What is a Tax Residence Certificate (TRC)?
A TRC is a key document required to support eligibility for tax treaty relief which demonstrates the residency of the non-resident income earner. The TRC will confirm that the income earner is a resident of Mauritius in the tax year concerned for purposes of the tax treaty being invoked.
How to obtain a TRC?
A TRC is issued following an application made to the Director General of the Mauritius Revenue Authority (MRA).
What changed with regards to application for a TRC?
In order to simplify the issuance of a TRC, the MRA, in collaboration with the Financial Services Commission (FSC), implemented an electronic platform to streamline application for TRC.
The FSC issued a Revised Procedures for Online Application of Tax Residence Certificate (FSCTRC/17G201) (Revised Procedures) on 2 February 2021. A Management Company will have access to the electronic platform following its application and registration with the TRC Unit of the MRA.
Management Companies will now need to submit all applications for TRC for Category 1 Global Business Companies/Global Business Companies by means of the electronic platform and using credentials issued to the Management Company during the registration process. The same credentials will be used for first time application and renewal and/or reissue of TRC. The streamlined aspect of the electronic platform is an email notification with the application form attached upon receipt of application form for TRC and forwarded to the FSC for recommendation to the MRA. The Management Company will have the option to apply for a General TRC and/or country specific TRC for the benefit of Double Taxation Avoidance Agreement (DTAA).
Please note that the Revised Procedures for application of TRC does not alter the statutory criteria in respect of substance requirements to be met by the Applicant and the FSC will not recommend TRC applications which are inaccurate and incomplete. The FSC may revoke its recommendation if at any time the Applicant is found to be non-compliant with the substance requirements.
The Revised Procedures request Management Companies to apply for renewal of TRC at least 30 days prior to the expiry of the current TRC.
Lastly, the TRC Application Form should be saved in the Applicant’s file and made available to the FSC whenever required.
Reminder for innovation-driven activities
Companies involved in innovation-driven activities for IP assets developed in Mauritius and set up on or after 1 July 2017 benefit from an income tax exemption. The exemption will apply for eight tax years (tax holiday), starting from the tax year in which the company starts its innovation-driven activities.