The law is being amended to expand the scope for corporations holding Category 1 Global Business License to extend their operations to the domestic economy. They will be allowed to conduct business both inside and outside Mauritius instead of outside Mauritius only. For their foreign operations they will continue to benefit from foreign tax credits while for their domestic operations they will pay the same tax as other domestic corporate entities. This fundamental shift in policy should 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.
This framework will also encourage Regional Headquarters incorporation and activities in Mauritius.
The Trust Act is being amended to apply the rule of perpetuity to allow unlimited duration of non-charitable purpose trusts.
A new economic diplomacy initiative will be used to position Mauritius as the preferred gateway for investment into Africa, particularly from India and China.
To rebalance growth in the sector there is the need to further strengthen the institutional set up and the regulatory framework. Greater coherence must be ensured in supervision, regulation, policy formulation and implementation. The stability that has been the hallmark of the Mauritius financial system through the global financial turmoil must be further strengthened. Advice from international experts will be sought on the merging of the Bank of Mauritius (BoM) and the Financial Services Commission (FSC) into one single regulatory institution.
In addition, the role of the Board of Investment (BoI) and the FSC as a promoter and regulator respectively will be clearly defined . Policy matters will rest with the Minister of Finance.
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