Finance miscellaneous provisions act mauritius new changes pwc
The Finance Miscellaneous Provisions Act (FMPA) is a legislation in Mauritius that provides for various financial and economic measures to promote economic growth, stability, and development. The Act is amended periodically to reflect changes in the economic landscape and to address emerging issues.
Recently, the FMPA was amended by the Finance Miscellaneous Provisions (Amendment) Act 2020, which introduced several new changes. Here are some of the key changes:
- Taxation of Digital Economy: The amendment introduced a new tax regime for digital economy businesses, such as e-commerce platforms, online marketplaces, and digital payment services. These businesses will be required to register and obtain a tax clearance certificate from the Mauritius Revenue Authority (MRA).
- Withholding Tax on Royalties and Fees: The amendment introduced a withholding tax of 10% on royalties and fees paid to non-resident persons. This tax will be applicable on payments made on or after January 1, 2021.
- Taxation of Cryptocurrencies: The amendment introduced a new tax regime for cryptocurrencies, such as Bitcoin and Ethereum. Cryptocurrency transactions will be subject to a 15% tax on gains made from the sale or disposal of cryptocurrencies.
- Changes to the Stamp Duty Act: The amendment introduced changes to the Stamp Duty Act, which will increase the stamp duty rates on certain transactions, such as property transfers and share purchases.
- Introduction of a New Tax on Financial Institutions: The amendment introduced a new tax of 0.1% on the total assets of financial institutions, such as banks and insurance companies.
- Changes to the Value-Added Tax (VAT) Act: The amendment introduced changes to the VAT Act, which will increase the VAT rate from 15% to 15.5% on certain goods and services.
- Introduction of a New Tax on E-Waste: The amendment introduced a new tax on electronic waste (e-waste), which will be applicable on the importation and disposal of e-waste.
These changes are aimed at increasing government revenue, promoting economic growth, and addressing emerging issues in the digital economy. The amendments will come into effect on various dates, with some taking effect from January 1, 2021.
PwC Mauritius has provided guidance on the new changes and their implications for businesses and individuals. If you are affected by these changes, it is recommended that you consult with a tax professional or financial advisor to understand the implications and ensure compliance with the new tax laws.