Offshore Banking

Located due east of Madagascar in the Indian Ocean, Mauritius can be described as one of the best-kept secrets in this part of the world. This relatively unknown island certainly can be called a tax advantaged jurisdiction, aside from also being one of most beautiful places (and one of the least expensive) places to live. The entire population of the country is about 1.2 Million, with 150,000 inhabitants occupying the friendly capital of Port Louis. Although technically an English Commonwealth member (the country gained independence in 1968), it is interesting to see a very strong French influence as well.
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A fairly new comer to the world of offshore banking & incorporations, Mauritius is quickly becoming recognized as a small but sound jurisdiction. The Mauritius Offshore Business Activities Authority (MOBAA) regulates such matters as investments, trust services, trading and pooled or mutual fund programs. Banking is regulated by a separate entity, namely the Bank of Mauritius, which acts as both regulatory body and the central bank. The confidentiality act of 1992 covers such matters as privacy of client affairs and business transactions inside the country. In addition, this tiny country does have its own stock exchange, and both open end or closed end mutual funds (investment pools) must be registered with the (and are regulated by) Stock Exchange of Mauritius, located in Port Louis.
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Both trust and company formation services are locally available, although some recent changes in the tax regulations no longer permit a 100% tax-free status with regards to offshore companies. Any offshore company previously formed prior to July 1, 1998 still enjoys such an exemption, but companies formed after this date are liable for a 15% tax liability. While such a tax liability is certainly more favorable that European or other taxation rates, it does mark a change from the previous full tax exemption.
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There are NO Estate or Inheritance tax liabilities in Mauritius. In addition, there is presently no capital gains taxation as well. English is the official language of the country, but French is widely spoken and used. |

Offshore companies in Mauritius have the following advantages: * legal tax exemption (GBC 2, which is a local kind of an offshore company, is non-resident for tax purposes); * neither accounting nor reporting requirements; * business can be conducted internationally; * high level of privacy protection (by structuring the shareholding through nominee shareholders and appointing nominee directors); * offshore company can be incorporated with one director and one shareholder; * offshore company enjoys limited liability without any paid up capital (no minimum capital required); * offshore company formation takes 48 hours (corporate documents will be shipped by DHL in seven-ten days).

•Exemption from compliance with the Exchange Control Act.
•Freedom to conduct all legitimate banking and other financial business with non residents.
•Exemption from credit, interest rates and other restrictions normally applied to business of domestic banks.
•Low income tax rate of 5% on all offshore profits.
•Free repatriation of profits without further taxation.
•Exemption from stamp duty on documents relating to offshore business transactions.
•Exemption from custom duty on imported office equipment.
•No withholding tax on interest payable on deposits raised from non-residents by offshore banks.
•Double taxation avoidance treaties with the United Kingdom, France, Germany, Malaysia, Sweden, India, Italy, and Zimbabwe. Similar agreements are being negotiated with other countries.
•Expatriate staff are subject to a concessionary personal income tax rate, i.e. half the normal personal tax rates.
•No estate duty or inheritance tax is payable on the inheritance of shares in an offshore entity.
•No capital gains tax

PERSONAL INCOME TAX
The earlier than planned implementation of a single tax rate of 15% has bolstered the island’s reputation as a low-tax jurisdiction, thereby attracting new business ventures. Personal tax at a rate of 15% make Mauritius one of the lowest tax platforms across the world

Japans lost decade revisited by stratfor june 4 2009

www.realclearworld.com/.../japans_lost_decade_revisited_96819.html

the lost decade: lessons from japan’s real estate crisis the global financial crisis: lessons from the japans’ lost decade of 1990’s by dick k. Nanto 1. Democracy alive and well: Investors have peace of mind knowing that Mauritius is home to a stable and democratic political environment – and has been for 40 years. 2. Companies, trusts, trustees of unit trust schemes and non-resident partnerships are all subject to corporate tax at a rate of 15% on chargeable income.

Language

English is the official language. However, the Mauritian population is largely bilingual, being equally fluent in English and French. Creole is also spoken and understood by everyone. Political Structure

The British ruled Mauritius for 158 years until 12 March 1968 when it became an independent country within the Commonwealth. The Republic of Mauritius is a Westminster style democracy. The President is the Head of State and Commander in Chief. Full executive power rests with the Prime Minister who is Head of Government. The Members of Parliament are elected every five years by popular vote and a number of political parties contest the elections, reflecting the country's firm commitment to a multi-party political system. * With a population of 1.2 million inhabitants. Mauritius benefits from a large pool of readily available graduates, qualified lawyers and accountants. Most Mauritian barristers have been called to the Bar both in the Uk and Mauritius. Accountants are members of UK professional bodies such as the Institute of Chartered and Certified Accountants. * Political stability guaranteed by parliamentary democracy based on the Westminster model. * Personal Income Tax * The earlier than planned implementation of a single corporate tax of 15% has bolstered the island’s * reputation as a low-tax jurisdiction, thereby attracting new business ventures. * Both individual and corporate tax at a uniform rate of 15% make Mauritius one of the lowest tax across the world.