News and Technicals

Revised procedures for the recommendation of Tax Residence Certificates (TRC)

Following the publication of the ‘Income Tax (Amendment) Regulations 2013 (Government Notice No 34 of 2013)’, a new regulation (reg. 20A), effective as from 17th of February 2013, was added to the Income Tax Regulations Act 1996 providing for the payment of a service fee when applying for a TRC. The service fee is payable to the Mauritius Revenue Authority. The services fee is USD 1,000 for Collective Investment Schemes, and USD 200 for other applicants.

The Economic & Financial Measures (Miscellaneous Provisions) Act 2012

In order to promote the setting up of ‘Global Headquarters’ and ‘Treasury’ companies in the global business sector, the Economic & Financial Measures (Miscellaneous Provisions) Act 2012, has repealed section 73 (3) of the Financial Services Act 2007 to allow for companies conducting those activities to be set up in Mauritius.

A corporation holding a ‘Global Headquarters administration’ licence or a ‘Global Treasury Activities’ licence, and providing at least three of the services listed below to three of its related corporations, shall accordingly benefit from a ‘Global Business’ licence.

Global Treasury Activities

  • Arranging for credit facilities, including credit facilities with funds obtained from financial institutions in Mauritius or from surpluses of network companies
  • Arranging for derivatives
  • Corporate finance advisory
  • Credit administration & control
  • Factoring, forfeiting and re-invoicing activities
  • Guarantees, performance bonds, stand-by letters of credit, and services relating to remittances
  • Management of funds for designated investments
  • Any other global treasury activity as may be specified in the FSC Rules

 

 Global Headquarters Administration

  • Administration & general management
  • Business planning, development and coordination
  • Economic and investment research & analysis
  • Services relating to international corporate headquarters in Mauritius
  • Any other global headquarters administration services as may be specified in the FSC Rules.

 

The Financial Services Commission (FSC) circular letter and FAQs on Directorship

The FSC has issued a Circular Letter and list of FAQs on Directorship to remind directors, all its licensees and reporting issuers of their duties and obligations in accordance to the law. This communication is in line with provisions of the Economic and Financial Measures (Miscellaneous Provisions) Act 2012, whereby the Financial Services Act 2007 was amended to enable the Chief Executive to direct any person to comply with any of the principles and practices of corporate governance as laid out in the Code of Corporate Governance issued under the Financial Reporting Act.

Circular Letter

FAQs

The Financial Services (consolidated) Licensing Amendment Rules 2013

The Financial Services (Consolidated Licensing and Fees) (Amendment No. 2) Rules 2013 provides for a new flat fee structure, plus an amount based on the number of Category 1 Global Business Corporations and Category 2 Global Business Corporations under management by a Management Company (MC). There are also additional fees for MC’s offering Trusteeship services. It should be noted that the aggregate annual fee applicable for a MC licence shall not exceed USD 20,000 for any particular year. This new fee structure will be effective as from 1st of July 2013.

Global business companies conducting business in Mauritius

On 28 February 2014, the FSC has made amendments to the Guide to Global Business in order to provide greater flexibility for Category 1 Global Business Companies (GBC1s) to conduct business in Mauritius.

 Below is a summary of the amendments;\A holder of a GBL1 does not need to seek the prior approval of the FSC before conducting business in Mauritius provided that it comply with certain restrictions, terms and conditions, for eg;

1. For instance a GBC1 engaged in the trading of food stuff can sell its products on the local market, provided  that it complies with other relevant laws of Mauritius, in this case, the Food Act 1998 (etc) and further that it is able to demonstrate that most of its business is being carried out outside Mauritius.

Furthermore, the GBC1 is required to submit every year, together with its audited financial statements:

(a) a report signed by the directors certifying that the Company has complied with all the provisions of the FSA and any Regulations, FSC Rules and guidelines issued under it; and

(b) a certificate from its auditor confirming the percentage of the business conducted in Mauritius.A holder of a Category 2 Global Business Licence (GBC2) can subject to the prior approval of the FSC conduct business in Mauritius

2. In considering whether to allow the GBC2 to conduct business in Mauritius, the FSC will consider whether the proposed activity will have:

  • strong economic impact in Mauritius, i.e., whether the activity  will generate revenue in Mauritius, and is likely to create employment in Mauritius or may impact on the development of the country.

 

Circular Letter

FAQs