Mauritius’ National Budget 2025-26 presented by the prime minister on 5 June 2025 outlines an ambitious strategy for Mauritius to tackle various economic challenges. It lays out a structured framework anchored on economic renewal, social order and fiscal consolidation that acknowledges the need for systemic change. The main tax proposals in the budget are as follows:
Gilbert Seeyave
BDO in Mauritius
- A qualified domestic minimum top-up tax will apply to resident parent companies or subsidiaries of large multinational enterprises, ensuring a minimum effective tax rate of 15%. Appropriate safeguards will be introduced to maintain the competitiveness of Mauritius as an International Financial Services Centre.
- An alternative minimum tax (AMT) will be introduced on certain companies operating in the hotel, insurance, financial intermediation, real estate and telecommunication sectors. The AMT—which will be 10% of book profits (in lieu of the normal corporate tax)—will be due by companies whose total tax payable after taking all available deductions but before claiming tax credits is less than 10% of book profits. Exemptions from the AMT will be available for companies with a Global Business Licence and those benefiting from a tax holiday.
- Businesses will be required to register for VAT when their turnover of taxable supplies exceeds MUR 3 million, down from the current threshold of MUR 6 million.
- Specified digital or electronic services provided by foreign suppliers will become subject to VAT, enhancing tax equity and digital economy compliance.
- The e-invoicing system will be progressively extended to suppliers exceeding an annual turnover of MUR 80 million, bringing a wider segment of large businesses within the scope of real-time invoice reporting.
Gilbert Seeyave
BDO in Mauritius