Country Update: Mauritius Mauritius, Opening doors to Africa and Beyond STEP MAURITIUS CONFERENCE 2015 Shammeem Abdoolakhan ABC Global Management Services Ltd/ABC International Services ( Seychelles) Ltd Board member STEP Mauritius
PRESENTATION OUTLINE Quick facts Country update - Mauritius Recent legislative amendments New legislations introduced Tax treaty updates New initiatives International accolades
QUICK FACTS: Financial services GDP contribution 10.3% Number of banks: 23 Number of Global Business Companies (Jan 2015): Category 1: 10,314 Category 2 :10,925 Global Funds: 886 Serviced by 175 Management Companies Employment: 13,000+
RECENT LEGISLATIVE AMENDMENTS Amendments to Companies Act 2001: Section 91(3)(a)(ii) was amended to require companies to maintain beneficial ownership information in respect of nominee shareholding. The amendment read as follows: The share register shall state: where the shares are held by a nominee, the names in alphabetical order and the last known addresses of the persons giving to the shareholder instructions to exercise a right in relation to a share either directly or indirectly through the agency of one or more persons
RECENT LEGISLATIVE AMENDMENTS Amendments to Trust Act 2001: Section 38(3) (a) (ii) of Trusts Act 2001 was also amended to require trustees of non resident foreign trust to keep identity information as well as underlying information ( i.e. beneficiaries). The amendment read as follows: A trustee shall keep a register of the names, in alphabetical order and the last known address of each beneficiary and settlor of the trust including a non resident foreign trust administered by him NOT A PUBLIC REGISTER!
RECENT LEGISLATIVE AMENDMENTS Amendments to Trust Act 2001: Section 38(3) of Trusts Act 2001 was also amended to require trustees to keep updated and accurate accounts and records of their trusteeship.
RECENT LEGISLATIVE AMENDMENTS (Budgetary announcement): Amendment of the Foundation Act & Limited Partnership Act The Foundation Act & Limited Partnership Act will be amended to facilitate settlement, compounding of offences will also be allowed for Foundations and Limited Partnerships as is the case for companies. The Registrar of Limited Partnership will also be empowered to issue Certificate of Current Standing for Limited Partnership.
Budgetary measures for the Financial Services Sector: Introduction of a special Financial Sector Incentive Scheme to attract international Asset and Fund managers to relocate their front-office to Mauritius which will help to further strengthen Mauritius attractiveness as an investment platform. Diversify Global Business Activities in Africa through effective promotion campaigns. Set up of Financial Services Institute to provide specialized training courses to cater for the needs of the industry which will help the meet the requirement of quality workforce for long term growth of the financial service sector Revive the secondary market for Government Securities by providing an exit mechanism (through the central Bank of Mauritius) to the market makers which will make trading in government securities possible. Revive the Financial Services Promotion Agency (FSPA) to promote the Financial Services Sector through effective promotion campaigns. Set up of an Office of Ombudsperson on Financial Institutions to deal with complaints and recommend appropriate remedial action to protect investors
Tax Treaty Updated (42) EUROPE (11) France United Kingdom Germany ( New) Sweden Italy Luxembourg Cyprus Belgium Croatia Monaco Guernsey ASIA (9) India China Pakistan Singapore Sri Lanka Thailand Nepal Malaysia Bangladesh AFRICA(14) Zimbabwe Swaziland Madagascar Botswana Namibia South Africa (new) Mozambique Lesotho Rwanda (new) Senegal Uganda Tunisia Zambia Congo MIDDLE EAST(5) Kuwait Oman UAE State of Qatar Egypt Others(3) Barbados Seychelles Australia
TAX TREATY UPDATES Treaty awaiting ratification (6) Gabon (signed 19 July 2013) Kenya Nigeria (signed 13 August 2012) Russia Malta South Africa (signed 17 May 2013) Treaty await signature(4) Burkina Faso Ghana Morocco Cape Verde Treaty being negotiated(15) Algeria, Canada, Czech Republic, Greece, Hong Kong, Lesotho (New), Montenegro, Portugal, Republic of Iran, Malawi, Saudi Arabia, St Kitts & Nevis, Tanzania, Vietnam and Yemen
TAX INFORMATION EXCHNAGE AGREEMENT (TIEAS) In force (7) Australia Denmark Finland Norway Guernsey Iceland USA Signed (awaiting ratification -3) Faroe Island Greenland Austria Awaiting Signature(3) Greece Isle of Man Korea
Amendment of Article 7(b)- Sub Part B(Exempt income) Income Tax Act....gains or profits derived from the sale of units, securities, gold,silver or platimum, held for a continuous period of at least 6 months by a person other than a company holding a Category 1 Global Business License under the Financial services Act shall be exempted from tax.. Short term capital gains tax??
FATCA: 27 Dec 2013: Signing of an Agreement for the Exchange of Tax information between US and Mauritius Govt Subsequent signing of Intergovernmental Agreement ( Model 1 IGA) with the view to comply with Foreign Account Tax Compliance Act (FATCA) Both the TIEA and the IGA agreement has now been legal effect through regulation and have entered into force in the 29 August 2014
New INITIATIVES: The Limited Liability Partnership (LLP) Bill in the pipeline which will consolidate the product offerings of Mauritius.
Mauritius Ranks World Bank Doing Business 2015 (out of 189 countries) Overall ranking on ease of doing business 28 th (1 st in Africa) Mo Ibrahim Index of African Governance (out of 52 countries) 1 st Global Competitive Index 2014-2015 (out of 144 countries) 39 th ( 1 st In Africa) The Wall Street Journal of Economic Freedom ( out of 178 countries) 10 th ( 1 st In Africa)
INTERNATIONAL ACCOLADES: OECD and Global Forum on Transparency and Exchange of Information for Tax purposes attributed a rating of Largely Compliant to Mauritius as a testimony to successfully implementing measures recommended by the organization following the Second Supplement Peer Review. It is to be noted that the following other countries such as United States, United Kingdom, Germany, Italy, Hong Kong and Singapore have a similar rating which confirms the country s reputation as a sound jurisdiction of good repute and transparent.
Thank You Contact details Shammeem Abdoolakhan TEP Director ABC International Services (Seychelles) Ltd ABC Global Management Services Ltd Board member STEP Mauritius. 3 rd Floor Raffles Tower, Cybercity, Ebene, Mauritius. Tel: (230) 464 2668; Mob (230) 52566879 E-mail: s.abdoolakhan@abcglobal.mu