How dividend tax works in Mauritius
Mauritius generally does not impose withholding tax on dividends paid by a resident company, and dividends from resident companies are exempt from income tax in the hands of shareholders. This is the core domestic dividend rule for individuals and companies.
A resident company receiving foreign dividends is generally taxed at 15%, but an 80% partial exemption can reduce the effective rate to 3% when the statutory conditions are met. The company must check the source-country treatment, substance and whether foreign tax credit is preferable.
Foreign dividends received by a resident individual fall into the resident foreign-income rules and can be taxable to the extent received in Mauritius, subject to exemptions, foreign tax credit and treaty relief. Non-resident shareholders may still have tax in their own country.
The wider withholding-tax system is easy to confuse with dividend tax. Interest paid to individuals and non-resident companies is generally subject to 15% withholding, while royalties are generally 10% for residents and 15% for non-residents.
The 2025/26 Fair Share Contribution included domestic dividends in the high-income threshold for qualifying individuals. From the 2026/27 income year, the 35% personal band replaces that transitional contribution, so the relevant income year matters.
Tax rates at a glance
- Dividends from resident companies
- 0% WHT and generally exemptStandard rule
- Foreign dividends to resident companies
- 15% before partial exemption
- Effective foreign-dividend rate
- 3% if 80% exemption conditions are met
- Interest withholding tax
- 15% in defined cases
- Royalty withholding tax
- 10% resident / 15% non-resident
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsHolding companiesFoundersFamily officesExpats
Watch out for
- A 0% Mauritian withholding rate does not make the dividend tax-free worldwide. The shareholder's residence country and the country where the company earned its profits may still tax the payment.
- The 3% foreign-dividend result is conditional, not automatic. Review the 80% partial exemption requirements and compare it with a documented foreign tax credit.
- Do not label interest or royalties as dividends. Mauritius has separate withholding rules for those payments, and the payer may have a TDS obligation even where no dividend WHT applies.
Frequently asked questions
Does Mauritius tax dividends?
Dividends from a Mauritius resident company are generally paid without withholding tax and are exempt in the shareholder's hands. Foreign dividends and the shareholder's residence country can produce a different result.
What is the withholding tax on dividends in Mauritius?
The domestic withholding tax rate on dividends is generally 0%. Interest and royalties are different: interest is commonly 15% in defined cases, while royalties are generally 10% for residents and 15% for non-residents.
How are foreign dividends taxed in a Mauritius company?
Foreign dividends are generally taxable at 15%, but an 80% partial exemption can produce a 3% effective rate when the conditions are satisfied. A company can instead consider foreign tax credit relief where appropriate.