees.
- Company Law
- Various adjustments to improve transparency and efficiency.
- the Companies Act will be amended to require a global business corporation (GBC) to obtain a no objection from the Financial Services Commission (FSC) prior to its removal from the Register of Companies.
- Financial Reporting Act
- Exclusion of authorised companies from the definition of public interest entities and other adjustments.
- Law on National Payment Systems
- Providing to the BOM the flexibility to designate which instruments qualify as payment instruments under the National Payment Systems Act and to ensure alignment with the Virtual Asset and Initial Token Offering Services Act.
- Law on Virtual Asset Services and Initial Token Offerings
- The VAITOS Act will be amended to impose a statutory obligation on a VASP to appoint a Senior Executive at all times, duly approved by the FSC.
- Workers' Rights Act
- Protect employees on maternity/paternity leave and provide for flexible working arrangements.
- Deed of Declaration of Assets
- The amendments include defining "liabilities" and aligning the meaning of "unexplained wealth" with the Financial Crimes Commission Act.
- Effective Change of Ownership of a Company
- An effective change in the ownership of a company will be deemed to have taken place when there is a change of more than 10% in its shareholding.
Mauritius International Financial Centre
- Working with India and African countries
- Discussions to develop the financial sector and signature of a Strategic Partnership Agreement (SPA).
- Roadmap for the Financial Services Sector
- Review of the roadmap for the development of Mauritius as a Fintech Hub.
- Fund Scheme
- Revision of the Funds Regime to make the jurisdiction more attractive.
- E-KYC
- Extension of centralised electronic KYC to the global business sector.
Human Capital
- Occupation permit
- Reduction in the threshold for professionals, introduction of a 3-month temporary permit and a 10-year Expert Occupation Permit.
- Authorisation for non-citizens holding a Retired Residence Permit to work without an additional permit.
This summary covers the key points of the National Budget 2024-2025, aimed at stimulating the Mauritian economy and strengthening the financial services sector.
For more information, please contact office@rosemont.mu