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Global Business:
Trust |
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The legal framework for Trusts
in Mauritius is the Trusts Act 2001, which is a simplified and
flexible piece of legislation designed to suit the Settlor’s
wishes. This Act allows for various types of trusts such as
protective or spendthrift trust, charitable trust, purpose trust,
discretionary or any other type of trust.
Key Features
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Anti-forced heirship rules |
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Possibility to accumulate income for any period within the duration of the trust |
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May apply for GBC 1 licence but not
for GBC 2 Licence |
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Foreign trust, complying
with the Mauritian Law may
be registered in Mauritius |
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Letters of wishes may originate from the settlor or any beneficiary under the Trust |
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Confidentiality as no registration is required |
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Protector with power to appoint and dismiss trustees recognized |
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Requirements
Settlor
The Settlor shall not at any time in the trust’s duration be
a resident of Mauritius.
The Settlor may also be a Trustee, Beneficiary, Protector or
Enforcer of the Trust but shall not be the sole beneficiary
of the trust.
Trustees
A maximum of FOUR trustees are allowed at any one time.
At least one trustee must be 'qualified' and authorised by the
FSC to act as trustee .
The Trust Deed may also provide for ‘Custodian Trustee’ in whom
the trust property will be vested whereas the trust will be
administered by the ‘Managing Trustee’.
Beneficiaries
The beneficiary can be a natural person or a corporate body
identifiable by name or by reference to a class whether or not
living at the time of the creation of the trust.
A settlor or trustee of a trust may also be a beneficiary but shall not at any time be the sole beneficiary of the trust.
Beneficiary’s interests are freely transmissible.
The beneficiaries may unanimously decide to terminate the trust.
Protector
A Protector may be appointed to supervise the trustees.
The Protector owes a fiduciary duty to the Beneficiaries.
The Protector may also be a settlor, a trustee or a beneficiary
of the trust.
Trust Property
The trust property shall not include any movable and immovable
property in Mauritius or any account in Mauritian Rupee in a
domestic bank.
Asset Protection
An offshore trust will not be void if the Settlor goes bankrupt
but the Court can declare it void if it was made with an intent
to defraud creditors.
Registration
The Trust Deed must be registered with the Registrar General.
The Registrar will not retain the Deed or any trust documents.
Taxation
Despite being registered in Mauritius, a trust can elect to
be ‘resident’ or ‘non-resident’* for income tax purposes in
a tax year in question. Application for Tax Residency Certificate
(TRC) should be made to the Commissioner of Income Tax.
* A ‘non-resident’ trust is exempt from income tax.
Non-resident beneficiaries of a 'resident' Trust are exempt from income tax on their income.
Individual resident are liable to income tax at the rate of 25% on his income.
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Individual resident if:
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has domicile in Mauritius unless permanent abode overseas or |
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present 183 days in a tax year or |
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present in a tax year and two preceding for 270 days. |
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Double Taxation Agreement
All trusts, which is tax
resident can enjoy the benefits of the Double Taxation
Agreements, which Mauritius has signed/ratified with some
32 countries.
Refer to DTA
Treaties.
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