A Domestic Company may be used to carry out business both in and outside Mauritius. However, where the Citizenship and Conduct of Business Tests are met, it shall be mandatory to apply for a Global Business Licence or seek authorisation to act as an Authorised Company.
The Domestic Company is governed by The Companies Act 2001.
The main tax features of a Domestic company (which is not an Authorised Company) are as follows:
- Access to the extensive network of Double Taxation Avoidance Agreements (DTAAs) which Mauritius has with other countries;
- Headline rate of tax at 15% but may be subject to exemptions, tax holidays or other reductions in tax rate as a result of the activity;
- Eligible to the partial exemption regime under which 80% of the certain income are exempted from income tax;
- Eligible to underlying tax credit on dividends if shareholding in the company paying the dividend is directly or indirectly greater than 5%;
- Eligible for tax sparing benefits;
- No thin capitalization rules, earning stripping and controlled foreign company regulations;
- Exempted from capital gains tax in Mauritius.