Monday, March 17, 2025 | 12:57 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

A new clause in Mauritius income tax law poses headache to Indian investors

Experts believe the SOP will make it more difficult to obtain a TRC from the Mauritian authorities

A judge hitting gavel with paper at wooden table. (Photo: Shutterstock)
Premium

A judge hitting gavel with paper at wooden table. (Photo: Shutterstock)

Ashley Coutinho Mumbai
Mauritius has amended its Income Tax Act and inserted a clause for determining the place of effective management. This makes it difficult to establish residency in the country and poses a new headache to Indian private equity as well as portfolio investors putting money into the country.  

The Mauritius Revenue Authority (MRA) issued a Statement of Practice (SOP) on November 28, with regard to Section 73A of the Income Tax Act on place of effective management. The place of effective management is part of the international best practices, aimed at ensuring that sufficient economic activity happens in a particular country. 

Experts believe

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in