Transcript STRUCTURING INVESTMENT IN AFRICA: MAURITIUS TAX …

M. Mosafeer
Director
Large Taxpayers Department &
International Taxation Unit
Mauritius Revenue Authority
IFA, May 2012
1.
2.
Mauritius Comparative Advantage
Mauritius
countries
treaty
network
3.
Objectives & constraints
4.
Way forward
with
African
• Africa and Mauritius linked by close cultural, business and
bilateral ties.
• Mauritius the only International Financial Centre that is a
member to all the major African regional organizations
(SADC, COMESA and African Union)
• Political stability, a robust banking system, a pro-business
environment, good infrastructure, a relatively low cost of
professional services, its pool of highly qualified and
bilingual professionals, its excellent telecommunication
connectivity to the rest of the world
•
Leading position of Mauritius in the
continent in many indicators and indices –
African
◦ 1st out of 53 countries in Africa on the Mo Ibrahim Index of
African Governance, the Fraser Institute’s Economic
Freedom Index and again first in Africa, in the World Bank's
Ease of Doing Business index, for the 4th year running.
•
Wide network of DTA and IPPA

Double Taxation Agreements
Signed &
In Force
(13)
Botswana
Lesotho
Madagascar
Mozambique
Namibia
Rwanda
Senegal
Seychelles
South Africa (renegotiated)
Swaziland
Tunisia
Uganda
Zimbabwe
Signed & Awaiting
ratification
(2)
Treaties Negotiated
And Awaiting
Signature
(4)
Zambia
Egypt
Republic of Congo Nigeria
Ghana
Kenya
South Africa
(renegotiated)
Treaties under
Negotiation
(5)
Algeria
Burkina Faso
Malawi
Tanzania
Yemen
Signed &
In Force
Signed &
Awaiting ratification
Treaties Negotiated And
Awaiting Signature
Treaties under
Negotiation
(5)
(13)
(4)
(7)
Burundi
Madagascar
Mozambique
Senegal
South Africa
Benin
Botswana (under
renegotiation)
Cameroon
Chad
Comoros
Ghana
Guinea Republic
Kenya
Mauritania
Republic of Congo
Rwanda
Swaziland
Tanzania
Zimbabwe
Malawi
Uganda
Lesotho
Algeria
Burkina Faso
Egypt
Ethiopia
Tunisia
Yemen
Zambia
Botswana

Expand the Mauritius network to 30 African
countries in the short to medium term
How?
 Establishing treaties in priority with:
• Countries of the SADC and COMESA groups – Both regional
groups are finalizing model texts for the groups; and
• Emerging / growing economies and those that are in
transition to capitalise on the investment opportunities they
offer
◦ Countries not proceeding with signing /
ratifying agreements
◦ Armed conflicts in certain countries
(difficult to arrange for negotiations /
signing)



The conclusion of DTAAs with other countries forms an integral part
of Government’s action to improve the investment climate and
attract foreign investment and also to implement the most enabling
framework supportive of our Global Business Industry.
Government is committed to consolidate the position of Mauritius as
the jurisdiction of choice for investing into Africa.
3 important measures were announced in the 2012 budget speech
to enhance the Mauritius offering:
◦ the widening of our network of DTA & IPPA African States;
◦ the transformation of our airport into a new hub for the region, providing
interconnection between Africa and the rest of the World.
◦ the appointment of two roving ambassadors to focus on further
developing our relationship with Africa and countries of the Indian Ocean
region;




Mauritius is already widely used for Indian outward investments into
Africa
China is equally using Mauritius as a base for expansion into the
promising African continent
Certain Development Financial Institutions also favor Mauritius as
the natural domicile for their investments in Africa (IFC, ADB etc.)
Major global companies with plans to expand their operations in
Africa have decided to do so by setting up their regional base in
Mauritius
These moves can only testify that Mauritius is rightly set to be the
future gateway for conducting business with Africa.