Inland Revenue (Double Taxation Relief with respect to Taxes on Income and Prevention of Tax Evasion and Avoidance) (Republic of Mauritius) Order (Cap. 112DS) (Version Date: 23/06/2023)

Following the announcement of a new double taxation order to implement the double taxation agreement between Hong Kong and the Republic of Mauritius signed in November 2022, the final order was now published on Hong Kong e-Legislation, the platform of the Department of Justice for publicizing legal documents.
The purpose of the order is to provide relief with regard to double taxation on income and on capital earned in each of the two countries (please also see EventID 18228 in this context for more information) and implements the following key provisions:
– taxes withheld in Mauritius will be credited towards taxes to be paid in Hong Kong on the same taxable source of income (for companies);
– Hong Kong residents employed in Mauritius will be exempt from Mauritius income tax subject to certain conditions;
– interest and loyalty income of Hong Kong residents derived from investments in Mauritius will be taxed at a rate of 5% in Mauritius; and
– profits from international shipping activities „arising in Mauritius will not be taxed in Mauritius.“
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The order came into force on June 23, 2023 and will apply to tax years beginning on or after April 1, 2024.