- Is there a specific tax regime for carried interest in your jurisdiction?
- What is the applicable tax treatment?
- Under which conditions are the regime applicable?
- Who are the beneficiaries?
- Which types of funds are concerned?
- Is carried interest subject to social security in your jurisdiction?
- Any other key information?
jurisdiction
1. Is there a specific tax regime for carried interest in your jurisdiction?
No.
2. What is the applicable tax treatment?
The tax treatment depends on how carried interest is structured:
- Management Fee – Taxed at the standard 15% income tax rate. A CIS manager that is a tax-resident entity may qualify for an 80% exemption, reducing the effective rate to 3%, subject to substance conditions.
- Dividends (Management Shares) – If the distributing fund is Mauritius-resident, dividends are exempt from tax in the manager's hands under the ITA. If the fund is non-Mauritian, the dividend constitutes foreign-source income for the Mauritius-based manager.
- Return of Capital (e.g., share redemption/buyback) – Exempt from income tax, as Mauritius levies no capital gains tax.
3. Under which conditions are the regime applicable?
N/A.
4. Who are the beneficiaries?
N/A.
5. Which types of funds are concerned?
The general income tax treatment described applies across both categories of investment funds recognised under Mauritius law CIS and Closed-End Funds (CEF).
6. Is carried interest subject to social security in your jurisdiction?
No.
7. Any other key information?
There are no capital gains tax in Mauritius, hence where carried interest is structured as a return of capital, it will be exempt from tax in the hands of the recipient.
