June 29, 2023

Mauritius Freeport: update on income tax holiday for Freeport Operator/Private Freeport Operator

The Government of Mauritius has agreed to the promulgation of the Income Tax (Amendment) Regulations 2023 to specify the core income generating activities (CIGA) in relation to the authorised freeport activities being performed by a freeport operator or private freeport developer such as warehousing and storage, light assembly, minor processing, building, repairs and maintenance, and vault services.


It will be recalled that the Income Tax Act was amended in 2022 to grant an eight-year income tax holiday to a newly set up freeport operator or private freeport developer making an investment of at least Mur 50 million, provided that it started its operations after 1 July 2022 and that it satisfies such conditions relating to the substance of its activities as may be prescribed.  It is understood that the Income Tax (Amendment) Regulations 2023 will provide guidance on the CIGA and therefore will shed light on how the freeport operator / private freeport operator is expected to achieve economic substance in Mauritius.