Trustees´ Duties And Liabilities Under Mauritius Law

Mauritius has become a jurisdiction of choice for trust and estate planning because of an array of fiscal and non fiscal factors, amongst which, are its well established financial services and banking infrastructure, stable economy and favourable tax regime. Indeed, a Trust with non resident settlors and beneficiaries are exempt from tax if election is made to be deemed non-resident. On the other hand, a resident trust is taxable on its chargeable income at the rate of 15% of their net income after deductions of allowable expenses. However, foreign tax credits are available up to 80% of the Mauritian tax liability so that a resident trust will pay a net effective tax of 3% only. Tax resident Trusts will enjoy the benefits of Mauritius' network of tax treaties.