With the fresh support of the newly-elected US administration, a proposal for a Global Minimum Tax Rate recently gathered further momentum among OECD countries. On 6 May 2021 the MBA organised a webinar with Mr. Mario Hannelas, Technical Advisor to the Director General of the Mauritius Revenue Authority & former Director of the Large Taxpayer department, to talk about recent changes to international taxation, and their potential impact on Mauritius.
He explained that under the Pillar 1 of the BEPS initiative, a number of mechanisms had been put in place to reduce tax avoidance by global digital firms; under Pillar 2, the OECD was looking at introducing a minimum rate of tax to reduce jurisdictional arbitrage by multinationals. The combined effect of both Pillars would have far reaching consequences for the largest US and EU taxpayers. However, in his view, these developments should, under their current form, have a minimal impact on the business of banks present in Mauritius. The MBA continues to closely monitor developments in global fiscal policy.