Edits & Curated by
Vishal Bhidu
The promulgation of the Double Taxation Avoidance Agreement with India (Amendment) Regulations 2026 has been agreed upon by the Cabinet chaired by Prime Minister Dr. Navin Ramgoolam on July 17.
It is to be recalled that the DTAA Protocol change was inked on March 7, 2024 between India and Mauritius, aiming to include:
(a) a paragraph in the Preamble section to reiterate the common intention of both countries to eliminate double taxation without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance;
b) an article on Entitlement to Benefits to prevent the abusive use of the DTAA, i.e., allowing either party to deny a benefit under the DTAA if one of the principal purposes of an investment is to benefit from the tax treaty (Principal Purpose Test).
During the recent visits of the Prime Minister to India, the matter was raised with PM Modi, who gave the assurance of the continued stand of India of not taking any action that would undermine the benefits enjoyed by Mauritius under the DTAA.
Subsequently, the Indian authorities have clarified their stand which is now favourable to Mauritius, thus, the decision to ratify the Protocol, which will be implemented on the date of notification to the Indian side following the completion of the ratification procedures.
The Income Tax (Qualified Domestic Minimum Top-up Tax) Regulations 2026 have also been agreed upon to be promulgated, where a Qualified Domestic Minimum Top-up Tax (QDMTT) was introduced in 2025 to comply with the Global Anti-Base Erosion rules and preserve the tax base.
Regulations will provide details on how to compute the effective tax rate, application of top-up tax, as well as the persons excluded from the application of the domestic minimum top-up tax.
A Memorandum of Understanding was also inked between the Financial Crimes Commission and Oversight and Anti-Corruption Authority of the Kingdom of Saudi Arabia where the objectives aim to: Strengthen cooperation and exchange of research and studies in areas on preventive measures for combatting corruption, and money laundering and related offences; Exchange information in respect of criminal methodologies and activities leading to corruption and the means to prevent them; and Conduct training courses, seminars, conferences and workshops in areas of investigation, enforcement and prosecution of corruption.
The Cabinet also took note of the publication, by the Data Protection Office, of the Guide on Data Protection for the Financial Sector in Mauritius. The Guide highlights how responsible data handling by stakeholders will help enhance the quality of service delivery and generate a positive chain reaction within the sector. It also disseminates knowledge on best practices and insights on data protection and aims at providing guidance on the processing of personal data performed by financial entities in order to ensure compliance with data protection principles under the Data Protection Act 2017.
Among other measures discussed is Mauritius acceding to the Convention on International Interest in Mobile Equipment (Cape Town Convention) and the Protocol on Matters Specific to Aircraft Equipment.
The Convention aims to set up an international legal framework for the creation, registration, and enforcement of security interests in high-value mobile equipment, including aircraft assets, while the Aircraft Protocol introduces an international registry system that provides creditors with enhanced protection and priority rights.
It will also enhance the attractiveness of Mauritius as a jurisdiction for aircraft leasing and aviation finance and align the country with international best practices adopted by leading aviation and financial centres worldwide.
Among other measures is the promulgation of the Education (Control and Use of Personal Mobile Devices on School Premises) Regulations 2026. The agreed measure seeks to establish a comprehensive legal framework governing the possession and use of personal mobile devices by students and staff on school premises, to strengthen discipline and well-being and improve educational outcomes across all primary and secondary schools.
Students will not be allowed use personal mobile devices on school premises without prior authorisation, except for documented medical reasons, or its use has been specifically authorised by a teacher for educational purposes.
Provisions have also been made for the teaching and non-teaching staff to refrain from using personal mobile devices in the presence of students, except when required for educational purposes or official duties, to lead by example.
