Port Louis, April 9 (IANS) Mauritius remains compliant to international norms and best practices as it continues to drive quality investments into India, the Indian Ocean island country’s Economic Development Board (EDB) said on Tuesday.
“Mauritius is compliant with all OECD (Organisation for Economic Co-operation and Development) norms, including the Global Forum on Transparency and Exchange of Information for Tax Purposes, the Base Erosion and Profit Shifting project, and the Common Reporting Standard,” it said in a statement.
“Mauritius is also not on the blacklist of the European Union,” the EDB added while clarifying some of the misconceptions reported in media on the recent amendments in India’s Double Taxation Avoidance Agreement (DTAA) with Mauritius.
The EDB Mauritius, in its advisory, said the signing of DTAAs forms an integral part of any government’s action in implementing the most enabling framework supportive for foreign direct investment (FDI).
“FDI is one of the most stable forms of foreign capital, without risks linked to national debt. And a DTAA removes the risk of double taxation which can occur when investors engage in cross-border investments,” it explained.
Further, a DTAA lays down the taxing rights of the two countries and the model DTAA of Mauritius is based on the OECD model, it added.
Highlighting the role of Mauritius in “driving quality investments” in India, it said investments through Mauritius into India over the years “have gone in productive and sustainable sectors”, including healthcare, housing, infrastructure, telecommunications and education.
Even Indian companies have availed of the provisions of the DTAA to invest in Mauritius and through Mauritius into other emerging markets, the Board said.
Mauritius is a privileged trade partner of India, it said. Total imports from India to Mauritius amounts to nearly Mauritian Rupee (MUR) 30 billion, while exports from Mauritius to India is around MUR 512 million.
The Board emphasised that the companies operating in Mauritius are subject to stringent substance requirements including minimum of number of resident directors, full time employees, expenditure and principal bank accounts in Mauritius.
“Mauritius is committed to fully collaborate with international norm-setting organisations at all levels,” it added.