Mauritius, a key financial hub in the Indian Ocean, has committed to global tax transparency standards, including the OECD’s Base Erosion and Profit Shifting (BEPS) initiative. Specifically, the country has adopted Country-by-Country Reporting (CbCR) requirements, which are aligned with BEPS Action 13. These regulations are designed to combat tax avoidance and ensure that multinational enterprises (MNEs) pay taxes in the jurisdictions where they operate. This guide is intended to help Chief Financial Officers (CFOs) and financial executives of businesses located in or operating through Mauritius understand if CbCR regulations apply to them and how to comply with these rules.

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Applicability of CbCR in Mauritius

Criteria for Reporting:

• CbCR requirements in Mauritius apply to multinational enterprise groups with consolidated annual revenues of 38.41 billion MUR or more in the previous fiscal year.
• The obligation to file a CbC report falls on the ultimate parent entity of an MNE group that is tax resident in Mauritius.
• If the ultimate parent entity is located in a jurisdiction that does not have CbCR obligations or does not exchange CbC reports, a surrogate parent entity in Mauritius may be required to file the report on behalf of the group.

Relevant Legislation:

• The CbCR requirements in Mauritius are established under the Income Tax (Country-by-Country Reporting) Regulations 2018, which implement the OECD’s BEPS Action 13.
• The legislation provides the framework for CbCR in line with international standards, ensuring that MNEs meet global tax compliance obligations.

Reporting Requirements

Information to be Reported:

• The CbC report must include detailed financial information for each tax jurisdiction where the MNE operates, including:
  • Total revenues (distinguishing between related-party and unrelated-party transactions)
  • Profit or loss before tax
  • Income tax paid and accrued
  • Stated capital and accumulated earnings
  • Number of employees
  • Tangible assets (other than cash or cash equivalents)
• The report must also provide a list of all the constituent entities within the MNE group, specifying the jurisdiction of each entity and its main business activities.

Form and Submission:

• The CbC report must be submitted electronically using the format prescribed by the OECD, typically XML.
• Filing is conducted through the Mauritius Revenue Authority (MRA)‘s e-filing platform, which facilitates online submission of the required information.
  • For detailed submission procedures, visit the Mauritius Revenue Authority (MRA) website.

Filing Deadlines

• The CbC report must be submitted within 12 months after the end of the MNE group’s fiscal year. For example, for a fiscal year ending on 31 December 2023, the CbC report must be filed by 31 December 2024.
• Additionally, MNEs that are not the ultimate parent entity but have reporting obligations in Mauritius must notify the MRA about the entity responsible for submitting the CbC report. This notification must be made before the end of the fiscal year.

Penalties for Non-Compliance

Penalties:

• Mauritius imposes penalties for non-compliance with CbCR regulations, including:
  • MUR 500,000 (approximately €10,000) for failure to file a CbC report.
  • Additional penalties may be applied for filing inaccurate information or failing to notify the authorities about the entity responsible for CbC reporting.
  • Continued non-compliance may result in further sanctions, including interest charges and audits.

Defences:

• MNEs can present reasonable cause for failing to comply with the CbCR obligations, such as technical errors or unexpected delays. Each case is assessed by the Mauritius Revenue Authority on its merits.

Confidentiality and Use of Information

Data Protection:

• CbC reports filed in Mauritius are treated as confidential and will not be publicly disclosed. The information is used strictly for tax risk assessment and not for determining actual tax liabilities.
• The Mauritius Revenue Authority exchanges CbC reports with other tax authorities under the Multilateral Competent Authority Agreement (MCAA), ensuring that information is shared only with jurisdictions that meet international standards on confidentiality and data security.
• This data exchange helps ensure that MNEs are paying taxes in the appropriate jurisdictions, reducing the risk of base erosion and profit shifting (BEPS).