The UK Mauritius Double Tax Agreement: What You Need to Know
For businesses and individuals operating in both the UK and Mauritius, it’s important to understand the implications of the double tax agreement between these two countries. The agreement was signed in 1969 and revised in 2009 to reflect changes in tax laws.
The purpose of the double tax agreement is to prevent individuals and businesses from being taxed twice on the same income. This is achieved by determining which country has the right to tax certain types of income. For example, income from employment is generally taxed in the country where the work is performed. However, there are exceptions and different rules apply depending on the type of income.
The double tax agreement also includes provisions for the exchange of information between tax authorities in the two countries. This helps to prevent tax evasion and ensure that individuals and businesses are paying the correct amount of tax.
One of the key benefits of the UK Mauritius double tax agreement is that it promotes investment between the two countries. For example, a UK business operating in Mauritius can benefit from reduced withholding tax rates on dividends, interest, and royalties. This makes it more attractive for UK businesses to invest in Mauritius and vice versa.
It’s important to note that the double tax agreement does not cover all types of income. It only covers income that is subject to tax in both countries. This means that if you have income that is only taxed in one country, you will still need to pay tax on that income in the country where it is taxable.
Overall, the UK Mauritius double tax agreement is an important tool for businesses and individuals operating in both countries. It helps to prevent double taxation and promote investment between the two countries. However, it’s important to seek professional advice to ensure that you are complying with all relevant tax laws.