One of the main recommendations of the OECD’s Base Erosion Profit Shifting Project, namely Action 13, has been to implement a Country by Country Reporting (“CbC Report") in relation to Multinational Enterprises (“MNE") to allow exchanging countries to have detailed information about the global allocation of income and activities of the different entities forming part of MNEs.

Some key points about CbC Reporting in Mauritius

Threshold: This applies only to MNEs, having a turnover of at least 750 million Euros.

Jurisdiction:

• MNEs, by their very nature, constitute of numerous business entities.
• CbC Reporting is required where the Ultimate Parent Entity (“UPE") has its tax residence.
• Alternatively, CbC Reporting will be performed where the Surrogate Parent Entity (“SPE") is resident.
• Constituent Entities, i.e. entities which are neither UPEs nor SPEs, will have to file a notification where they are tax resident. We would expect most Mauritius entities forming part of a relevant MNE group to fall within the latter scenario.

Timing: The filing of CbC Report or any notification shall be done no later than 12 months after the last day of the reporting fiscal year (accounting year) of the MNE group. The current regulations applicable to CbC Reporting (“CbCR Regulations") shall be effective for reporting fiscal years of MNE groups beginning on or after 1 July 2018.

Penalties: Failure to comply with any obligations under CbCR Regulations may lead to a fine of 5000 MUR with imprisonment of a term not exceeding 6 months. Penalties amounting to 10,000 MUR per month are also contemplated in case of further non-compliance. The total penalty may not however exceed 120,000 MUR.

If you need any assistance with any aspect of the CbCR Regulations currently in force in Mauritius, please do not hesitate to contact us. We are also able to provide assistance on CbC notifications/reports to be effected to the Mauritius Revenue Authority.