The Finance Bill 2026, fast-tracked through Parliament, introduces a series of unprecedented fiscal measures that are reshaping the digital economy landscape in Mauritius.
A new 35% tax bracket
The most significant change: annual income exceeding Rs 12 million will now be taxed at 35%. This bracket was previously absent from the Mauritian tax system, which had long maintained a flat-rate model to attract high-earning expatriates. The measure takes effect from 1 July 2026 and also applies to Premium and Golden Visa holders — foreign remote workers who transfer funds to Mauritius. They are only exempt if they can prove their income was already taxed abroad.
Digital advertising and IT services in the crosshairs
The Bill introduces a 5% withholding tax on advertising and marketing expenditure made through digital platforms — including Google, Meta and similar intermediaries. Additionally, a 1% withholding rate will apply to payments for ICT services exceeding Rs 300,000. These measures aim to capture more of the value generated within the local digital economy.
Enhanced monitoring of high-net-worth individuals
To strengthen tax compliance, the CWA and CEB will be required to flag any water or electricity bill exceeding Rs 100,000. Insurers must report vehicles insured for more than Rs 2 million. This creates a broader cross-sectoral wealth surveillance framework.
Incentives to balance the reforms
The Bill is not purely punitive. Manufacturers receive a 45% tax credit for machinery purchases, AI integration and patents. Start-ups with annual turnover below Rs 100 million benefit from a 10-year tax exemption. The tax-free ceiling on retirement gratuities is raised to Rs 3.5 million.
Why it matters
Mauritius has long used fiscal attractiveness as a development lever. This reform signals a shift: the island is now taxing platform-based income, high earners and international mobility more aggressively. How foreign investors and digital nomads respond in the coming months will be telling.
Source: L'Express Mauritius / allAfrica, 28 July 2026