Mauritius: Mauritius Budget 2025-2026 - Key Tax Reforms to Watch

On Thursday 5 June 2025, the Prime Minister and Minister of Finance, Dr. the Hon. Navinchandra Ramgoolam, presented the 2025/26 National Budget to the National Assembly. Below is a summary of the key measures announced: 

Qualified Domestic Minimum Top-Up Tax (QDMTT) 

In line with OECD's Global Anti-Base Erosion rules under Pillar Two, Mauritius has announced the implementation of QDMTT provisions effective 1 July 2025, to ensure that constituent entities of multinational groups having annual consolidated revenue of EUR 750 million or more pay a minimum effective tax rate of 15% locally.  It is expected that details pertaining to the working and implementation of the QDMTT will be released through regulations subsequently. 

Alternative Minimum Tax (AMT) 

An Alternative Minimum Tax (AMT) regime is being introduced for companies operating in specific sectors, namely hotels, insurance, financial intermediation, real estate, and telecommunications.  Under the AMT rules, the impacted companies will be required to pay a minimum tax of 10% on book profits - adjusted for capital gains/losses and domestic dividends - if their regular tax liability is lower than this threshold. Notably, companies holding a Global Business Licence (GBL) or enjoying tax holidays are excluded, but no tax credits (e.g., foreign tax credits) can be utilized to offset against the liability to the AMT. 

Fair Share Contribution – Corporates and Banks 

A Fair Share Contribution (FSC) will be levied on companies and banks having annual chargeable income above Rs 24 million (approximately USD 530,000) as follows: 

• 5% of chargeable income for those taxed at the standard 15% rate, 

• 2% for those enjoying a reduced tax rate (e.g., 3%), 

• 5% on banks’ income, including transactions with non-residents and holders of GBLs, 

• An additional 2.5% on banks’ domestic income only. 

The FSC will apply for a three-year period from 1 July 2025 to 30 June 2028. However, companies holding a Global Business Licence or enjoying tax holidays are excluded, and no tax credits (e.g., foreign tax credits) can be utilized to offset liability to the FSC. 

Fair Share Contribution – Individuals 

High-income earners deriving over Rs 12 million (approx. USD 265,000) annually, inclusive of local dividends, will be subject to a 15% FSC on their chargeable income, inclusive of local dividend income, in excess of Rs 12 million. The FSC for individuals will also be applied for a limited duration of three years, starting 1 July 2025. 

Reform of Personal Income Tax Bands 

As from the income year starting 1st July 2025, the following income tax rates and tax bands will be applicable for individuals:  

The above measures are based on the Budget Speech presented on 5 June 2025 and may be subject to change or further clarification based on the Finance (Miscellaneous Provisions) Bill to be introduced in the National Assembly. 

If you wish to discuss these topics, please contact: 

WTS Tax Consulting (Mauritius) Ltd.