India-Mauritius DTAA
Treaty signed: August 24, 1982 | Effective from: November 3, 1983
● Live · Rates served from /api/tax-rules/dtaa/MU
Dividends
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Interest
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Royalties
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Capital Gains
Fees for Technical Services
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Key Treaty Provisions
- 2016 Protocol amended the capital gains article - India now taxes capital gains on shares acquired after April 1, 2017
- Grandfathered shares (acquired before April 1, 2017) remain exempt from Indian capital gains tax
- Transition period April 1, 2017 - March 31, 2019: 50% capital gains tax (i.e., 7.5% effective LTCG rate)
- Full tax from April 1, 2019 on shares acquired on or after that date
- Mauritius Treaty Shopping historically used by FIIs and private equity - restricted by 2016 amendment
Frequently Asked Questions
Does India still tax Mauritius companies on capital gains from Indian shares?▾
Yes, for shares acquired from April 1, 2017 onwards. The 2016 amendment to the India-Mauritius DTAA removed the capital gains exemption. Shares held since before April 1, 2017 are grandfathered. Capital gains on immovable property in India have always been taxable in India.
What is the dividend withholding rate under India-Mauritius DTAA?▾
The dividend withholding rate is 5% under Article 10 of the India-Mauritius DTAA. This is one of the lowest dividend rates in any India DTAA, making Mauritius attractive as a holding company jurisdiction for Indian subsidiaries distributing dividends.
Is a Certificate of Residence from Mauritius sufficient to claim DTAA benefits?▾
A valid Tax Residency Certificate (TRC) from Mauritius Revenue Authority (MRA) is required. India's tax authorities look beyond TRC to examine substance - the Mauritius entity must have bona fide business activity and not be a conduit for treaty shopping. The MLI's Principal Purpose Test now reinforces this substance requirement.
Browse all articles
20 articlesArticle 1 of the India-Mauritius DTAA governs persons covered.…
Article 4 of the India-Mauritius DTAA governs resident.…
Article 5 of the India-Mauritius DTAA governs permanent establishment.…
Article 7 of the India-Mauritius DTAA governs business profits.…
Article 8 of the India-Mauritius DTAA governs shipping, inland waterways, and air transport.…
Article 9 of the India-Mauritius DTAA governs associated enterprises.…
Dividends paid by a company resident in one State to a resident of the other State may be taxed in the recipie…
Interest arising in one State and paid to a resident of the other may be taxed in the recipient's State, with …
Royalties paid to a resident of the other State may be taxed in the recipient's State; the source State retain…
FTS - payments for managerial, technical, or consultancy services - are taxed at the treaty rate where a speci…
Article 13 allocates taxing rights over capital gains between India and Mauritius.…
Article 14 of the India-Mauritius DTAA governs independent personal services.…
Article 15 sets the taxing rights for salaries earned by an employee of one State who works in the other.…
Article 17 of the India-Mauritius DTAA governs artistes and sportspersons.…
Article 18 of the India-Mauritius DTAA governs pensions.…
Article 19 of the India-Mauritius DTAA governs government service.…
Article 23 sets out the mechanism by which double taxation is eliminated - typically through a foreign tax cre…
MAP allows the competent authorities of India and Mauritius to resolve disputes - particularly transfer pricin…
Allows the competent authorities to exchange information necessary to apply the treaty or domestic tax laws.…
Treaty benefits are denied where the principal purpose of the transaction was to obtain them.…
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