In recent changes Mauritius has put in place safeguards for global business companies to minimize the perception that the country is used as a route for avoiding taxes for foreign investments into India.
Mauritius Strengthens Substance Requirements
Update from Nair & Co. International Expansion Services Team
(Bristol, UK) - In recent changes Mauritius has put in place safeguards for global business companies to minimize
the perception that the country is used as a route for avoiding taxes for foreign investments into India. This move
also comes in order help build status as a preferred global financial centre.
Mauritius has introduced 'greater substance requirements' for global business companies. This would ensure that
such companies have substantial presence in the country, and that such companies do not use the jurisdiction as a
mere 'proxy address' to benefit from tax treaties.
Most foreign companies operating in the region use the Global Business Category 1 (GBC-1) channel to make
investments in India and other countries via Mauritius. The new requirements may give rise to increased economic
activity between these companies and the local economy.
Mauritius has also agreed to include 'limitation of benefits’ (LOB) rules in the tax treaty with India, and finalized
Tax Information and Exchange Agreement (TIEA).
For more information about doing business overseas or to know more about our international tax and compliance
services please contact us.
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