Offshore Banking

Topics: Tax, Taxation, Tax haven Pages: 4 (968 words) Published: April 30, 2011
Located due east of Madagascar in the Indian Ocean, Mauritius can be described as one of the best-kept secrets in this part of the world.  This relatively unknown island certainly can be called a tax advantaged jurisdiction, aside from also being one of most beautiful places (and one of the least expensive) places to live.  The entire population of the country is about 1.2 Million, with 150,000 inhabitants occupying the friendly capital of Port Louis.  Although technically an English Commonwealth member (the country gained independence in 1968), it is interesting to see a very strong French influence as well. ..*|

A fairly new comer to the world of offshore banking & incorporations, Mauritius is quickly becoming recognized as a small but sound jurisdiction.  The Mauritius Offshore Business Activities Authority (MOBAA) regulates such matters as investments, trust services, trading and pooled or mutual fund programs.  Banking is regulated by a separate entity, namely the Bank of Mauritius, which acts as both regulatory body and the central bank.  The confidentiality act of 1992 covers such matters as privacy of client affairs and business transactions inside the country.  In addition, this tiny country does have its own stock exchange, and both open end or closed end mutual funds (investment pools) must be registered with the (and are regulated by) Stock Exchange of Mauritius, located in Port Louis. .

Both trust and company formation services are locally available, although some recent changes in the tax regulations no longer permit a 100% tax-free status with regards to offshore companies.  Any offshore company previously formed prior to July 1, 1998 still enjoys such an exemption, but companies formed after this date are liable for a 15% tax liability.  While such a tax liability is certainly more favorable that European or other taxation rates, it does mark a change from the previous full tax exemption. .

There are NO Estate or Inheritance tax...
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