Mauritius Growing As An Investment Hub Due To Tax-Friendly Government
The island nation of Mauritius is now being considered a "Safe and Reliable Investment Hub," due to its good governance and social, political, ethical and economic stability. It's current status has also landed it the top spot in the World Bank's Doing Business Report 2013 for Sub-Saharan Africa.
Both individual and corporate foreign investors are being drawn to the country for many reasons, including a qualified workforce, strategic geographical location, free zones, free ports, and a favorable and fair taxation system. Other factors include a qualified workforce, free-trade economy, and its strategic geographical location. But one of the top reasons why Mauritius is becoming so popular in attracting this foreign investment is the fact that the island is at the forefront of tax-friendly countries.
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Tim Taylor, Chairman of Cim Group, is a major player in the financial sector of Mauritius concerning management of foreign investment funds. Recently, he stated in an interview with Luxury Mauritius Magazine, that "Mauritius has developed its trust laws and today high-net worth individuals can create a trust or a fund into which they can transfer some of their assets. Such structures can be used for the better management of inheritance tax and may also be used by expatriates. Moreover, all back-office and administrative services are much cheaper here and fiscal policy is favorable. Tax is a cost!"
Mauritius has actually positioned itself as a regional investment hub, plus it has signed around 40 double taxation treaties modeled on the OECD, thus ensuring lower rates of taxation on interest, dividends, and royalties. Authorities implemented a low-rate taxation system which is aimed at encouraging local and foreign companies to set up in the island. The key fiscal advantages of this system include absence of inheritance tax, refundable Value-Added Tax at 15 percent, and no tax on short-term appreciation.
By offering a lively community of business men and women, the country has achieved one of the fastest growth rates in Sub-Saharan Africa. Positioning itself as a regional investment hub, the country has signed some 40 double taxation treaties modeled on the OECD. Therefore, investors are looking at lower rates of taxation on dividends, interest and royalties.