|Changes to Category 1 Global Business Licence|
Previously, under Sections 71 and 73 of the Financial Services Act, a company holding a Category 1 Global Business Licence (GBC1) could only carry business outside Mauritius.
With the coming into operation of the Finance Act 2010, a GBC1 company is not prevented from (i) carrying on business in Mauritius, (ii) dealing with persons resident in Mauritius, and (iii) holding shares or other interests in a corporation which is resident in Mauritius.
This extension of activities to the domestic economy was explained by the Honourable Minister of Finance, Pravin Jugnauth, in his Budget Speech to encourage Regional Headquarters incorporation and activities in Mauritius.
For their foreign operations, these companies will continue to benefit from foreign tax credits while for their domestic operations they will pay the same tax as other domestic corporate entities.
Pravin Jugnauth explains that “this fundamental shift in policy would invigorate even further our global business sector and the domestic economy. As importantly, it will provide even more reasons why Mauritius is a jurisdiction of choice and substance.”