May 21, 2021

Incentives of the pharmaceutical industry in Mauritius

The Government of Mauritius is offering several advantages to promoters interested to set up a pharmaceutical manufacturing unit in Mauritius.

 

The table below lists the incentives applicable to companies engaged in pharmaceutical, medical devices, cosmeceutical & dermatological products and R & D/ Research Laboratories:

 

Activity

Incentives

a)      Pharmaceutical products

 

b)     Medical Devices, Instruments and
products

 

c)      Cosmeceutical /Dermatological products

 

8-year corporate tax holiday

 

No registration duty or Land Transfer tax on purchase or lease of land or building

 

3 % corporate tax on profits derived from exports of goods (after 8-year corporate tax holiday)

 

No import duties on equipment & raw material

 

No export duties in Mauritius

 

VAT on raw materials is payable at customs clearance but reimbursable on exports

 

Accelerated depreciation of 50% on machinery, equipment and
construction of industrial premises dedicated to manufacturing
activities

 

Waiver on Building and Land Use Permit fees for construction of pharmaceutical manufacturing factory

 

20% margin of preference

 

Refund of 60% on Air Freight Cost for export to Africa (including Madagascar), Australia, Canada, Europe, Japan,
Middle East Countries and USA (until June 2022)

 

Refund of 25% on Basic Freight Cost (the maximum of USD 300 per 20T-feet container and USD 600 per 40T –feet container) 49 ports in 20 countries in Africa

 

R&D and Research Laboratories

VAT exemption on construction of medical R&D Centers

 

VAT exemption on plants and equipment

 

Accelerated depreciation of 50% in respect of capital expenditure incurred on R&D, that is the investment cost is fully amortised in 2 years

 

Exemption of registration duty on acquisition of immovable property

 

Double deduction in respect of qualifying expenditure on R&D directly related to the entity’s trade or business and provided the R&D is carried out in Mauritius.

 

Support Services

Any other activities in relation to provision of support services to the development of the pharmaceutical industry

 

Applicable taxes as defined in the existing legislations

 

 

For more information on the pharmaceutical industry in Mauritius, feel free to contact the business development team by email on bd@mitcoworld.com or phone them on + 230 404 8000.



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