{"id":1197,"date":"2025-10-02T07:52:08","date_gmt":"2025-10-02T07:52:08","guid":{"rendered":"https:\/\/iqeq.com\/mu\/?p=1197"},"modified":"2025-10-03T14:13:41","modified_gmt":"2025-10-03T14:13:41","slug":"mauritius-embraces-global-tax-reform-what-the-qdmtt-means-for-multinational-enterprises","status":"publish","type":"post","link":"https:\/\/iqeq.com\/mu\/insights\/mauritius-embraces-global-tax-reform-what-the-qdmtt-means-for-multinational-enterprises\/","title":{"rendered":"Mauritius embraces global tax reform: What the QDMTT means for multinational enterprises\u00a0"},"content":{"rendered":"
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By Feroz Hematally, Head of Tax, Africa, India and Middle East and Director of Tax and Mauritius<\/span><\/i>\u00a0<\/span><\/p>\n

Mauritius has taken a decisive step in aligning with the OECD\u2019s global tax reform agenda by introducing the Qualified Domestic Minimum Top-up Tax (QDMTT), effective from the 2025-26 fiscal year.<\/span>\u00a0<\/span><\/p>\n

This move reinforces the country\u2019s commitment to international tax transparency and positions it as a forward-looking jurisdiction in the evolving global tax landscape. But what does it mean for multinational enterprises (MNEs) operating in or through Mauritius?<\/span>\u00a0<\/span><\/p>\n

Understanding the global context: Pillar Two and the GloBE rules<\/h2>\n

The QDMTT is part of the OECD\u2019s\u202fPillar Two framework, which aims to ensure that large MNEs pay a minimum level of tax (15%) regardless of where they operate. The\u202fGlobal Anti-Base Erosion (GloBE) rules, released in December 2021, provide a common approach for implementing this global minimum tax.<\/span>\u00a0<\/span><\/p>\n

Mauritius first introduced the GloBE rules through its\u202fFinance Act 2022, with implementation measures detailed in the\u202fFinance Act 2025. The QDMTT is Mauritius\u2019 domestic mechanism to ensure that the minimum tax is collected locally, rather than ceded to other jurisdictions.<\/span>\u00a0<\/span><\/p>\n

Who will be affected?<\/h2>\n

The QDMTT applies to\u202fresident entities\u202fthat are part of an MNE group with\u202fconsolidated annual revenue of at least EUR 750 million\u202fin\u202ftwo or more of the four fiscal years\u202fpreceding the year in question.<\/span>\u00a0<\/span><\/p>\n

However, certain entities are\u202fexcluded, including:<\/span>\u00a0<\/span><\/p>\n