News › Weekly Alert Article

Service Fee for Tax Residence Certificate (TRC)

The Mauritian Budget 2013 announced that the imposition of a service fee for the issue of a TRC (ie, the amendment of Section 73 of the Income Tax Act 1995).

The Income Tax Regulations 1996 has also been amended by the proposed amendments (Income Tax (Amendment) Regulations 2013), through the introduction of Regulation 20A. Taxand Mauritius details these changes and their impact on multinationals.

Regulation 20A provides for a service fee payable in respect of every TRC issued under Section 73 (3) of the Act. This new, applicable fee will be as per the below:

  • USD 1000 for a CIS
  • USD 200 for any other entities

The fee is payable in respect of each TRC issued, so that if a company needs a TRC in respect of two treaties, the service fee is payable for a company other than a CIS, and will be USD 400. The Service fee is payable at the counter of the MRA upon confirmation from the Financial Services Commission (FSC) as prescribed by Circular 2006.

Your Taxand contacts for further queries are:
Gyaneshwarnath (Gary) Gowrea
T. +230 213 7684

Ryan Allas
T. +230 213 7695

Taxand's Take

The Regulations was published in the Government Gazette on 17 February 2013, and does not provide for a comencement date. The service fee will therefore be applicable in respect of all requests for TRC submitted to the FSC after 16 February 2013. Multinationals should be aware of this legislative update to ensure retrospective and current compliance.