Double Taxation Agreement France Mauritius

It is not uncommon for a company or individual established in one country to make a taxable profit (profits, profits) in another country. That person may find that he is required under national law to tax that profit on the spot and to pay it again in the country where the profit was made. Because this is unfair, many nations enter into bilateral double taxation treaties. In some cases, this requires that the tax be paid in the country of residence and exempt in the country where it is produced. In other cases, the country where the profits are generated withdraws the withholding tax (« withholding tax ») and the taxpayer receives a compensatory foreign tax credit in the country of residence to reflect the fact that taxes have already been paid. To do this, the taxpayer (abroad) must declare himself a non-resident. A double taxation avoidance agreement allows in principle to deduct the tax paid in one of the two countries from the tax payable in the other and thus avoid double taxation. « Assets presented by immovable property within the meaning of Article 6 held by a person resident in France and located in Mauritius are taxable in Mauritius ». In principle, natural persons domiciled in France, regardless of their nationality, are subject to unlimited tax liability. Real estate belonging to them, whether in France or outside France, falls within the scope of the tax on property transfers (Tax on Real Estate Wealth – IFI). Article 23 of the Agreement provides that immovable property in Mauritius held by French tax residents does not fall within the scope of the FII. Investing in real estate in Mauritius can be an attractive solution to reduce IFI income taxes, as Mauritian real estate is not part of the IFI`s taxable wealth for French residents.

Only the bilateral agreements concluded between France, Argentina, Finland and the Netherlands contain provisions similar to the Franco-Mauritian tax provision and allow French residents not to declare to the IFI the real estate they own in these countries. As the Mauricie does not tax assets, as we have seen, Mauritian property will not support the French IFI and will not support the taxation of heritage in the Mauricie. The countries with which France has concluded double taxation treaties (DTAs) are listed below: « Profits received by a French resident on the sale of immovable property in accordance with Article 6 and located in Mauritius are taxable in Mauritius ». In particular, capital gains realized on the resale of Mauritian real estate are taxed on the Mauritian tax base, which is 0%. There is therefore no income tax on capital gains when reselling real estate in Mauritius. As a reminder, in France, real estate capital gains are taxed at the proportional rate of 19% plus social security contributions, for a total taxation of up to 34.5% (excluding the deduction for the duration of holding, if applicable). Mauritius has differentiated itself through agreements with many African countries where such networks do not exist. In this regard, Mauritius has quickly become an international platform for companies wishing to expand their business on the continent, but also because of its tax treaty with India, which has made Mauritius the largest foreign investor in India. Therefore, investment in Mauricie is a gateway to global investment projects. A tax treaty (or double taxation treaty) is a treaty between two countries to avoid or mitigate double taxation of individuals and businesses between those two countries. In particular, tax agreements tend to reduce the taxes of one contracting country for residents of the other contracting country, in order to reduce the double taxation of the same income.

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