Finance miscellaneous provisions act mauritius new changes

The Finance Miscellaneous Provisions Act (FMPA) is a legislation in Mauritius that provides for various financial and administrative matters. The Act has undergone several changes over the years, and here are some of the new changes:

Recent Amendments (2020)

  1. Taxation of Digital Economy: The FMPA has introduced a new tax regime for digital economy, including e-commerce, online services, and digital transactions. The Act provides for a 15% tax on digital transactions, effective from January 1, 2020.
  2. Withholding Tax on Interest and Dividends: The Act has introduced a withholding tax of 15% on interest and dividends paid to non-resident persons, effective from January 1, 2020.
  3. Tax on Cryptocurrencies: The FMPA has introduced a tax on cryptocurrencies, including Bitcoin, effective from January 1, 2020. The tax rate is 15% on the gain made from the sale of cryptocurrencies.
  4. Amendments to the Stamp Duty Act: The FMPA has amended the Stamp Duty Act to increase the stamp duty rates on certain transactions, including property transfers and share transfers.

Previous Amendments (2019)

  1. Introduction of a New Tax Regime for Non-Resident Individuals: The FMPA introduced a new tax regime for non-resident individuals, effective from January 1, 2019. The regime provides for a tax rate of 15% on income earned in Mauritius.
  2. Amendments to the Value-Added Tax (VAT) Act: The FMPA amended the VAT Act to increase the VAT rate from 12.5% to 15%, effective from January 1, 2019.
  3. Introduction of a New Tax Regime for Trusts: The FMPA introduced a new tax regime for trusts, effective from January 1, 2019. The regime provides for a tax rate of 15% on income earned by trusts.

Key Provisions

  1. Tax Residency: The FMPA defines a tax resident as an individual who is physically present in Mauritius for at least 183 days in a calendar year.
  2. Taxation of Foreign-Sourced Income: The Act provides for the taxation of foreign-sourced income, including dividends, interest, and royalties.
  3. Tax Credits: The FMPA allows for tax credits to be claimed by taxpayers for taxes paid in other countries.
  4. Tax Audits: The Act provides for tax audits to be conducted by the Mauritius Revenue Authority (MRA) to ensure compliance with tax laws.

Conclusion

The Finance Miscellaneous Provisions Act is a significant piece of legislation in Mauritius that provides for various financial and administrative matters. The Act has undergone several changes over the years, and taxpayers should ensure that they comply with the new provisions to avoid any penalties or fines.