|
 |
|
Trusts |
|
The Trust Act 2001 provides the legal framework for the establishment and creation of a wide variety of trusts in Mauritius, namely charitable trusts, discretionary trusts, purpose trusts and trading trusts.
Advantages
The advantage of a Trust is that its assets belong to the Trustees who can only manage and distribute those assets in the best interest of the Trust and of its beneficiaries.
The Trustee can pay to his account only fees and expenses that are agreed with the Settlor (i.e. the one who invested his Capital in the Trust initially).
The Trust offers a flexible instrument which protects the identity of the Settlor and of the beneficiaries to the Trust.
The establishment of Trusts can provide clients with the security and confidentiality they require regarding the management of the assets settled into the Trust.
Tax regime
Offshore Trusts can have access to Double Taxation Agreements and may be taxable at an effective rate of 3 per cent (after benefiting from the presumed tax credit of 80%), or they may lodge a declaration of ‘non-residence’ status for any income year with the Mauritius Revenue Authority, within 3 months after the expiry of the income year. This should enable them an exemption from income tax in respect of that income year.
A trust is liable to income tax at the rate of 15% if the Settlor is a non-resident. |
|
|
|
|