Mauritius has long been a favoured destination for international investors, but the 2025–2026 legislative updates have transformed it from a simple "low-tax" jurisdiction into a sophisticated, high-transparency International Financial Centre. For entrepreneurs, particularly those from South Africa, the island now offers a stabilized environment that balances competitive fiscal incentives with world-class digital compliance.

Here is why Mauritius remains the premier choice for business registration in 2026 and the critical legislative updates you need to know.

1. A Sophisticated and Competitive Tax Framework (2026 Updates)

While the standard corporate tax rate remains at 15%, the 2025–2026 National Budget has introduced targeted measures to ensure fiscal responsibility and attract specific industries:

• The 3% Global Trade Advantage: Companies engaged in the international trade of goods (buying and selling goods without them entering Mauritian territory) benefit from a reduced corporate tax rate of 3%. This is a massive incentive for South African businesses re-engineering supply chains to mitigate global tariff hikes.

• Revised VAT Thresholds: As of October 1, 2025, the compulsory VAT registration threshold was reduced from MUR 6 million to MUR 3 million. This means more small-to-medium enterprises (SMEs) are now integrated into the formal tax net.

• Digital Services VAT: Effective January 1, 2026, foreign suppliers of digital or electronic services to Mauritian customers must register for VAT irrespective of their turnover.

• Fair Share Contribution: For the period through June 30, 2028, companies with an annual chargeable income exceeding MUR 24 million are subject to an additional contribution of 2% to 5% depending on their sector.

2. The Gateway to Africa and Asia

Mauritius is ranked as Africa's most stable country in 2026, offering the lowest political and economic risk on the continent. Its strategic advantages include:

• Extensive Treaty Network: Access to over 45 Double Taxation Avoidance Agreements (DTAAs), including a robust treaty with South Africa that provides certainty for cross-border capital flows.

• Preferential Market Access: Leverage unparalleled access to 68% of the world’s population through the African Continental Free Trade Area (AfCFTA) and various Comprehensive Economic Partnership Agreements.

• Freeport Incentives: The Mauritius Freeport remains a duty-free and VAT-free zone for the storage and re-export of goods, offering 100% foreign ownership and fast-tracked customs clearance.

3. Modernized Digital Compliance and "Ease of Doing Business"

The "ease" of doing business in Mauritius has been digitized for 2026. The jurisdiction has successfully moved all statutory functions to advanced electronic platforms:

• Portal Migration: All company filings, name reservations, and payments must now be conducted via the new cbris.mns.global domain, which replaced the old portal on January 7, 2026.

• XBRL Reporting Standards: Annual returns and financial summaries are now submitted using eXtensible Business Reporting Language (XBRL) to ensure data accuracy and international transparency.

• Beneficial Ownership Transparency: Under Section 91 of the Companies Act, all companies must now secure a written and signed declaration from their Ultimate Beneficial Owners (UBOs). The final deadline for compliance for older companies is June 30, 2026.

4. Labour Reforms and Quality of Life

Incorporating in Mauritius provides access to a residence and work permit framework designed to attract global talent:

• Occupation Permit (OP) Updates: The minimum monthly salary for a "Professional" OP is now MUR 50,000, while a new "Expert Permit" offers a 10-year residency for highly skilled specialists in sectors like Fintech and Wealth Management.

• Labour Protections: New reforms in 2024 and 2025 have increased maternity leave to 16 weeks and introduced the "Right to Disconnect," allowing employees to disengage from work communications during "unsocial hours" (nights and weekends).

Conclusion: A Jurisdiction Built for the Future

In 2026, Mauritius is no longer just a tax-efficient hub; it is a "precision jurisdiction" that rewards substance, transparency, and digital readiness. Whether you are a South African entrepreneur looking to hedge against regional volatility or a global startup seeking a secure launchpad into emerging markets, Mauritius provides the legal and fiscal infrastructure to scale safely.

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