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If you are asking what the Mauritius trust tax rate is, the short answer is a single rate: the Income Tax Act 1995, as consolidated by the Mauritius Revenue Authority (MRA) up to the Finance Act 2026, charges a trust on its taxable income at the rate set in Part IV of the First Schedule, which is 15%. What matters in practice is less the rate itself than the rules around it: who counts as the taxpayer, what has been repealed, and how a payment to a beneficiary is characterised.
This page covers trust income tax in Mauritius at the level of the rate and its mechanics. For the wider picture, see how trusts are taxed in Mauritius.
The headline rate at a glance
15%
Rate on a trust's taxable income (First Schedule, Part IV)
Source: Income Tax Act 1995, consolidated up to the Finance Act 2026
15%
Rate on a foundation's taxable income (section 49A)
Source: Income Tax Act 1995, consolidated up to the Finance Act 2026
Repealed from 1 July 2021
Non-resident trust exemption (section 46(3))
Source: Income Tax Act 1995, consolidated up to the Finance Act 2026
The figures above come from the consolidated Act published by the MRA, which is the reference text for the 2026-27 rates. As always, the position of a particular trust depends on its facts, and a tax adviser should confirm it.
How trust income is charged
The Act treats a trust as chargeable in its own right. Its taxable income, calculated under the ordinary rules of the Act, is taxed at the Part IV rate. That is the same 15% that the Act applies as the standard rate for companies, which is why the two are sometimes confused. They are separate charges on separate taxpayers, even though the number is the same.
Two practical points follow:
- The charge falls on the trust's taxable income, not on the value of the trust fund. Holding assets in trust does not by itself produce a tax bill; income arising from them does.
- The trustee, not the settlor or the beneficiaries, is the person who deals with the trust's tax affairs. The trustee's duties are explained in duties of a trustee toward the family.
Does residence change the rate?
This is the question most readers have, and the answer changed in 2021.
The repealed exemption for non-resident trusts
Before the Finance Act 2021, section 46(3) of the Income Tax Act allowed a non-resident trust to be exempt if a declaration of non-residence was filed within three months of the end of the income year. The Finance Act 2021 repealed that provision, with deemed effect from 1 July 2021. The consolidated text up to the Finance Act 2026 no longer contains it.
Anything you read that still describes a filing-based exemption for a non-resident trust is describing the law as it stood before that date. Treat such material as historical.
What section 46(2) still does
Section 46(2) continues to identify two kinds of trust:
- a trust whose settlor is non-resident (or holds a Global Business Licence) and all of whose beneficiaries are non-resident (or hold a Global Business Licence); and
- a purpose trust whose purpose is carried out outside Mauritius.
The provision no longer takes these trusts out of the charge: they remain taxed at the same 15% Part IV rate. In other words, the identity of the settlor and the beneficiaries still matters for classification, but it no longer buys a lower rate or an exemption.
If you came across the phrase "offshore trust" and assumed it meant lower tax, Offshore Trust: What It Means in Mauritius explains the term more carefully.
Distributions to beneficiaries
Under section 46(4), any distribution to a beneficiary of a trust is deemed to be a dividend in the beneficiary's hands. The former paragraphs 5 and 6, which dealt with a deduction for income distributed and an exemption for a non-resident beneficiary, have been removed.
The practical effect is that the rules no longer treat a payment out of the trust according to the nature of the underlying income (rent, interest, capital gain). It is treated as a dividend by the Act's own wording. How that dividend is then taxed, if at all, in the beneficiary's hands depends on the beneficiary's own position, including where they are resident. That second step is covered in tax on distributions to beneficiaries and, for those living abroad, tax for non-resident beneficiaries.
The sourced rules do not support any shortcut such as "the trust pays, so the beneficiary pays nothing", and this page does not suggest one.
Trusts compared with foundations and charities
| Structure | Rate on taxable income | Treatment of distributions | Notes |
|---|---|---|---|
| Trust | 15% (First Schedule, Part IV) | Deemed a dividend for the beneficiary (s. 46(4)) | Non-resident exemption in s. 46(3) repealed |
| Foundation | 15% (Part IV, via s. 49A) | Treated as a dividend for the beneficiary | Exemption for non-resident foundations (s. 49A(2)-(3)) repealed |
| Charitable trust or charitable foundation | Listed among exempt bodies | Not applicable in the same way | Second Schedule, Part I of the Act |
The foundation exemption was repealed by the same Finance Act 2021, again with deemed effect from 1 July 2021. If you are weighing the two vehicles, how foundations are taxed in Mauritius goes further, and the broader comparison is in trust vs foundation.
Charitable structures are a different subject and are handled elsewhere; the point here is only that the Act lists charitable trusts and foundations among exempt bodies.
A quick way to place your trust
Is the trust's purpose exclusively charitable?
Is the settlor non-resident and are all beneficiaries non-resident?
Does the trust receive taxable income in the year?
This is a way of organising the questions, not an opinion on any particular trust. Exemptions turn on detailed conditions, and a charity's status is not decided by a label.
What the rate does not tell you
Residence of the trust is not a free choice
A trust is not a company, so the company residence tests do not transfer to it automatically. For companies, the Act treats an entity as resident if it is incorporated in Mauritius or if its central management and control are there. A company incorporated in Mauritius but centrally managed and controlled elsewhere is treated as non-resident but must still file a return. Those tests are useful context when a trust holds a company, because the company is a separate taxpayer from the trust.
A person who needs to prove Mauritian residence can apply to the Director-General of the MRA for a Tax Residence Certificate, which is to be issued within 7 days of the application, provided the required return has been filed and the fee paid.
Underlying companies are taxed separately
Many family trusts own shares in a company. Dividends paid by a Mauritian-resident company are exempt from income tax in the recipient's hands under the Second Schedule, and no withholding tax is provided for on them. That is a rule about the company and the recipient. It does not change the 15% rate that applies to the trust's own taxable income, and it does not mean the whole structure is untaxed.
The rate is only part of compliance
A trustee has to keep accounts and records up to date, and a register of the names and last known addresses of each beneficiary and settlor. This applies to a foreign trust administered from Mauritius as well. Accounting records must be kept for at least 5 years after the operations concerned are completed (section 38(3) of the Trusts Act 2001).
The Financial Services Commission (FSC) also keeps a register of trusts that have at least one qualified trustee, containing information such as the trust deed, the people involved and the governing law (section 26A of the Financial Services Act 2007). A qualified trustee, under section 2 of the Trusts Act 2001, is an FSC-licensed corporate service provider (Management Licence) or another Mauritius-resident person authorised by the FSC to act as trustee. The question of who can see that register is dealt with in Is There a Register of Trusts in Mauritius?.
Common misconceptions
- "A non-resident trust files a declaration and pays nothing." That was the position under the repealed section 46(3). It no longer applies.
- "Distributions to foreign beneficiaries are automatically exempt." The paragraph that provided a non-resident beneficiary exemption has been removed; distributions are deemed dividends.
- "A trust is a way to lower the rate." The rate is fixed by the Act and does not vary with the structure. For a balanced view of what a trust can and cannot do on tax, see Can a Trust Reduce Tax?.
Checklist before you rely on any figure
- Confirm which version of the Income Tax Act the source uses
- Check whether a provision has been repealed since the text was written
- Identify the residence of the settlor, trustee and each beneficiary
- Separate the trust's tax from the tax of any company it owns
- Ask an adviser how a distribution would be taxed in the beneficiary's country
If you would like your own situation looked at, use the enquiry form and your request will be passed to an FSC-licensed corporate service provider (Management Licence).
FAQ
What is the Mauritius trust tax rate?
The Income Tax Act charges a trust on its taxable income at the Part IV rate of the First Schedule, which is 15%. The reference text is the Act consolidated by the MRA up to the Finance Act 2026.
Is a non-resident trust exempt from tax in Mauritius?
Not under the current text. The exemption in section 46(3), which depended on a declaration of non-residence, was repealed by the Finance Act 2021 with deemed effect from 1 July 2021. Section 46(2) still describes trusts with non-resident settlors and beneficiaries, but they are taxed at the same 15% rate.
Does the rate depend on whether the beneficiaries live in Mauritius?
The rate on the trust's taxable income does not change with the beneficiaries' residence. Their residence matters at the next stage, when they receive a distribution and their own tax position is assessed.
How are distributions from a trust treated?
Under section 46(4), a distribution to a beneficiary is deemed to be a dividend for that beneficiary. Whether and how it is then taxed depends on the beneficiary's circumstances, so it should be reviewed with a tax adviser. See also Trust Tax Returns and Filing.
Are foundations taxed at the same rate as trusts?
Yes, under section 49A a foundation is taxable on its taxable income at the Part IV rate of 15%, and distributions to a beneficiary are treated as dividends. The foundation exemption for non-resident founders and beneficiaries was repealed at the same time as the trust one.
Are charitable trusts taxed at the same rate?
The Second Schedule, Part I of the Act lists charitable institutions, charitable foundations and charitable trusts among exempt bodies. Qualifying for that treatment depends on the trust meeting the legal definition of a charitable purpose, so it should be checked against the deed.
Does putting assets into a trust trigger tax?
That is a separate question from the annual rate on income. It depends on the type of asset and the transaction involved; see Tax When You Transfer Assets Into a Trust.
Can I rely on older articles that mention a lower rate or a filing exemption?
Treat them with caution. The main non-resident exemptions for trusts and foundations were repealed with effect from 1 July 2021, and the consolidated Act up to the Finance Act 2026 is the better reference.