1. India/Mauritius tax treaty

The Central Board of Direct Taxes, India has, by way of a notification published in The Gazette of India on 31 March 2026, clarified the application of the tax rules in respect of investments made prior to 1 April 2017, effectively reaffirming the grandfathering protection historically available to such investments. In simple terms, income arising from the transfer of investments made before that date continues to benefit from a carve-out, notwithstanding the broader application of anti-avoidance provisions introduced thereafter.

This clarification is particularly significant when viewed against the backdrop of the recent Supreme Court decision in Tiger Global, where the Court emphasised substance and denied treaty benefits in the absence of genuine commercial presence. Taken together, these developments bring greater clarity and certainty. While India is clearly prepared to challenge structures lacking substance, it remains committed to honouring legitimate legacy investments. For investors and fund managers, this should be seen as a positive signal that certainty and protection continue to exist, provided that structures are properly established and commercially robust.

2. MRA Clarifies Tax Treatment of Remote Foreign Consultants

A recent Tax Ruling issued by the Mauritius Revenue Authority (MRA) provides timely and practical guidance on the tax treatment of payments made to non-resident consultants providing services remotely from outside Mauritius. In the case considered, an India-based consultant rendered services electronically to a Mauritian company under a retainer arrangement, with only limited presence in Mauritius (not exceeding 90 days annually). 

The MRA confirmed that no Tax Deducted at Source (TDS) or Withholding Tax (WHT) would apply in such circumstances, as the services were performed outside Mauritius. However, the ruling also highlights that the non-resident individual may still be required to comply with tax filing obligations in Mauritius, with taxation governed by the relevant provisions of the Mauritius–India Double Taxation Avoidance Agreement. 

This ruling reinforces a key principle for cross-border arrangements: while withholding tax exposure depends on where services are performed, businesses must remain mindful that treaty-based taxation and compliance obligations may still arise.

3. Enhancing Tax Dispute Resolution in Mauritius

The recent establishment of the Tax Appeal Tribunal, replacing the former Assessment Review Committee (ARC), marks a significant development in Mauritius’ tax dispute resolution framework. This reform signals a move towards a more formal, transparent and judicialised process for the determination of tax appeals, thereby enhancing confidence in the system for both taxpayers and investors. The introduction of the Tax Appeal Tribunal is expected to improve the quality and consistency of decisions, while providing a clearer procedural structure for challenging assessments issued by the MRA. Overall, this development should be viewed as a positive step towards strengthening the rule of law and reinforcing Mauritius’ position as a credible and reliable jurisdiction for international business.

4. Regulatory 

Mauritius has further consolidated its position as a credible and competitive international financial centre, having risen to 50th place globally in the Global Financial Centres Index (GFCI 39). This improvement reflects continued confidence in Mauritius’ regulatory framework, legal infrastructure and its role as a gateway for cross-border investment, particularly into Africa and Asia. Notably, Mauritius remains one of the leading financial centres in Africa, underscoring its strategic importance for structuring investments, funds and regional headquarters. This progression is a positive signal to investors and institutions alike that Mauritius continues to evolve as a well-regulated, stable and internationally recognised jurisdiction for global business.

5. AML/CFT Reform Bill

A new Anti-Money Laundering, Combatting the Financing of Terrorism and Countering Proliferation Financing (Miscellaneous Provisions) Bill 2026 has recently been introduced in Parliament, signalling a further step in Mauritius’ ongoing efforts to align its legal and regulatory framework with international standards, including the FATF Recommendations, ahead of the country’s upcoming mutual evaluation. The Bill proposes amendments across a wide range of legislation, including the Financial Services Act, Trusts Act, Companies framework and other sector-specific laws, reflecting a comprehensive and coordinated approach to tackling financial crime.

At its core, the Bill seeks to enhance transparency, strengthen supervisory and enforcement powers, and improve coordination between authorities, both domestically and internationally. Key measures include expanded investigative powers to enable authorities to more effectively trace and seize assets linked to financial crime, enhanced beneficial ownership reporting requirements for companies, trusts and foundations, and increased powers for the Financial Intelligence Unit, including the ability to suspend suspicious transactions for a defined period. The Bill also introduces mechanisms for greater exchange of information between regulators and foreign counterparts and promotes the establishment of a centralised AML/CFT data system to improve data collection, risk assessment and policy response.

From a broader perspective, this reform is both timely and necessary. It reflects Mauritius’ commitment to maintaining its reputation as a clean, transparent and well-regulated international financial centre, while responding to increasing global expectations around beneficial ownership, cross-border cooperation and risk-based supervision. For industry participants, the Bill reinforces the importance of strong compliance frameworks and governance practices and should be viewed as a positive development that enhances the credibility and resilience of the jurisdiction in the global financial landscape.

6.    Accolade – Legal 500

We are pleased to highlight our law firm’s continued recognition in the Legal 500 rankings, reflecting the firm’s consistent commitment to delivering high-quality legal services across corporate, commercial and cross-border matters. This recognition underscores the strength of our team, the trust placed in us by our clients, and our growing presence in advising on complex transactions and regulatory issues, particularly in relation to Africa-focused investments. We remain committed to further strengthening our offering and continuing to support our clients with practical, solution-driven legal advice.