Summary
On 19 July 2019, the Organisation
for Economic Cooperation and Development (OECD) released its
report on harmful tax practices across various jurisdictions. The
report indicates that Mauritius which had previously been
identified as a jurisdiction with harmful tax practices no longer
has such harmful tax practices. Specifically, the Mauritian
"Partial Tax Exemption Regime", which was introduced in
2018 to replace the harmful "Global Business Licence
Regime" has now been declared not harmful.
Details
In 2015, the OECD introduced the
Base Erosion and Profit Shifting (BEPS) framework, which aims,
among other things, to tackle international tax avoidance, which is
facilitated by the shifting of profits from high paying tax
jurisdictions to low paying tax jurisdictions. As part of the BEPS
Project, the OECD periodically identifies tax regimes, which have
features that can facilitate BEPS, and have the potential to
unfairly impact the tax base of other
