Mauritius treaty and FATCA listing
Mauritius is not on the IRS income tax treaty list, but the Treasury FATCA agreements table lists it. The IRS also describes income tax treaties and their saving clauses.
Mauritius in the U.S. listings
The IRS A to Z list of U.S. income tax treaties does not list Mauritius among the countries shown in its country entries. A treaty's effects vary by country and by specific income item, and the IRS gives a general rule for income not covered by a treaty or where there is no treaty between a country and the United States.[3]
The Treasury FATCA agreements table lists Mauritius with status In Force (8-29-2014) and identifies its agreement as Model 1. Mauritius is treated as having an IGA in effect from 6-30-2014.[2]
These are separate listings for separate subjects.
How the IRS describes income tax treaties
An income tax treaty sets terms under which residents of a foreign country may receive reduced U.S. tax rates or exemptions for certain U.S. source income. The IRS says these terms vary among countries and types of income. Under those same treaties, U.S. residents or citizens may receive reduced rates or exemptions from foreign taxes on certain income from foreign sources.[3]
The FATCA agreement listing
Treasury describes FATCA as a reporting framework for foreign financial institutions. Those institutions report account information to the IRS for accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers have a substantial ownership interest. It says institutions may register directly with the IRS or comply with intergovernmental agreements treated as in effect in their jurisdictions.[2]
Reading the two listings together
Mauritius has no U.S. income tax treaty, but it has a Model 1 FATCA intergovernmental agreement in force.
In more detail
The IRS says most income tax treaties contain a saving clause. It preserves U.S. taxation of the worldwide income of U.S. citizens and residents, as if the treaty had not come into effect, subject to listed exceptions.[3]
Key points
For an income item not covered by a treaty, the IRS says tax applies in the same way and at the same rates shown in the applicable U.S. tax return instructions.[3]
Related reading
For Mauritius trust residence rules, see Mauritius Trust Tax and Reporting Rules, which covers local trust taxation and U.S. reporting. For cross-border reporting frameworks, see Mauritius reporting rules and U.S. foreign trust forms. For related jurisdiction references, see Seychelles and U.S. tax treaty information and Guernsey and U.S. tax agreements.
Questions and answers
Does the IRS treaty list show a U.S. income tax treaty for Mauritius?
The IRS A to Z list does not include a Mauritius country entry among its listed treaty countries. Income not covered by a treaty, or income where there is no treaty, is taxed using the applicable U.S. return instructions and rates.[3]
What does the Treasury FATCA table list for Mauritius?
It lists Mauritius as In Force (8-29-2014) and gives Model 1 as the agreement type. The same row shows 6-30-2014 as the date the jurisdiction is treated as having an IGA in effect.[2]
What is an income tax treaty in the IRS description?
The IRS says treaty terms may reduce U.S. tax or provide exemptions for certain U.S. source income received by foreign country residents. Treaty terms vary by country and income type, and U.S. residents or citizens may receive treaty treatment for certain foreign source income.[3]
What does FATCA reporting cover according to Treasury?
Treasury says foreign financial institutions report account information to the IRS for accounts held by U.S. taxpayers, or certain foreign entities in which U.S. taxpayers hold a substantial ownership interest. Institutions may register directly with the IRS or comply with an intergovernmental agreement treated as in effect in their jurisdiction.[2]
What does the IRS say when income is outside treaty coverage?
Where there is no treaty with the country, or the treaty does not cover the income type, the IRS says the income is taxed at the rates and under the instructions for the applicable U.S. tax return.[3]
Related resources
Related glossary terms
- Discretionary trust: A discretionary trust leaves distribution decisions to the trustee. It differs from a fixed interest trust and from a protective trust in who controls payments.
- Intergovernmental agreement: An intergovernmental agreement appears in FATCA rules for foreign financial institutions. Form 8938 instructions also use the term for certain foreign accounts.
- Participating foreign financial institution: The IRS describes a participating foreign financial institution as an FFI that reports U.S. account holders who are specified U.S. persons under FATCA.
Related articles and guides
- Mauritius reporting rules and U.S. foreign trust forms: Mauritius publishes CRS and beneficial ownership reporting rules. U.S. citizens who own or receive distributions from a foreign trust file the IRS forms.
- Mauritius courts and legal system structure: Mauritius has a two-tier judicial system. The Supreme Court hears first-instance cases and also hears appeals from subordinate courts across the country.
- Seychelles and U.S. tax treaty information: The IRS income tax treaty list and Treasury's FATCA table show what applies to Seychelles for U.S. citizens, and treaty rules vary by income item and country.
Tools and official documents
- Form 8938: specified foreign financial assets: Form 8938 reports specified foreign financial assets for U.S. citizens: reporting thresholds, asset definitions, required information, related forms and timing.
- FATCA agreement lookup: Look up any jurisdiction in the U.S. Treasury FATCA table and see its agreement model and status as the Treasury lists them, with a link to the source.
Related pages
- Mauritius: overview: Start page for this jurisdiction.
- Trust legislation
- Types of trusts
- Trustee regulation and licensing
- Taxation of trusts
Sources and data notes
- Mauritius Revenue Authority, Common Reporting Standard (CRS). https://www.mra.mu/index.php/business/crs?highlight=WyJkZWFkbGluZSJd. Retrieved .
- U.S. Department of the Treasury, Foreign Account Tax Compliance Act: agreements and understandings by jurisdiction. https://home.treasury.gov/policy-issues/tax-policy/foreign-account-tax-compliance-act. Retrieved .
- Internal Revenue Service, United States income tax treaties, A to Z. https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z. Retrieved .
- Internal Revenue Service, Foreign trust reporting requirements and tax consequences. https://www.irs.gov/businesses/international-businesses/foreign-trust-reporting-requirements-and-tax-consequences. Retrieved .
- Internal Revenue Service, Instructions for Form 3520. https://www.irs.gov/instructions/i3520. Retrieved .
Dates in this block record when each source was read for this page.