Mauritius's National Assembly will debate two landmark bills on 28 and 29 July: the Finance Bill 2026 and the Economic and Financial Measures (Miscellaneous Provisions) Bill 2026. Together amending 83 legislative provisions, they represent the deepest tax overhaul the island has seen in a decade.
QDMTT: aligning with OECD Pillar Two
The centrepiece is the Qualified Domestic Minimum Top-up Tax (QDMTT), enforcing a minimum effective tax rate of 15% on multinationals operating in Mauritius from the 2025-2026 fiscal year. Companies that previously benefited from preferential regimes below this threshold will be automatically topped up to 15%. Tax specialists at KPMG and PwC have flagged "rising administrative complexity" and a heightened risk of double taxation, particularly for groups operating across multiple jurisdictions.
Fair Share Contribution: a new levy on high earners
The bills also introduce a Fair Share Contribution (FSC) — an additional 15% charge on individual incomes exceeding MUR 12 million per year, pushing the effective tax rate as high as 35% for top earners. Companies with revenues above MUR 24 million will face surcharges of up to 5%, while banks could be hit with levies of up to 7.5% on earnings beyond that threshold. The stated aim is to "strengthen fiscal equity" while maintaining international competitiveness.
Solar panels, carbon markets and diplomacy
Beyond taxation, the Cabinet of 24 July approved a MUR 270 million residential solar panel subsidy programme and established an inter-ministerial committee to allocate land for renewable energy projects. On the climate front, a carbon market framework is being developed with the Organisation Internationale de la Francophonie (OIF), and Mauritius is preparing for COP31 in Turkey. The government also announced new ties with Monaco and a cultural agreement with Saudi Arabia.
Why it matters
This reform marks Mauritius's decisive entry into the OECD global minimum tax framework. For multinationals that have long used the island as a financial hub with preferential rates below 15%, the equation shifts fundamentally. The key question: can Mauritius retain its competitive edge against regional rivals that have yet to adopt OECD standards? Parliament's response, expected by month-end, will be watched far beyond the island's shores.