New guidelines for Trusts and Foundations on the way

The implementation of the Finance Act will mark the end of the tax incentives to Trust and Foundations.

A ‘Practice Note’ is currently being finalized and would be made public soon, Defi Media reported.

Shahed Hoolash of Vistra Mauritius, was cited as saying that he expects the Government to clarify on the impact of the law on the Global Business sector.

“In the event a Trust has no activity in Mauritius, it will not be taxed here. Hence, it is important to have clear guidelines and modus operandi of such a measure,” he said.

Mahen Seeruttun, Minister of Financial Services, stated that the Mauritius Revenue Authority (MRA) will soon publish guidelines on the issue. “We came up with this measure as it was imposed by the Organisation for Economic Co-operation and Development(OECD),” he said.

However, until the air is cleared, experts are reportedly concerned that “if these entities are taxed in Mauritius, the island may lose its competitiveness and investors may for other jurisdictions.”