Tax News Update    Email this document    Print this document  

August 11, 2023
2023-1391

Hong Kong-Mauritius Double Taxation Avoidance Agreement enters into force in Mauritius from 23 June 2023

  • A double taxation agreement between Hong Kong and Mauritius, signed in late 2022, has come into force in Mauritius as of 23 June 2023.
  • Interest and royalties are subject to a lower tax rate under the agreement, creating the possibility of refunds for excess tax withheld in Mauritius.

The Double Taxation Avoidance Agreement between Mauritius and Hong Kong (HKMU DTA), signed on 14 September 2022 in Mauritius and on 7 November 2022 in Hong Kong, is deemed to have come into operation on 23 June 2023 in Mauritius and was executed by the Minister of Finance, Economic Planning and Development on 27 July 2023.

The agreement was gazetted in Mauritius on 8 December 2022, pursuant to Government Notice No. 316 of 2022, through the Double Taxation Avoidance Agreement (the Hong Kong Special Administrative Region of the People's Republic of China) Regulations 2022 and is supposed to be in operation on a date to be prescribed in the Gazette.

Mauritius has a tax year of 30 June, so that the HKMU DTA applies from 1 July 2023 for any withholding tax. Interest and royalties are subject to a lower rate of tax under the HKMU DTA and where the withholding tax has been computed using the 15% rate, the Mauritius Revenue Authority should be able to effectively refund the excess tax withheld, even if the tax may be deemed a final tax under the domestic tax laws of Mauritius.

The coming into force of the HKMU DTA automatically triggers the repeal of Article 9 of the Agreement between Hong Kong and Mauritius concerning Air Services signed in Hong Kong on 3 July 1998.

For background, see our EY Global Tax Alert on the HKMU DTA at the time it was signed, Hong Kong and Mauritius sign comprehensive double taxation arrangement, 13 December 2022.

———————————————

For additional information with respect to this Alert, please contact the following:

Ernst & Young (Mauritius), Ebene

Published by NTD's Tax Technical Knowledge Services group; Carolyn Wright, legal editor

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement