Mauritius: Selected Issues
IMF Staff Country Reports, December 8, 2017
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- Mauritius: Selected Issues
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Bibliographic details
- Published: December 8, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484331576.002
Tax transparency and anti-avoidance initiatives
- Mauritius is dealing with two separate initiatives: one by the OECD-G20 (BEPS initiative) and one by the European Union.
- Under the BEPS initiative, Mauritius has committed to including minimum standards and possibly other BEPS-compliant features into its domestic laws and bilateral double taxation avoidance agreements (DTAs).
- Sixteen DTAs have been added in the past 6 years.
Domestic tax framework and contested features
- Corporate income tax (CIT) rate: 15 percent.
- System: worldwide system that taxes foreign earnings but allows for foreign tax credits (FTCs).
- Notable contested feature: Deemed Foreign Tax Credit.
Macrofinancial linkages and vulnerabilities
- The GBC sector provides major inexpensive funding to banks.
- GBC investment patterns imply these deposits are potentially highly volatile.
- Important macrofinancial linkages between the GBC sector and the financial sector present vulnerabilities that need to be managed carefully.
Subject areas covered
- Anti-avoidance rules
- Asset and liability management
- Competition
- Excess liquidity
- Financial markets
- Labor and labor markets
- Monetary policy and monetary policy frameworks
- Taxes
Content in this bundle
- Country Report