Find Accountancy, Audit and Tax expertise in Mauritius
Mauritius has an established presence of almost all international accountancy networks, including the ‘Big Four’, various mid-sized enterprises and a host of medium and small accountancy and audit practices, numbering over 100 firms in total. The Companies Act 2001 made International Standards on Auditing (ISA) mandatory. Consequently, all public and private companies, except small private companies, are required to present their own and consolidated financial statements in accordance with ISA. As of 2005, the accounting standards regulators on Mauritius require that all listed and non-listed companies adopt International Financial Reporting Standards (IFRS). The rigour of the nation’s auditing system was the reflected in the World Economic Forum’s Global Competitiveness Report (2012-13), in which Mauritius placed 22nd in the world (out of 144 countries) for the strength of its auditing and reporting standards, with a value of 5.6 out of 7, above the world mean of 4.6. In the World Bank’s Ease of Doing Business Index it came 79th in the world for resolving insolvency, two places below South Africa.
All accountants in Mauritius are required to register with the Mauritius Institute of Professional Accountants (MIPA) and to follow the code of conduct prescribed by the International Federation of Accountants (IFAC). MPIA acts as an umbrella professional body for professional and public accountants who are members of professional accountancy institutions and associations. It represents over 1800 professional accountants and over 250 public accountants (2012). Accountants are mainly members of the Association of Chartered Certified Accountants (ACCA) in the United Kingdom, or are Chartered Accountants who qualified in the United Kingdom and other countries. There is no national requirement for auditors to have a ‘practice certificate’ so there is little monitoring of this side of professional practice.
Both personal income tax and company tax in Mauritius are set at a flat rate of 15% (tax year 2010-11). The tax regime in Mauritius is one of the least burdensome in the world. With its low tax jurisdiction and competitive business costs, commercial operations are affordable in relation to other emerging business sectors. Mauritius has also established over 30 tax treaties with different countries and is continually undertaking further negotiations. Value added tax (VAT) is charged at a standard rate of 15% on taxable goods and services. Exports are zero rated and certain items, such as basic foodstuffs and medical and educational services, are exempted. In the Ease of Doing Business Index the country placed 11th in the world in relation to paying taxes, the highest ranked sub-Saharan nation. Its total tax rate, calculated in the Global Competitiveness Report, is 25.0%, placing it 21st in the world.