The Budget 2026–2027 keeps Mauritius's corporate tax framework broadly stable while introducing targeted incentives for manufacturers and tightening several rules. This guide summarises the changes that matter most to companies operating in Mauritius.
For the difference between company and personal tax generally, see our existing guide on corporate vs personal tax in Mauritius.
Investment tax credit for manufacturers
The most generous new incentive: an investment tax credit of 15% over 3 years — 45% in total — for manufacturing companies, on expenditure incurred on:
- new plant and machinery (excluding motor cars);
- artificial intelligence solutions; and
- patents.
Any unrelieved investment tax credit can be carried forward over 10 years, and the existing credit ending on 30 June 2026 is extended for another three years, applying to qualifying investment incurred up to 30 June 2029.
Export and reduced rates
The reduced corporate tax rate of 3% on profits from exports of goods continues, but it no longer applies where those profits derive from exports of live animals.
QDMTT and the global minimum tax
Mauritius is aligning with the OECD GloBE rules. Key clarifications to the Qualified Domestic Minimum Top-Up Tax (QDMTT):
| Change | Detail |
|---|---|
| Investment funds / REITs | Exempt from QDMTT if they are the parent entity of a multinational enterprise (effective 1 July 2025) |
| Amendment window | A QDMTT return can be amended within 3 years of submission, up from 2 years |
| Penalty | The penalty for non-payment of QDMTT is reduced from 5% to 2.5% |
| Filing deadline | QDMTT returns due no later than 15 months from the end of the month in which the fiscal year ends |
Partial exemption regime broadened
The definition of core income generating activities for an Investment Adviser or Asset Manager to benefit from the partial exemption regime is broadened to include the management of non-securities instruments such as loan receivables, mortgage-backed exposures and invoice financing portfolios.
Deductions being removed
From 1 July 2026, two deductions are removed:
- the 150% deduction for expenditure incurred by hotels on cleaning, renovation and embellishment works; and
- the double deduction for expenditure on Joint Tertiary Education contracts with African Universities.
The rate of annual allowance on capital expenditure incurred on hotels is also reduced from 30% to 15%.
Corporate Climate Responsibility levy
Offsetting of unused tax credits, including foreign tax credits, is no longer allowed against the Corporate Climate Responsibility levy. The levy also becomes payable quarterly under the Advance Payment System (APS), phased in:
| Financial year | Share under APS |
|---|---|
| FY 2026/27 | 25% |
| FY 2027/28 | 50% |
| FY 2028/29 | 75% |
| FY 2029/30 | Full APS |
Other clarifications
- A non-resident company supplying software, software licences, applications and maintenance services, as well as distance maintenance of programmes and ICT equipment, will be subject to income tax in Mauritius.
- The Fair Share Contribution criterion based on supplies exceeding Rs 24 million (or VAT registration) no longer applies; the chargeable income test above Rs 24 million continues.
- A corporate may spend up to 25% of its CSR Fund and must remit at least 75% to the National Social Inclusion Foundation through the MRA.
Plan around the changes
These changes reward capital investment by manufacturers while closing several reliefs. Modelling them against your projections is worthwhile — our accounting service and directory of verified accountants can help. See also the wider Budget 2026–2027 business guide.
Frequently Asked Questions
What is the new investment tax credit for manufacturers in Mauritius?
Manufacturing companies get an investment tax credit of 15% over three years — 45% in total — on new plant and machinery (excluding motor cars), artificial intelligence solutions and patents. Unrelieved credit can be carried forward over 10 years.
Does the 3% export tax rate still apply?
Yes, the reduced 3% corporate tax rate on profits from exports of goods continues, but it no longer applies where the profits derive from exports of live animals.
How is the QDMTT penalty changing?
The penalty for non-payment of the Qualified Domestic Minimum Top-Up Tax is reduced from 5% to 2.5%, and the window to amend a QDMTT return is extended from 2 years to 3 years.
When do the hotel deductions end?
From 1 July 2026, the 150% deduction for hotel cleaning, renovation and embellishment works and the double deduction for Joint Tertiary Education contracts with African universities are removed. The annual allowance on hotel capital expenditure also drops from 30% to 15%.
How will the Corporate Climate Responsibility levy be paid?
The levy becomes payable quarterly under the Advance Payment System, phased in at 25% in FY 2026/27, 50% in FY 2027/28, 75% in FY 2028/29, and full APS in FY 2029/30. Unused tax credits can no longer be offset against it.