THE BAOBAB TREE
As distinctly African symbols, Baobab trees aren’t just known for providing shade and nourishment but
they are also a central part of tradition, legend and folks lore. It is believed that Kings and elders would hold their meetings under the Baobab tree, with the belief that the tree’s spirits would guide them to successful
decision-making. The baobab is the listening tree and stand proud as a true symbol of life in Africa.
Please find below a high level overview of some of the more pertinent regulatory updates:
ANNUAL LICENCE FEES
The deadline for payment of annual licence fees to the Mauritius Financial Services Commission (“FSC”) was 30 June 2017 and all fees were paid in a timely manner prior to the deadline.
AMENDMENT TO THE FSC AML/CFT CODE
On 31 March 2012, the FSC had issued a Code on the Prevention of Money Laundering and Terrorist Financing (AML/CFT Code), which implemented the Financial Action Task Force Recommendations (‘FATF Recommendations’) relevant to the FSC.
The AML/CFT Code has now been amended to include the features of the Guidance Notes issued by the FATF for an effective supervisory system with the aim to enhance the understanding of the relevant FATF requirements.
REGULATIONS MADE UNDER SECTIONS 355 AND 360 OF THE MAURITIUS COMPANIES ACT
In 2016, the Registrar of Companies in Mauritius introduced an online platform for management companies to effect statutory filings or incorporate new companies. As from 1 July 2017, the following changes have been implemented:
- On Incorporation only Electronic Certificates of Incorporation will be issued, for which no fee is payable. However, signed certificates can be requested against payment of a certain fee.
- There will be a fee charged per submission for statutory filings.
MAURITIUS SIGNED THE MULTILATERAL INSTRUMENT IMPLEMENTING THE TREATY RELATED BEPS PROVISIONS
Mauritius signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the “MLI”) on 5th July 2017 with a view to emphasis its commitment towards combatting tax avoidance/evasion and base erosion.
Out of the 42 Double Taxation Avoidance Agreements (“DTAAs”) which Mauritius has in place, it has nominated 23 as Covered Tax Agreements (“CTAs”). It should be noted that the MLI becomes effective only when both parties decide to treat the DTAA as CTA. However, out of the 23 countries nominates by Mauritius, 8 countries, being Barbados, Republic of Congo, Lesotho, Madagascar, Oman, Qatar, Swaziland and United Arab Emirates, have not signed the MLI. Hence, the 15 DTAAs which would be changed by the signing of the MLI would be:
Belgium Croatia Cyprus
France Germany Guernsey
Italy Kuwait Luxembourg
Malta Monaco Seychelles
South Africa Sweden United Kingdom
Mauritius will discuss bilaterally with the partners of the remaining DTAAs with a view to implement the minimum standards required under BEPS project by end of 2018.
The MLI will not enter into force until three months after at least 15 jurisdictions have deposited instruments of ratification with the OECD.
THE FINANCE BILL 2017
Please click READ MORE below to see a summary of the provisions of the Finance Bill 2017 which are relevant to the global business sector and which will become effective once it is ratified by the Parliament and assented by the President of the Republic of Mauritius.