Mauritius Investment Incentive Schemes

Incentive schemes for a number of sectors were set up by the Industrial Expansion Act 1993. Companies benefiting from such schemes are often known as 'incentive' companies; in many cases, Mauritian companies which invest in 'incentive' companies can treat part of their investment as an expense against tax. Some of the more important schemes are as follows:

Pioneer Status Enterprise: This is aimed at 'activities involving technology and skills above the average existing in Mauritius and likely to enhance industrial and technological development'. Incentives include 15% corporate tax, exemption from customs duty and sales tax, and exemption from withholding tax.

Modernisation and Expansion Scheme: The scheme aims to accelerate the modernisation of existing enterprises; incentives include exemption from customs duty and enhanced tax credits on purchase of new equipment, particularly anti-pollution equipment.

Industrial Building Scheme: The scheme encourages the construction of industrial buildings for letting with incentives that include a 15% corporate tax rate, exemption from withholding tax, 50% exemption from land purchase dues, and the disapplication of rent controls.

Hotel Development Certificate: Incentives include 5% corporate tax, exemption from withholding tax for 10 years, exemption from customs duties, and loans at preferential rates.

The inward investment process in Mauritius can be bureaucratic, and after promising a 'one-stop-shop' for inward investors for some years, the administration finally created an integrated agency for inward investment in 2001.