Foreign income means income derived from outside Mauritius. It shall include emoluments, directors’ fees, annuity, and pension in respect of past services, business income, rental income, investment income and interest income. The foreign income is taxable in the hand of the resident.
Resident individual ,means a person who has his domicile in Mauritius unless his permanent place of abode is outside Mauritius or has been present in Mauritius in that income year, for a period of, or an aggregate period of 183 days or more; or for an aggregate period of 270 days or more in the 2 preceding income years.
When the residence rule criteria is satisfied then the resident individual will be subject to income tax in Mauritius on all his income derived in Mauritius or remitted to Mauritius. Furthermore, he will be entitled to Income Exemption Threshold (IET).
Where a person wishes to be certified as a resident in Mauritius in respect of an income year, he should apply to the Director –General for a Tax Residence Certificate.
Nonresidents will only be subject to income tax on net income, derived from or accruing in Mauritius but he will not be entitled to Income Exemption Threshold (IET).