Mauritius has actively positioned itself as an African and Indian Ocean hub for fintech and cryptocurrency businesses. 

They recently enacted the Virtual Asset and Initial Token Offering Services Act in 2021 (VAITOS Act), establishing a licensing regime for virtual asset service providers (VASPs) supervised by the Financial Services Commission (FSC). The Mauritius Revenue Authority (MRA) treats cryptocurrency as a financial instrument for income tax purposes.

Capital Gains Tax Rules

Mauritius does not impose capital gains tax for gains on transactions involving cryptocurrencies. 

This is an explicit feature of the Income Tax Act 1995, which does not include capital gains within the definition of chargeable income. If an individual purchases cryptocurrency as a passive investment and later disposes of it at a profit, no Mauritius income tax liability arises on that gain. This treatment applies regardless of the size of the gain or the holding period.

The Business Activity Threshold

The absence of CGT does not mean that all crypto gains are tax-free in Mauritius. 

Where the nature of the activity crosses into a business, the proceeds become taxable business income at 15%. The MRA applies the general income tax principles of the ITA 1995 to determine whether activity constitutes a trade or business.

Factors relevant to this assessment include the frequency and volume of transactions, the existence of a trading infrastructure, whether the activity is the taxpayer’s primary source of income, and the degree of organisation and planning involved.

Individual passive investors who make occasional disposals of major cryptocurrencies are unlikely to be classified as conducting a business. However, taxpayers operating high-frequency trading bots, managing crypto portfolios for clients, or operating structured crypto trading desks within a Mauritius entity will be assessed as carrying on a business and will be taxed accordingly.

Record Keeping

Even in the absence of a CGT obligation, taxpayers with crypto holdings are advised to maintain records sufficient to demonstrate the passive investment nature of their activities if queried by the MRA. This includes records of acquisition date, cost, holding period, and disposal date and proceeds. 

Business entities must maintain full transaction records as part of their accounting obligations under Mauritius company law. The standard retention period for tax records in Mauritius is five years.

Income Tax Rules

Business income from cryptocurrency trading, exchange operations, or other commercially conducted crypto activities is subject to income tax at the flat rate of 15% under the Income Tax Act 1995. 

This rate applies equally to individual business taxpayers and to corporate entities. There is no tiered rate or sectoral surcharge specifically for crypto. The solidarity levy, which applies to individual taxpayers with chargeable income exceeding a specified threshold, may add to the effective rate for high-earning individual crypto traders.

Cryptocurrency received as employment income or in connection with professional services is taxable at market value at the date of receipt. Employees receiving crypto remuneration are subject to Pay As You Earn (PAYE) obligations through their employer, with the crypto valued in Mauritius Rupees at the prevailing rate on the payment date.

Corporate entities incorporated in Mauritius and registered with the MRA file corporate income tax returns and are taxed at the 15% corporate rate on net chargeable income from crypto activities. Deductions for business expenses directly attributable to the crypto operation are available, including trading platform costs, compliance costs, and employee costs for FSC-licensed entities.

Mining and Staking Treatment

Mining

Cryptocurrency mining conducted on a commercial basis in Mauritius is treated as business income subject to the 15% income tax rate under general MRA guidance. 

The market value in Mauritius Rupees of mined tokens at the time of receipt constitutes gross income from mining. Business expenses directly attributable to the mining operation, including electricity, hardware, and facilities, are deductible in computing net chargeable income.

Mauritius’s relatively low electricity costs and business-friendly environment have attracted some mining operations to the island. Commercial miners operating under FSC licensing or as registered businesses must file income tax returns including their mining income.

 The subsequent disposal of mined tokens at a gain does not give rise to a CGT liability for a non-business holder, but where the mining entity also conducts trading as part of its business, any gain on disposal of mined tokens is part of the business’s taxable receipts.

Staking

As of 2025, the MRA has not published specific guidance on the tax treatment of staking rewards. By analogy with mining income, staking rewards received in the context of a commercially conducted operation would constitute business income at the market value of the reward tokens on receipt. For a passive individual staker, the absence of a general income tax on passive investment returns and the absence of CGT suggests that staking rewards may not be taxable, but this has not been confirmed.

As of 2025, Mauritius has not issued specific guidance on staking for individual participants. Given the low 15% rate even on business income, the practical difference between treatment as business income and non-taxation is contained, but clarity from the MRA would be beneficial for taxpayers making decisions about the structuring of staking activities in or through Mauritius.

NFT Taxation

Mauritius has not issued specific tax guidance on NFTs as of 2025. Applying the general income tax framework, NFT transactions that constitute a business activity are subject to 15% income tax on net profits. Individual passive NFT investors who are not conducting a business would not face income tax on disposal gains in the absence of a CGT regime.

NFT creators who regularly produce and sell NFTs in a commercial manner are conducting a business, and proceeds from sales are taxable business income. Expenses of creation, including minting fees, gas costs, and development costs, are deductible against this income. NFT investment funds or structures operating through Mauritius entities would be taxable on their trading income at the 15% corporate rate.

VAT on NFT transactions has not been specifically addressed by the MRA. General Mauritius VAT at 15% applies to taxable supplies made by VAT-registered persons; whether NFT supplies constitute taxable supplies and what their place of supply is for VAT purposes are questions that have not been specifically resolved. As of 2025, Mauritius has not issued specific VAT guidance on NFT transactions.

Reporting Requirements

Mauritius individual taxpayers file annual income tax returns with the MRA if their income exceeds the minimum filing threshold. Business income from crypto activities is reported in the business income section of the return. Individuals with no taxable income from crypto (because their gains are passive investment gains not subject to tax) do not need to include those gains in their return, but maintaining records to support this position is advisable.

Corporate entities registered in Mauritius file annual corporate income tax returns and annual financial statements with the Registrar of Companies. FSC-licensed VASPs are subject to additional regulatory reporting to the FSC, including transaction volume reports and AML compliance returns. This regulatory infrastructure means the FSC and MRA have access to data on the activities of licensed crypto businesses.

Mauritius participates in the OECD Common Reporting Standard (CRS) and has signed the multilateral convention on administrative assistance in tax matters, enabling information exchange with a wide range of jurisdictions. Crypto businesses operating through Mauritius should factor this into their compliance planning, as transaction data may be shared with other tax authorities.

All amounts in tax returns must be expressed in Mauritius Rupees (MUR). Crypto-denominated transactions are converted to MUR using the exchange rate prevailing at the date of the transaction. Records must be retained for at least five years from the date of filing the relevant return.

Penalties

The MRA enforces tax compliance under the Income Tax Act 1995 and the Mauritius Revenue Authority Act 2004. Non-filing, underreporting of business income, and late payment of tax attract financial penalties and interest charges. The MRA has the power to raise additional assessments on undeclared income and to conduct audits covering multiple years where it suspects systemic non-compliance.

Interest accrues on unpaid tax at the prescribed rate from the date the tax fell due. For deliberate evasion, criminal prosecution is available under Mauritius law. The MRA’s audit focus has historically been on larger business taxpayers, but increasing regulation of the FSC-licensed crypto sector means that VASP operators and their principals are subject to heightened scrutiny.

Voluntary disclosure to the MRA before the commencement of an audit typically results in reduced penalty exposure. Taxpayers who have not declared crypto business income in previous years are encouraged to approach the MRA proactively and to regularise their position with the support of a registered tax adviser. Proactive engagement is consistently treated more favourably than compliance resulting from enforcement action.