Tax System Comparison: Singapore and Mauritius

 Tax System Comparison: Singapore and Mauritius 

Mauritius Tax System Overview

Mauritius operates a residence-based tax system with low and simplified rates. It is known for its investor-friendly tax regime, no capital gains tax, and extensive double tax treaties. Tax rates  for resident  were  flat rate 10%a and Non-resident its 15%.taxable income incudes salary ,rent and interests .Also there is no tax on Capital Gains 

In case of corporate taxation 15% flat rate and Global Business Companies may enjoy special regimes. Foreign income taxed if received in Mauritius also it is having almost 45+ double tax treaties in which India is a member

Singapore 's tax system Overview

Singapore 's tax system is designed to be competitive and business-friendly, with low tax rates and various incentives to attract investment. Singapore follows a progressive tax system, where higher earners pay a higher percentage of tax.

 The highest personal income tax rate is 24% for incomes exceeding SGD 1,000,000.Their taxable incomes include salaries and wages, bonus and commissions, directors fee rental income and some categorized pensions.

INDIVIDUAL INCOME TAX
Feature	Mauritius	Singapore
Tax Residency Criteria	Resident	Resident
Tax Rate (Residents)	Flat 10% (from 1 July 2023)	Progressive: 0% to 24%
Tax Rate (Non-Residents)	15% or flat 10% on specific income types	Flat 15% or resident rates (whichever is higher)
Taxable Income	Worldwide income (residents); Mauritius-source (non-res.)	Singapore-source only; foreign income taxed if received in SG
Tax Deductions/Reliefs	Basic personal reliefs only	Wide range: earned income, spouse, child, CPF, etc.
Capital Gains Tax	No	No
Social Security Contributions	Compulsory National Pension Fund	CPF (only for citizens/PRs); not applicable to foreigners

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 2. CORPORATE INCOME TAX

Feature	Mauritius	Singapore
Corporate Tax Rate	15% standard Effective rates can be reduced to 3% or lower (partial exemption, tax credits)	17% standard Effective rates lower due to partial exemptions
Tax Residency	Company controlled and managed in Mauritius	Company managed and controlled in Singapore
Scope of Tax	Worldwide income (residents); Mauritius-source (non-res.)	Singapore-source income; foreign income taxed if remitted
Capital Gains Tax	No	No
Withholding Tax (Dividends)	None	None
Withholding Tax (Interest/Royalties)	15% (some treaties lower this)	15% on interest, 10% on royalties (treaty relief available)
Dividend Tax	No (Mauritius has no dividend distribution tax)	No (one-tier tax system)
Double Taxation Relief	Yes (via tax treaties and unilateral relief)	Yes (tax treaties + unilateral relief)

3. BUSINESS ENVIRONMENT AND COMPLIANCE

Feature	Mauritius	Singapore
Ease of Doing Business	High (not as competitive as Singapore)	Consistently ranked among top globally
Filing Frequency	Annual return + tax return	Annual tax return; GST returns (quarterly/monthly)
Audit Requirements	Exempt under certain thresholds	Required if turnover > SGD 10 million
GST/VAT	15% VAT	9% GST (as of Jan 2024)
Incentives & Tax Holidays	Tax holidays for global business companies	Pioneer incentives, IP incentives, Start-up exemptions

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4. SUMMARY

Category	Mauritius	Singapore
Tax Rates	Lower for individuals (flat 10%)	Lower effective corporate tax via exemptions
Tax System	Simple, flat rates	Progressive and incentive-driven
International Treaties	Over 45 DTAs	Over 90 DTAs
Best for	Offshore structures, low-income individuals	Regional HQs, start-ups, tech companies

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Conclusion

• Mauritius is more beneficial for offshore structuring and high-net-worth individuals seeking flat tax rates and simplicity.

• Singapore is better for operational headquarters, start-ups, and businesses seeking international credibility, legal robustness, and tax incentives.

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