Passed in July 2026, the Finance Bill marks a turning point in Mauritian fiscal policy. From a new 35% tax bracket for high earners to taxation of foreign remote workers and new digital withholdings, PwC Mauritius says the text « fundamentally reshapes » the island's tax environment.
The end of the 20% ceiling myth
For decades, Mauritius cultivated an image as a low-tax jurisdiction with a marginal rate capped at 20%. That era is over. The Finance Bill 2026 introduces a 35% income tax bracket for any individual earning more than MUR 12 million per year (around €240,000). Presented as an equity imperative, the measure comes with a temporary exemption from the Fair Share Contribution for 2027 and 2028.
Tax experts are questioning the impact on Mauritius's international attractiveness, which has partly built its economic model on fiscal competitiveness for foreign residents and investors.
Foreign remote workers in the crosshairs
Holders of Premium Visa and Golden Visa — schemes created to attract international remote workers — are now subject to income tax on revenues transferred into Mauritius, unless prior foreign taxation is proven. Local bank expenditures are not treated as repatriated income, an important nuance for those concerned.
The digital economy under pressure
Two new withholding taxes directly target the digital sector: 5% on payments to digital advertising and marketing platforms, and 1% on ICT services exceeding MUR 300,000. Foreign providers of software, licences and IT maintenance services will also face a new levy that PwC describes as a « digital services tax » likely to create trade tensions.
A worrying fiscal countdown
PwC Mauritius notes the text brings to 11 the number of new taxes introduced since 2009, with 2 introduced in 2026 alone. « Two companies generating similar revenues could face different charges based on their international structure », the firm notes, pointing to an asymmetry in the Climate Change Responsibility Levy's application.
Why it matters
This fiscal repositioning changes the game for regional businesses and high-income individuals based in Mauritius. For the Indian Ocean region, it raises a broader question: if Mauritius loses its fiscal edge, which territories stand to benefit? The Seychelles, with their OECD compliance, are already positioning themselves as an alternative financial hub.
Sources: Defimedia, allAfrica, PwC Mauritius