https://vokasi.uki.ac.id/https://geoportal.palembang.go.id/https://pria.org/https://rsudsidoarjobarat.sidoarjokab.go.id/https://empowerment.co.id/https://newepaper.jawapos.co.id/thumbnail/dist/https://rskiasawojajar.co.id/https://bantenheadline.com/wp-includes/files/https://en.unib.ac.id/https://icrcnewsroom.org/https://satvika.co.id/https://baritoutarakab.go.id/https://pgsd.fkip.unsulbar.ac.id/https://pafiaekkanopan.org/https://lpmpp.unib.ac.id/
Mauritius Finance Act 2020

Mauritius Finance Act 2020

11/09/2020
The global Covid-19 pandemic has given rise to series of “abnormal measures” put in place by governments throughout the world at least for the next few years. Mauritius is no exception! 
The Mauritius Finance Act 2020 aims to  raise  more funds for the Government whilst trying to preserve livelihoods. The results of this will be followed carefully as their effects are mostly yet to be seen. 

Whilst the Finance bill 2020 has been the subject of lively debates over certain announced and proposed changes such as the solidarity tax on companies with a turnover of more than MUR 500m and the 40% solidarity levy for individuals, tweaks have in fact been made to the Act. Dividends for instance are now taxed at 10% and the solidarity levy is at 25%.  Let us see the salient points of the Act:
 
  1. Effective as from 1  September 2020, the existing National Pension Fund will be replaced by the Contribution Sociale Généralisée (CSG).
  2. The Act has increased the rate of solidarity levy applicable to individuals from 5% to 25% and has reduced the threshold of the leviable income from MUR 3.5 million (approx. USD 87,500) to MUR 3 million (approx. USD 75 000)
  3. Introduction of digital banking business and a digital banking licence.
  4. The Bank of Mauritius (BoM) is empowered to issue digital currency.
  5. Non-Citizens (Employment Restriction) Act - The scope for non-citizens to be employed without a permit has been extended to a holder of a residence permit under the Immigration Act and to a member of the Mauritian Diaspora under the Mauritian Diaspora Scheme prescribed under the Economic Development Board Act 2017.
  6. Tax Holidays of eight years on the below mentioned income:
    1. Income derived from inland aquaculture in  Mauritius by a company which has started its operations on or after 4 June 2020;
    2. Income derived by a company which has started its operations on or after 4 June 2020 and approved by the Higher Education Commission as a branch campus of an institution which ranks among the first 500 tertiary institutions worldwide; and
    3. Income derived from the manufacturing of nutraceutical products by a company which has started its operations on or after 4 June 2020.
  7. The auditors will now under this new Act have a duty of reporting to the FSC on any matter which gives the auditor reasonable grounds to believe that:
    1. there has been a material adverse change in the risks inherent in the business of the licensee with the potential to jeopardise the ability of the licensee to continue as a going concern;
    2. the licensee may be in contravention of the FSA or any regulations made under the FSA, FSC Rules or any directions issued by the FSC;
    3. a financial crime has been, is being or is likely to be committed;
    4. serious irregularities have occurred, or
    5. there has been non-compliance with the laws of Mauritius.
  8. Changes to the Immigration Act-
    1. Non-citizen holding immovable property under the Integrated Resort Scheme, Invest Hotel Scheme, property Development Scheme or Smart City Scheme whose value is not less than USD 375 000 will have the status of resident;
    2. Parents of holders of a valid residence or occupation permit and having granted the status of permanent resident and non-citizens coming to serve the Government under the Service to Mauritius Programme for a period not exceeding three years, will have the status of resident. This is a new addition to the laws;
    3. A person who invests at least USD 375 000 or an equivalent amount in the specified activities of the Schedule of the IA which include agro-based industry, education, initial public offering will now be able to apply for the status of permanent resident;
    4. Any investor or self-employed non-citizen who is a holder of an occupation permit or any retired noncitizen who is a holder of a residence permit may apply for the status of permanent resident within the 10-year occupation or resident permit period;
    5. The validity of a permanent residence permit has been extended to 20 years;
    6. The holder of an occupation permit under category professional may hold shares in a business where he is employed provided that he is not a majority shareholder.
It is felt that the direct and indirect positive effect of the Act will take time to have a “real impact” on the economy during this current global pandemic.

For more information on the changes brought to the Finance Act 2020, please contact us at n.poonie@rosemont.mu