{"id":319,"date":"2018-12-01T11:41:50","date_gmt":"2018-12-01T07:41:50","guid":{"rendered":"https:\/\/pro-mauritius.com\/?page_id=319"},"modified":"2019-11-22T15:35:53","modified_gmt":"2019-11-22T11:35:53","slug":"taxation-systems","status":"publish","type":"page","link":"https:\/\/pro-mauritius.com\/home\/taxes\/taxation-systems\/","title":{"rendered":"Taxation systems"},"content":{"rendered":"\n\n[et_pb_section fb_built=”1″ admin_label=”FAQ” _builder_version=”3.0.98″ custom_padding=”30px|0px|0|0px|false|false”][et_pb_row use_custom_gutter=”on” gutter_width=”4″ custom_padding=”0|0px|13px|0px|false|false” padding_top_2=”5%” _builder_version=”3.0.98″ animation_style=”fade” locked=”off”][et_pb_column type=”4_4″ _builder_version=”3.0.47″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.15″ text_font=”||||||||” header_font=”||||||||” header_2_font=”Times New Roman|700|||||||” header_2_font_size=”38px” header_2_letter_spacing=”1px” header_2_line_height=”1.4em” header_3_font=”Verdana|700||on|||||” header_3_text_color=”#edbb5f” header_3_font_size=”14px” header_3_letter_spacing=”1px” header_3_line_height=”2em” header_4_font=”||||||||” header_5_font=”||||||||” header_6_font=”||||||||” text_orientation=”center” max_width=”550px” module_alignment=”center” custom_margin=”0px||2px|” custom_padding=”0px||0px|”]

International Tax Laws<\/h3>\r\n

Systems for individual taxation<\/h2>\r[\/et_pb_text][et_pb_divider color=”#edbb5f” divider_weight=”2px” height=”2px” _builder_version=”3.15″ max_width=”60px” module_alignment=”center” custom_margin=”0px|||” custom_padding=”1px|||”][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”3.15″][et_pb_column type=”4_4″ _builder_version=”3.0.47″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.15″ text_font=”||||||||”]Broadly speaking, five different systems for the\u00a0taxation of the income of individuals can be found in the world.\r\n\r\nMauritius has a remittance-based taxation system which is very beneficial for expats who are tax-resident there.<\/strong>\r[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding=”27px|0px|0|0px|false|false” _builder_version=”3.15″][et_pb_column type=”1_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_blurb use_icon=”on” font_icon=”%%274%%” _builder_version=”3.15″ custom_margin=”-10px|||”][\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.15″ text_font=”||||||||” text_font_size=”20px”]Citizen-based taxation\r\n<\/strong>\r[\/et_pb_text][\/et_pb_column][et_pb_column type=”3_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.15″ text_font=”||||||||” ul_font=”||||||||” ul_line_height=”1.5em”]The citizen\u2019s\u00a0worldwide income will be taxed, regardless of country of residence.\r\n\r\nCountries:\r\n
    \r\n \t
  • The United States and Eritrea only<\/li>\r\n<\/ul>\r[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding=”5px|0px|0|0px|false|false” _builder_version=”3.15″][et_pb_column type=”4_4″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_divider _builder_version=”3.15″ custom_margin=”0px||0px|”][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding=”27px|0px|4px|0px|false|false” _builder_version=”3.15″][et_pb_column type=”1_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_blurb use_icon=”on” font_icon=”%%165%%” _builder_version=”3.15″ custom_margin=”-10px|||”][\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.15″ text_font=”||||||||” text_font_size=”20px”]Residence-based taxation\r\n<\/strong>\r[\/et_pb_text][\/et_pb_column][et_pb_column type=”3_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.15″ text_font=”||||||||” ul_font=”||||||||” ul_line_height=”1.5em”]The resident\u2019s\u00a0worldwide income will be taxed.\r\n\r\nCountries:\r\n
      \r\n \t
    • Most continental European and OECD countries<\/li>\r\n \t
    • Many other countries that are not expressively mentioned below<\/li>\r\n<\/ul>\r[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding=”5px|0px|0|0px|false|false” _builder_version=”3.15″][et_pb_column type=”4_4″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_divider _builder_version=”3.15″ custom_margin=”0px||0px|”][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding=”6px|0px|23px|0px|false|false” _builder_version=”3.15″][et_pb_column type=”1_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_blurb use_icon=”on” font_icon=”%%123%%” _builder_version=”3.15″ custom_margin=”-10px|||”][\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.15″ text_font=”||||||||” text_font_size=”20px”]Territorial taxation\r\n<\/strong>\r[\/et_pb_text][\/et_pb_column][et_pb_column type=”3_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.15″ text_font=”||||||||” ul_font=”||||||||” ul_line_height=”1.5em”]The resident\u2019s income in the country of residence will be taxed, while foreign income will not be taxed.\r\n\r\nCountries (most popular destinations only):\r\n
        \r\n \t
      • Europe: San Marino, Gibraltar<\/li>\r\n \t
      • Africa: Botswana, Namibia, Zambia, Seychelles<\/li>\r\n \t
      • Asia: Singapore, Hong Kong, Macau, Malaysia, Georgia<\/li>\r\n \t
      • Latin America: Costa Rica, Panama, Paraguay, Bolivia<\/li>\r\n \t
      • Caribbean: British Virgin Islands, Anguilla, Bermuda<\/li>\r\n<\/ul>\r[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding=”5px|0px|0|0px|false|false” _builder_version=”3.15″][et_pb_column type=”4_4″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_divider _builder_version=”3.15″ custom_margin=”0px||0px|”][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding=”8px|0px|0|0px|false|false” _builder_version=”3.15″][et_pb_column type=”1_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_blurb use_icon=”on” font_icon=”%%266%%” _builder_version=”3.15″ custom_margin=”-10px|||”][\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.15″ text_font=”||||||||” text_font_size=”20px”]Remittance-based taxation\r\n<\/strong>\r[\/et_pb_text][\/et_pb_column][et_pb_column type=”3_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.15″ text_font=”||||||||” ul_font=”||||||||” ul_line_height=”1.5em”]The resident will be taxed only on earnings generated in or money brought into the\u00a0country of residence.\r\n\r\nCountries:\r\n
          \r\n \t
        • Mauritius;\u00a0Cyprus (restrictions apply)<\/li>\r\n<\/ul>\r[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding=”8px|0px|0|0px|false|false” _builder_version=”3.15″][et_pb_column type=”1_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.15″ text_font=”||||||||” text_font_size=”16px”]Non-domiciled tax system\r\n<\/strong>\r[\/et_pb_text][\/et_pb_column][et_pb_column type=”3_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.15″ text_font=”||||||||” ul_font=”||||||||” ul_line_height=”1.5em”]The taxation is remittance-based as long as the foreign resident does not become domiciled.\r\n\r\nCountries:\r\n
            \r\n \t
          • United Kingdom, Ireland, Malta<\/li>\r\n<\/ul>\r\n \r[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding=”5px|0px|0|0px|false|false” _builder_version=”3.15″][et_pb_column type=”4_4″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_divider _builder_version=”3.15″ custom_margin=”0px||0px|”][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding=”6px|0px|22px|0px|false|false” _builder_version=”3.15″][et_pb_column type=”1_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_blurb use_icon=”on” font_icon=”%%48%%” _builder_version=”3.15″ custom_margin=”-10px|||”][\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.15″ text_font=”||||||||” text_font_size=”20px”]No direct taxation\r\n<\/strong>\r[\/et_pb_text][\/et_pb_column][et_pb_column type=”3_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.15″ text_font=”||||||||” ul_font=”||||||||” ul_line_height=”1.5em”]Residents do not have to pay any direct taxes.\r\n\r\nCountries (most popular destinations only): \r\n<\/strong>\r\n
              \r\n \t
            • Europe: Monaco<\/li>\r\n \t
            • Middle East: United Arab Emirates, Qatar, Oman, Kuwait, Bahrain<\/li>\r\n \t
            • Asia: Maldives, Brunei<\/li>\r\n \t
            • Caribbean: Bahamas, Cayman Islands, St. Kitts and Nevis, Antigua and Barbuda, Turks and Caicos Islands<\/li>\r\n \t
            • Pacific: Vanuatu, Nauru<\/li>\r\n<\/ul>\r[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding=”5px|0px|0|0px|false|false” _builder_version=”3.15″][et_pb_column type=”4_4″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_divider _builder_version=”3.15″ custom_margin=”0px||0px|”][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=”on” custom_padding=”0|0px|17px|0px|false|false” padding_top_2=”5%” _builder_version=”3.15″ animation_style=”fade” locked=”off”][et_pb_column type=”4_4″ _builder_version=”3.0.47″ parallax=”off” parallax_method=”on”][et_pb_text _builder_version=”3.15″ text_font=”||||||||” header_font=”||||||||” header_2_font=”Times New Roman|700|||||||” header_2_font_size=”38px” header_2_letter_spacing=”1px” header_2_line_height=”1.4em” header_3_font=”Verdana|700||on|||||” header_3_text_color=”#edbb5f” header_3_font_size=”14px” header_3_letter_spacing=”1px” header_3_line_height=”2em” header_4_font=”||||||||” header_5_font=”||||||||” header_6_font=”||||||||” text_orientation=”center” max_width=”550px” module_alignment=”center”][\/et_pb_text][et_pb_text _builder_version=”3.15″ text_font=”||||||||” ul_font=”||||||||” ul_line_height=”1.5em” ol_font=”||||||||” ol_line_height=”1.5em” custom_margin=”|||”]

              Of course, it is not as simple as that. There are hybrid schemes in place in some countries, and many exemptions in others. Some countries treat capital gains different from other sources of income. Some examples:<\/p>\n

                \n
              • In Mauritius<\/strong>, there is no capital gains tax (CGT). Other countries without CGT on securities include Singapore, Hong Kong, the Cayman Islands, Belgium, the Netherlands.<\/li>\n
              • In the UK<\/strong>, a Remittance Basis Charge has to be paid by non-domiciled persons who have been resident in the UK for at least seven out of the previous nine tax years.<\/li>\n
              • In Italy<\/strong>, you can vote for paying a lump-sum tax of 100,000 EUR per annum instead of paying taxes on your foreign-sourced income; capital gains, however, will be only tax-exempt after five years.<\/li>\n
              • Malta<\/strong> is currently changing its non-dom system in a way that non-domiciled persons will be subject to a minimum tax of \u20ac5,000 annually in Malta, but no tax would be payable on capital gains arising outside Malta irrespective of whether these are brought into Malta or not.<\/li>\n
              • The Philippines<\/strong> have a residence-based taxation of citizens, and a territorial taxation of foreigners.<\/li>\n
              • Monaco<\/strong> is tax-free except for French citizens.<\/li>\n<\/ul>\n

                Choosing a no-tax jurisdiction as country of residence with the goal of escaping high taxation of the home country can be a trap. Many countries, i.e. Germany, have subject-to-tax clauses in place which would give them the right to tax expats on their total income. Such clauses may even supersede the provisions of existing Double Taxation Avoidance Agreements.<\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”3.15″][et_pb_column type=”1_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][\/et_pb_column][et_pb_column type=”3_5″ _builder_version=”3.15″ parallax=”off” parallax_method=”on”][et_pb_button button_url=”https:\/\/pro-mauritius.com\/taxes\/” button_text=”Back to Taxes” _builder_version=”3.15″][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n\n","protected":false},"excerpt":{"rendered":"

                International Tax Laws Systems for individual taxation Broadly speaking, five different systems for the\u00a0taxation of the income of individuals can be found in the world. Mauritius has a remittance-based taxation system which is very beneficial for expats who are tax-resident there. Citizen-based taxation The citizen\u2019s\u00a0worldwide income will be taxed, regardless of country of residence. Countries: […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":221,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":""},"yoast_head":"\nTaxation systems of the world: an overview - Pro Mauritius<\/title>\n<meta name=\"description\" content=\"Overview on global systems for the taxation of individual income, and why Mauritius is so attractive for companies, entrepreneurs and investors\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pro-mauritius.com\/home\/taxes\/taxation-systems\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Taxation systems of the world: an overview - Pro Mauritius\" \/>\n<meta property=\"og:description\" content=\"Overview on global systems for the taxation of individual income, and why Mauritius is so attractive for companies, entrepreneurs and investors\" \/>\n<meta property=\"og:url\" content=\"https:\/\/pro-mauritius.com\/home\/taxes\/taxation-systems\/\" \/>\n<meta property=\"og:site_name\" content=\"Pro Mauritius\" \/>\n<meta property=\"article:modified_time\" content=\"2019-11-22T11:35:53+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/pro-mauritius.com\/home\/#website\",\"url\":\"https:\/\/pro-mauritius.com\/home\/\",\"name\":\"Pro Mauritius\",\"description\":\"One-stop Consulting for companies, entrepreneurs and expats relocating to Mauritius\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/pro-mauritius.com\/home\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/pro-mauritius.com\/home\/taxes\/taxation-systems\/#webpage\",\"url\":\"https:\/\/pro-mauritius.com\/home\/taxes\/taxation-systems\/\",\"name\":\"Taxation systems of the world: an overview - 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