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# [MAURITIUS] Budget 2026-2027: 10-Year Tax Holiday for Startups, Deficit Cut to 3.7% of GDP
- URL: https://businessoi.media/en/maurice-budget-2026-2027-10-ans-dexoneration-fiscale-pour-les-startups-deficit-reduit-a-3-7-du-pib-en/
- Published: 2026-10-07T02:56:41.000Z
- Updated: 2026-10-07T02:56:41.000Z
- Description: Mauritius's 2026-2027 budget bets on a 10-year tax holiday for startups, a 45% investment credit for manufacturers and a deficit cut to 3.7% of GDP. A dedicated AI SEZ opens the door to 100% foreign capital.
- Author: Emmanuel TAOCHY
- Tags: Maurice, Finances publiques, Startup, Investissement, Revue matinale, #en

Presented in June 2026, Mauritius's 2026-2027 budget rests on two pillars: **fiscal consolidation** and **attracting technology investment**. The government targets a deficit cut to **3.7% of GDP** (from 6% last year), with revenue projected at **Rs 235.5 billion** and public debt declining to 85.5% of GDP by June 2027.

## Ten Years of Tax Exemption for Startups

The flagship measure for the entrepreneurial ecosystem: a **10-year income tax holiday** for startups from the start of their operations. This is accompanied by a **45% investment tax credit** over three years for manufacturers, and a Special Economic Zone at Côte d'Or dedicated to AI and digital companies — with 100% foreign ownership permitted and specific tax reliefs.

## Personal Income Tax Reform

The income tax structure is being redesigned: a rate of **20%** applies on chargeable income between Rs 1 million and Rs 12 million, and **35%** above that threshold. VAT remains at 15%. Excise duties on tobacco and spirits increased 10% from June 20, 2026.

## Pension Reform and Extended Leave

From January 1, 2027, the basic pension will be replaced by the **State Age Pension (SAP)**. Maternity leave extends to **12 months** and paternity leave to **six weeks** — two significant changes that will require employers to review their HR organisation and payroll structures.

## Why It Matters

This budget sends a strong signal to foreign investors: Mauritius is reaffirming its ambition to be the Indian Ocean and Africa's tech gateway. The decade-long startup exemption and the Côte d'Or SEZ could attract regional fintech and AI structures seeking a stable legal and tax base. For established businesses, the pension reform and extended leave entitlements demand swift HR adjustments.