Mauritius: Selected Issues

December 8, 2017

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Format: Chicago

Mauritius: Selected Issues, (USA: International Monetary Fund, 2017) accessed December 21, 2024

Summary

This paper discusses how Mauritius is currently dealing with two separate tax transparency and anti-avoidance initiatives, one by the OECD-G20 and one by the European Union. Under the BEPS initiative, Mauritius has committed to including minimum standards and possibly other BEPS-compliant features into its domestic laws and bilateral double taxation avoidance agreements (DTAs). Mauritius has been involved in intensive DTA negotiations and re-negotiations. Sixteen DTAs have been added in the past 6 years. Arguably, even more important for investors has been the favorable tax framework offering benefits that are in part being challenged. Mauritius currently has a 15 percent corporate income tax (CIT) rate and a worldwide system that taxes foreign earnings but allows for foreign tax credits (FTCs), including the contested Deemed Foreign Tax Credit. Important macrofinancial linkages between the GBC sector and the financial sector present vulnerabilities that need to be managed carefully. The GBC sector is a major provider of inexpensive funding to banks, but by nature of the GBC investment pattern, these deposits are potentially highly volatile.

Subject: Anti-avoidance rules, Asset and liability management, Competition, Excess liquidity, Financial markets, Labor, Labor markets, Monetary policy, Monetary policy frameworks, Taxes

Keywords: Anti-avoidance rules, Bank of Mauritius and IMF Staff Calculations, Competition, Competitiveness concern, CR, Excess liquidity, Global, ISCR, Labor market, Labor markets, Liquidity, Mauritius, Monetary policy frameworks, Monetary policy transmission mechanism, Pay, Productivity outcome, Quasi-judicial wage-fixing body, Tax benefit, Wage relativity

Publication Details

Pages:

38
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2017/363
Stock No:

1MUSEA2017003
ISBN:

9781484331576
ISSN:

1934-7685

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