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Mauritius Signs DTAA With Zambia

Mauritius
Mauritius has signed a Double Taxation Avoidance Agreement (DTAA) with Zambia, which has entered into force 4 June 2012. Taxand Mauritius details what the DTAA will involve.

The main articles of the Mauritius - Zambia DTAA are:

Income Withholding tax rate (WHT) under DTAA WHT in Mauritius WHT in Zambia
Dividend 5% / 15%(1) Nil 15%
Interest 10% 10%(2) 15%
Royalties 5% 10% / 15%(3) 15%
  • (1) 5% applies where beneficial owner owns at least 25% of the company paying out the dividends/15% applies in
    all other cases.
  • (2) Applicable on payment to non residents/No WHT where payment is being made from a Global Business
    Company.
  • (3) 10% on payments to resident/15% on payments to non-residents/No WHT where payment is being made from
    a Global Business Company.

The Mauritius - Zambia DTAA does not contain a specific Capital Gains Article. However, Mauritius and Zambia do not impose capital gains tax. Further the Mauritius - Zambia DTAA provides for tax sparing credit and this will not dilute any incentive that has been given in Zambia. Other articles which follow the OECD model are in respect of Mutual Agreement Procedure and Exchange of Information articles.

Discover more: Mauritius and Zambia Sign DTAA


 

Your Taxand contact for further queries is:
Gary Gowrea
T. +230 213 7691
E. gary.gowrea@cim.mu

 

Taxand's Take

To date, a total of 17 DTAAs (out of which 14 have been ratified) and 19 IPPAs have been signed with African countries by Mauritius. With this growing number of bilateral agreements, Mauritius is positioning itself an international financial centre in order to consolidate its aspirations to be an investment gateway into Africa.