The National Budget builds on three pillars namely, economic renewal, fiscal consolidation and a new social order. Through the National Budget, the Mauritian Government ambitions to foster economic growth, enhance social welfare, and reinforce our nation’s commitment to sustainability and innovation.
The Finance Act 2025 captures the measures of the National Budget following the Parliamentary debates towards this end.
The key highlights are shared in this article.
The new tax regime under the Income Tax Act and the new schemes under the Economic Development Act will be addressed in a separate article.
FINANCIAL SERVICES – NON BANKING SECTOR
Mauritius is set to become Africa’s gateway for financial services through the following measures:
Financial Services Act – Enhanced Powers to the FSC and New Reporting Obligations
- in order to promote a more flexible and timely resolution of regulatory breaches, the FSC’s Chief Executive must refer matters to the FSC’s Settlement Committee at a licensee’s written request and when he takes the view that the matter can be resolved by the FSC’s Settlement Committee;
- so as to foster the orderly administration of financial services, the powers of the FSC have been extended to enable the FSC either issue such directions as it deems necessary or a written direction to a licensee in the given circumstances;
- licensees must now notify the FSC when a change of shareholding, whether by an issue or transfer of shares, that goes below 5% triggers a change in control. This new obligation even extends to the scenario where shares are transferred or issued to an existing shareholder;
- licensees must also notify the FSC of an issue or transfer of shares or legal or beneficial interest to an existing shareholder even when it does not result in a change of control of the licensee;
- higher substance and control requirements and notification deadlines now apply to Global Business Corporations (‘GBC’) namely:
- a GBC must now at all times undertake its core income generating activities in or from Mauritius, be managed and controlled from Mauritius and be administered by a management company; and
- a GBC must now notify the FSC of a change of directors within a period of 7 days of a statutory obligation to do so.
- The immunity granted to persons identified under designated legislation for any act done or omission in the performance of their functions now extends to a person who assists the appointed person.
Strengthening Corporate Governance: Companies Act & Foundations Act – Beneficial Ownership Transparency
The implementation of the FATF Recommendation 24 through amendments to both the Companies Act and Foundations Act has raised the standards of the Mauritian corporate governance and AML/CLT matters.
Companies Act
It is now mandatory for every Mauritian company to observe the following obligations:
- maintain a record of its efforts to identify its beneficial owner(s) or ultimate beneficial owner;
- secure a written and signed declaration from its beneficial owner(s) or ultimate beneficial owner to confirm his status as of beneficial owner or ultimate beneficial owner.
Every company incorporated before the coming into force of this obligation must comply with these obligations by 30 June 2026.
- The beneficial owner(s) or ultimate beneficial owner of a Mauritian company must now notify the Mauritian company of a change his status either as beneficial owner(s) or ultimate beneficial owner;
Foundations Act
The Foundations Act has been amended to capture a similar obligation on a foundation as follows:
- a foundation must keep a record, in a form acceptable to the Registrar of Companies of all efforts taken to identify its beneficial owner(s) or ultimate beneficial owner;
- a foundation must secure a written and signed declaration from its beneficial owner(s) or ultimate beneficial owner to confirm his status as of beneficial owner or ultimate beneficial owner. This deadline to secure this declaration is 30 June 2026;
- The beneficial owner(s) or ultimate beneficial owner of a foundation must now notify the Mauritian company of a change his status either as beneficial owner(s) or ultimate beneficial owner.
Financial Reporting Act – Annual Report Now Due
Going a step further in raising the governance standards, the Financial Reporting Act has been amended to add a mandatory obligation on a public interest entity¹ to prepare an annual report of its affairs within 6 months of its balance sheet date in respect of the accounting period ending on the balance sheet date.
The First Schedule of the Financial Reporting Act sets out a comprehensive list of bodies that are public interest entities. Of relevance the list:
- includes a company listed on the Mauritian Stock Exchange and companies regulated by the Bank of Mauritius other than cash dealers;
- excludes a company licensed by the Financial Services Commission of Mauritius (FSC) to undertake global business activities.
- it includes specific companies licensed by the FSC such as insurance companies, captures, amongst others, (i) companies listed on the Stock Exchange of Mauritius (ii) insurance companies not being those under the Insurance Act (iii) collective investment schemes and closed-end funds under the Securities Act and (iv) CIS managers and custodians under the Securities Act
Digitalisation of Trade and E-Governance Infrastructure
Mauritius is being set up as a digital trade and logistics hub by fostering digitised trade finance and validating electronic signatures.
Bills of Exchange Act
Thus, the Bill of Exchange Act has been amended to capture the following:
- the formal introduction of the concept of the electronic bill of exchange and recognising its legal validity and enforceability so that henceforth both the paper and electronic bill of exchange can be used under our jurisdiction;
- the requirement to secure the consent of a person who uses an electronic bill of exchange;
- the requirement that an electronic bill of exchange is signed using a secure electronic signature or a digital signature;
- the requirement that a reliable method is used to indicate the date, time or place of an electronic bill of exchange; and
- the conversion of a paper bill of exchange into an electronic bill of exchange and vice-versa; and
- the requirement that an electronic bill of exchange operates within a reliable system through which it is created, indorsed, transferred and discharged.
The legislator has taken care to define the term “reliable system” as one with certain operational and constitutive characteristics namely:
Operational Characteristics
- it must meet with industry standards;
- there must be a declaration from either an accreditation or supervisory body or a voluntary scheme on its reliability;
- it must ensure the protection of data integrity;
- it must prevent unauthorised access to the system and its use;
- its operational rules must help make an assessment of its reliability;
- its hardware and software must be secure;
Functional Characteristics
- helps distinguish an original electronic bill of exchange from a copy;
- guards against an unauthorised alteration of an electronic bill of exchange;
- ensures that only those who are entitled to control the electronic bill of exchange can so do;
- permits a person authorised to control the electronic bill of exchange to do so; and
- removes the ability of a transferor to control the electronic bill of exchange unless the transferor is also the transferee.
Registration Duty Act
In an endeavour to remain competitive and attentive to developments in the international business community, the Registration Duty Act is being amended to recognise electronic signatures.
Thus, there is a statutory presumption that applies to a deed or document which has been submitted electronically to the Receiver of Registration Dues and which has been signed electronically by the parties under the Electronic Transaction Act. The presumption is to the effect that the deed or document which has been submitted meets the requirements and reproduces the contents of the original document or deed. However, there is an additional requirement that the deed or document contains a declaration by the parties that the electronic signatures comply with the Electronic Transactions Act.
FINANCIAL SERVICES – BANKING SECTOR
The Bank of Mauritius Act and the Banking Act have been amended as follows:
- Bank of Mauritius Act: a KYC institution may apply to become a participating KYC institution of the Central Accounts Registry of the Bank of Mauritius on the terms and conditions to be determined by the Bank of Mauritius.
Banking Act
New banking activities have been introduced to enable the Bank of Mauritius authorise a bank licensed exclusively to provide private banking business to now provide the following high-value assets:
- to buy, hold, store, and sell precious metals (e.g. gold, silver, platinum), either in their own name or as part of client investment portfolios;
- to provide safety vault services for clients, covering precious metals, precious and semi-precious stones, pearls, works of art, collectors’ items, and other high-value goods; and
- to open and maintain accounts denominated in gold, silver, platinum, or other precious metals.
The definition of the term ‘foreign exchange dealer’ has been widened to capture the services of within its scope foreign exchange swap transactions and any other transactions that could be construed as the buying and selling of foreign currency.
The scope and powers of a conservator and receiver for a financial institution has been widened with similar effect for both.
- insofar as a conservator is concerned, provided he has the approval of the board of directors of the Bank of Mauritius, he may offer the assets or shares of a financial institution for sale without the approval of the financial institution or any of its shareholders; and
- as regards a receiver, again provided he has the approval of the board of directors of the Bank of Mauritius he may offer the assets or shares of a financial institution for sale to the Bank of Mauritius or as security for loans from the Bank of Mauritius without the approval or consent of the financial institution or any of its shareholders.
NON-CITIZENS – OCCUPATION PERMITS, PERMANENT RESIDENCE PERMIT
In its endeavor to enable the Mauritian Government continue to attract foreign talent and investment, the Economic Development Board Act and the Immigration Act have been amended as follows:
Economic Development Board Act
Re-defining ‘Investor’ under Occupation Permits
The criteria for determining whether a person to qualifies as an ‘investor’ now accommodates a written undertaking by the person to transfer USD 500,000 from abroad into his Mauritian bank account within 60 days from the issuance of his occupation permit.
Re-defining ‘Professional’ under Permanent Residence Permit
The criteria for determining whether a person is a ‘Professional’ now requires that the person earns a monthly basic salary of at least MUR 400,000 [±USD 8,900] for a consecutive period of 5 years immediately preceding the application.
Immigration Act
The Immigration Act has been amended to enable the Director General of Immigration issue a combined work and residence permits to every non-citizen who holds a work permit and a non-citizen residence permit.
Furthermore, the application process for a residence permit for a retired non-citizen has been simplified with the effect that an application for a residence permit is now made to the Director General of Immigration through the National Electronic Licensing System (‘NELS’) together with the prescribed fee. The application is verified by the Economic Development Board together with the Passport and Immigration Office for completeness. An application which is confirmed complete as aforesaid us sent by the Economic Development Board to the Joint Committee which will examine the application and make recommendations to the Ministry of Home Affairs. The outcome of any application is made through NELS.
CONCLUSION
The innovative measures taken by the Mauritian Government are ambitious and set the sail for the next decade. As stated by the Prime Minister himself, a new dawn calls for brave measures.
