TRUSTS & FOUNDATIONS

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TRUSTS

GENERAL FEATURES

A trust is a relationship whereby a party called a trustee holds property, for the benefit of other parties or persons, or for some purpose permitted by law.

Relevant laws: The Trust Act 2001, The Financial Intelligence and Anti-Money Laundering Act 2002 and The Financial Services Act 2007
No express provision for the registration of a Trust in Mauritius
Mitigation of effects of forced heir-ship (for non- Mauritian nationals)
Accumulation of Income over a period of time (not exceeding the maximum duration of the trust)
Where the trust property includes an immovable property situated in Mauritius, the accumulation period shall not exceed 25 years.
Charitable Purpose trusts can be of a perpetual duration
Subject to criteria, a trust can claim tax exemption annually

FOUNDATIONS

A Foundation is governed by the Mauritius Foundations Act 2012 and is a legal entity without members and with its own structure, the ownership of which is to achieve a certain specific purpose by means of contributions made. A Foundation enjoys legal personality which fulfils related functions as those of a trust, but with the administrative flexibility of a company.

The objects of a foundation may be:

Charitable or non-charitable, or both;
For the benefit of a person or a class of persons, or carry out a specified purpose, or both.

Charitable Foundation

A foundation shall be a charitable foundation where it has the following exclusive purpose or object:

the relief of poverty;
the advancement of education
the advancement of religion;
the protection of the environment;
the advancement of human rights and fundamental freedoms; or any other purpose beneficial to the public in general

Foundation Registration

A Mauritius Foundation is required to be registered and issued with a certificate of registration by the Registrar of Companies (ROC).

Foundation Council

Members of a Foundation Council have no personal title to a Foundation’s property, either as individuals or jointly as a body, and with no personal liability in the absence of fraud or negligence for any breach of that Foundation’s obligations.

Foundation Assets

The Foundation assets can consist of:

Real estate (commercial or residential)
Shares in companies, funds, unit trusts
Investments

Uses of Foundations

A Foundation created in Mauritius allows for, inter alia:

Asset protection and tax planning
Being recognised in all common and civil law jurisdictions
Holding assets which can be passed on from one generation to the next (estate planning)
Minimizing estate taxes or other inheritance taxes
Avoidance of forced-heirship rules
Maintenance of corporate control

Category 1 – Global Business Licence

A foundation may apply for a GBL1 with the Financial Services Commission should it wish to be tax resident in Mauritius for the purposes of accessing the network of Double Taxation Agreements.

Taxation

A Mauritius Foundation can elect to be non-resident by the Council filing a declaration to that effect with the Mauritius Revenue Authority (MRA) and be exempted from all income tax. All distribution made to non-resident beneficiaries of the Foundation are also exempt income tax.

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TRUSTS & FOUNDATIONS

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