The Manufacturing Sector in Mauritius

Category: About Mauritius

Driving Economic Transformation: The Manufacturing Sector in Mauritius

In recent decades, manufacturing has been crucial to Mauritius's efforts to diversify and modernize its economy. Continuous innovation in industries like textile and apparel production, agricultural processing, seafood processing, jewelry production, high precision and light engineering, gold refining and diamond polishing, metal fabrication, printing and packaging, paints and chemicals has earned Mauritius a reputation as a high-quality and reliable supplier. With a projected 13.2% contribution to GDP in 2021, manufacturing is a vital growth sector that supports close to 90,400 jobs.

As a result of preferential market access, Mauritius is able to export 2,502 different products to 142 different countries. Its primary export markets are the European Union, the United States, and South Africa.

Preferential Market Access is provided by Mauritius to the United States market via the Africa Growth Opportunity Act, the European Union market via the interim Economic Partnership Agreement, the countries of COMESA and SADC, and the countries of the Indian Ocean Commission, the African Continental Free Trade Agreement, the markets of Pakistan and Turkey via the Preferential Trade Agreement and the Free Trade Agreement, the Chinese market via the Free Trade Agreement, and the Comprehensive Economic Cooperation Agreement.

Food Processing Scheme, High-Tech Manufacturing Scheme, Small and Medium-Sized Enterprises (SMEs) International Fairs Refund Scheme, Trade Promotion and Marketing Scheme, Freight Rebate Scheme, and Export Credit Guarantee Insurance Scheme are just some of the government programs available to manufacturers.

The manufacturing sector also benefits from fiscal incentives, such as:

Profits from exports of goods are only taxed at 3%.
There are no tariffs on imported materials or machinery.
There are no export taxes in Mauritius, and investors in high-tech manufacturing equipment can receive an annual investment tax credit of 15% (or 45% spread out over three years).
Payable at customs clearance, but refunded upon export, VAT on raw materials
At the time of customs clearance, VAT is due on capital goods, but can be refunded upon return.
Up until June 2027, qualified R&D expenditures are eligible for a double tax deduction.
Tax breaks for 8 years on profits for investors in certain industries
Research and development costs incurred specifically for the African market can be deducted twice.
Industrial uses are exempt from the land conversion tax.
Promoters in qualified industries are exempt from paying Registration Duty and Land Transfer Tax when acquiring real estate for commercial use.
Premium Investor Certificate, Investor Certificate, and Export Development Certificate Incentives

Some incentives aren't monetary in nature:

A non-citizen may legally purchase real estate for commercial use.
Simplified processes for hiring foreign workers, with a work permit policy that allows foreigners in the manufacturing sector to stay for up to eight years.
Possession is not limited in any way: Foreigners may own all of a company.
Currency freedom: 20% tax exemption on remitted earnings, dividends, and capital Subsidy of 50% of the Export Credit Insurance Premium Margin of Preference for locally manufactured goods for non-SMEs, and up to 40% for SMEs
Machinery, equipment, and buildings used exclusively for manufacturing can all receive a 50% depreciation bonus for the first five years.
Storage Initiative in Africa

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2023-05-23 15:45:14

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