Mauritius is set to sign the Double Taxation Avoidance Agreement (DTAA) with the Hong Kong Special Administrative Region of the People’s Republic of China.

This DTAA, in line with the OECD and UN Model Agreements on Avoidance of Double Taxation, further complies with the OECD/G20 Base Erosion and Profit Shifting (BEPS) recommendations and comes as an opportunity to not only clarify the taxing rights of each country on income covered by the DTAA but also aims to:

• provide certainty to investors in their dealings with Mauritius or Hong Kong, as the case may be;
• create a conducive environment for greater cross-border investment flows between the two countries;
• establish a framework for exchange of information between the tax authorities of Mauritius and Hong Kong, with a view to combatting tax evasion and other tax malpractices; and
• provide a mechanism to taxpayers for the resolution of tax disputes

We will endeavour to provide you with more information on the signing of the DTAA with Hong Kong in due course. Stay tuned!