Mauritius Budget 2013: Attracting Investors, Or Scaring Them Away?

On 9 November 2012 the Deputy Prime Minister and Minister of Finance in Mauritius, Hon. Xavier Luc Duval, delivered his speech on the Budget for the year 2013. One clear objective mentioned in the speech is for Mauritius to act as a "catalyst for investment." However, it is debatable whether the Minister's announcement, at the same time that new commercial substance requirements are to be introduced for GBC 1 companies, will be seen as a positive move by foreign investors.

A Mauritius GBC 1 company is an offshore global business company defined in terms of the Financial Services Act 2007. This company is treated as tax resident in Mauritius, but is classified as a Category 1 Global Business Company, engaged in international business, and is entitled to an effective three per cent (3 %) income tax rate in Mauritius on its foreign income.