September 30, 2021

Changes in the Mauritius Finance Act 2021 pertaining to Trusts and Foundations

On the 24th August 2021, the Mauritius Revenue Authority (MRA) issued a Statement of Practice pertaining to changes in the Finance Act 2021 (Finance Act) for Trusts and Foundations.


The Trusts and Foundations which have been set up after the 1st July 2021 will no longer be eligible to file a declaration of non-residence with the Director General of the MRA.  However, for the Trusts and Foundations which have been created prior the 1st July 2021, they will benefit from a grandfathering provision applicable up to year of assessment 2024/2025.


It is important to note that according to the Statement of Practice issued by the MRA, a Trust and Foundation will be deemed to be non-resident if their central management and control takes place outside Mauritius.


Determination of Central Management and Control (CMC) :-


For a Trust


A trust would have its central management and control in Mauritius when:-

  • The trust is administered in Mauritius and a majority of the trustees are resident in Mauritius;
  • The settlor of the trust was resident in Mauritius at the time the instrument creating the trust was created or at such time as the settlor adds new property to the trust; and
  • A majority of the beneficiaries or the class of beneficiaries appointed under the terms of the trust are resident in Mauritius


For a Foundation


A foundation would have its central management and control in Mauritius if :

  • The founder is resident in Mauritius; and
  • A majority of the beneficiaries appointed under the terms of a charter or will are resident in Mauritius


In this respect, for a Trust and Foundation to be considered having their CMC in Mauritius, all the conditions mentioned above must be met.


Income derived from Mauritius

A resident trust and foundation are taxed at 15% and where their central management and management is outside of Mauritius, the statement of practice mentioned that they will be taxed only on income derived from Mauritius.


Exempt Body

A trust or foundation whose exclusive purpose or object is of a charitable nature will be exempt from tax in Mauritius.


Partial Exemption

A trust or foundation may be eligible to claim partial exemption on such categories of income as specified under the Income Tax Act such as foreign income.


Annual Return of Income

Whether the trust or foundation is considered as resident or non-resident, they will have to file an annual return in Mauritius.



The changes bought in the Finance Act do not affect the competitivity of Mauritius for the setting up of Trusts and Foundations since this change is in relation to the fact that a non-resident trust or foundation will now be taxed only on the income derived from Mauritius (if any).


With these changes, Mauritius reiterates its commitment to be in line with the international taxation standard and this reinforces Mauritius as being a reputable financial jurisdiction.


Contact details

For more information on Trusts and Foundations, we invite you to contact your relationship manager at MITCO or the business development Team on