Collective Investment Schemes (CIS)

A CIS is a scheme which may be constituted as a company, a trust, a limited partnership or any other legal entity and whose exclusive purporse is the collective investment of funds in a portfolio of securities or financial assets, real property or non-financial assets. The operation of a CIS is based on the principle of risk diversification and which allow the shares or units holders to redeem their shares or units at net assets value. A CIS may also apply for a GBC 1 license.

CIS can be structured as:

  • A company
  • A trust
  • And other forms approved by the FSC
  • A protected cell company (PCC)
If they are controlled and managed in Mauritius can, with the approval of the Commissioner of Income Tax accede to the benefits of Double Taxation Agreements. A GBC 1 Company Licenced for fund business in Mauritius is liable to Mauritian taxation at a rate of 15% but after application of the provisions on foreign tax credit, the rate may be reduced to 3%.

There is no withholding tax on dividends, capital gains and interests. Supply of management services to an Investment Fund is exempt supply for Value Added Tax. Local advisory services including charges from the investment adviser is a taxable supply and is subject to the standard rate of Value Added Tax.