Mauritius: Proposed tax measures in budget 2026-2027
Corporate income tax, individual tax, VAT, and administrative measures
july 7, 2026
The 2026-2027 budget includes changes that would affect businesses across multiple sectors and cover areas including corporate income tax, individual tax, VAT, and tax administration.
Key tax proposals include:
- Introduction of a new 35% tax rate band for chargeable income above MU₨12 million, which would replace the fair share contribution (FSC) and remove economic double taxation on local dividends, with no sunset clause announced for the new band rate
- Restriction on offsetting foreign tax credits against the corporate climate responsibility (CCR) levy, subject to any income tax treaty
- Pension reform to replace the Contribution Sociale Généralisée (CSG) and the Portable Retirement Gratuity Fund (PRGF) with a new National Pensions Fund (NPF), which would lower contributions for high-income earners
- Introduction of a Golden Visa Scheme requiring a US$1 million investment, which would provide an income tax exemption and access to permanent residence in Mauritius to attract high-net-worth individuals (HNWIs)
- Limitation of tax liability for a company's unpaid taxes to executive directors, providing greater certainty on liability to tax
- Removal of the VAT registration requirement for foreign suppliers of digital services when the customer is VAT-registered, reducing the compliance burden
- Taxation of nonresident information and communications technology (ICT) companies providing services to Mauritian customers, subject to any income tax treaty, which would create registration and tax filing obligations in Mauritius
- Transition of VAT on services provided by management companies from zero-rated to VAT-exempt, which could potentially increase VAT costs for management companies
Read a June 2026 report prepared by the KPMG member firm in Mauritius