The Mauritius government has issued a practice statement defining “place of effective management” for tax residency purposes.
The new statement, issued November 28, clarifies 2018 amendments made to the Mauritius income tax law which state that companies incorporated in Mauritius will be treated as nonresidents if their place of effective management is situated outside Mauritius.
According to this new practice statement, all facts and circumstances must be consulted in determining “place of effective management” including “use of information and communication technologies in the decision-making process.”
Generally, to have place of effective management in Mauritius, strategic decision making must be made in Mauritius and either the board of directors must meet there or the execuive management of the company must regularly be exercised in Mauritius.
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