Economic overview
Real GDP development was moderate yet consistent, averaging 3.8% during 2015–19. Development was for the most part determined by financial services, retail and wholesale trade, and data and interchanges innovation. Gross domestic product per capita inclined upward, arriving at an expected $10,200 in 2019 — the third most elevated in Africa after Equatorial Guinea and Seychelles. The economy is to a great extent administration based (76% of GDP in 2019), trailed by industry (21%) and agribusiness (3%). Total interest has been supported by solid development in family unit utilisation, while venture remained at 19% of GDP in 2019.
The spending deficiency, 3.2% of GDP in 2019, is supported prevalently from local obligation issues and continuous payment of a $500 million award from India in 2016. Financial solidification is required through expanding local asset assembly and the offer of government resources.
The current record deficiency, assessed at 6.3% of GDP in 2019, is anticipated to tight to 5.6% of GDP in 2020 and 5.2% in 2021, due to a great extent to improved fare and the travel industry profit. The current record deficiency will keep on being secured by speculation pay from seaward organisations and remote direct venture.
Main sectors of industry
The country’s core industries – tourism, financial services and business process outsourcing – rely on business and customers from abroad. The services sector alone contributed around 75% to the country’s GDP in 2019.
Agriculture
It is imagined that the region under sugar would proceed to decrease, and gainfulness would liable to go under weight from stale, or in any event, falling costs and expanding rivalry in the EU, yet that yield and benefit would be kept up because of upgrades in efficiency.
While there is a proceeding with loss of sugarcane fields of somewhere in the range of 500 hectares per year because of private and mechanical turn of events, the impact of this will be somewhat counterbalanced by a progressive increment of 5,000 hectares in the zone under water system and a further 1,000 hectares brought under development because of de-shaking. There is additionally increasing productivity due to the grouping of small planters, expanding mechanisation, progressively effective water system frameworks, the presentation of higher yielding assortments and the selection of lower cost techniques in field, production line and showcasing activities.
Manufacturing
The fast develop of the assembling business in Mauritius has been for the most part in the EPZ and dependent on fare of attire and materials to Europe, where Mauritius has appreciated free access under the Lomé Convention. In addition, with the Multi fibre Agreement (MFA) due to be eliminated by 2005, Mauritius will confront strongly expanded rivalry from minimal effort, huge volume makers. It will as needs be essential to climb market to higher worth included lines where rivalry depends more on opportune conveyance and quality than on cost. A portion of the bigger firms have embraced propelled current strategies and built up a notoriety for steady quality and solid conveyance.
It will likewise be critical to attempt to differentiate the scope of items and go into extra markets. The different estimates expected to empower internal venture will improve the odds of new enterprises being set up.
Tourism
Mauritius has impressive normal favourable circumstances as a vacation goal – wonderful coral sea shores, warm clear tidal ponds, vivid reefs, beautiful mountains, a subtropical atmosphere, a southern half of the globe area, a climate that is colourfully unique, yet sheltered and stable, and individuals who are inviting and inviting. These points of interest have been abused with appealing very much run inns with great pleasantries, immediate and dependable air administrations, productive supporting foundation and powerful advertising as an up-showcase quality goal. It is thusly barely astonishing that traveler appearances have been ascending by in excess of 8 percent a year and the travel industry has gotten one of the most powerful segments of the economy, representing 19 percent of gross fare profit and giving work legitimately and in a roundabout way to around 50,000 individuals.
Taxation in Mauritius
Corporate taxation
- Corporate income tax rate 15%
- Companies exporting goods are subject to tax at 3% on the chargeable income attributable to exports.
- Branch tax rate 15%
- Capital gains tax rate 0%
- Dividends – Mauritius does not levy withholding tax on dividends.
- Foreign tax relief – Foreign tax paid may be credited against Mauritius tax payable on the same income.
Until 30 June 2021, a company holding a Category 1 Global Business License issued prior to 16 October 2017 can claim a credit for the greater of the actual foreign tax incurred or a deemed foreign tax credit equivalent to 80% of the Mauritius tax payable, resulting in a maximum effective tax rate of 3%.
Investing in Mauritius
Mauritius is considered to be one of the most business-friendly countries in the world. Here are the main reasons to invest in Mauritius:
- Financial Stability
- Business Friendly
- Protection of assets and Double Taxation treaties
- Attractive taxation
- Treaties of double taxation with more than thirty countries, ratified and applicable
- Strategic geographical position
- Non-residents (foreign investors) are eligible for permanent resident status if its investment exceeds USD 500,000