Tian Tang Meng Xi Incentives for SMEs and Startups
For small and medium-sized enterprises (SMEs) and startups, Mauritius's Budget 2026/27 introduces a package of incentives it calls the "Startup Revolution", aimed at making SMEs and startups the core engine of future economic growth. The key points of these incentives are set out below.
The heart of this round of support is the long-term incentive of a "ten-year tax exemption" plus the institutional safeguards of a Start-Up Act, supplemented by direct innovation grants and a more convenient service platform.
1. Top-level institutional design: "legislating" for innovative businesses
- Introducing a Start-Up Act: the government will enact a dedicated Start-Up Act, establishing a new, purpose-built regulatory and support framework for innovation-driven enterprises
- Building a dedicated ecosystem: it aims to create a complete dedicated start-up ecosystem, providing support from policy through to market
2. Core tax incentive: a ten-year tax exemption
- 10-year income tax exemption: qualifying startups can enjoy an exemption from corporate income tax for up to 10 years from the date they begin operations. The policy's intent to attract high-growth businesses is clear, but the exact definition of a "startup" is yet to be specified
3. Financing support and grants: real money behind the support
- Innovation Grants: an innovation scholarship programme will be established, providing qualifying startups with funding support of up to MUR 500,000 (about USD 10,600)
- A unified digital platform: a "SME Mauritius digital platform" will be set up, consolidating the various public assistance schemes, financing channels and support measures so that businesses can access information and resources in one place
4. Improving the business environment: lowering the operating bar
- Occupation Permit threshold and renewal adjustments: for self-employed persons, the annual turnover requirement is adjusted as follows: from the third year after registration, a minimum annual turnover of MUR 2 million (about USD 42,000) is required
5. Key points at a glance
| Policy tool | Core content | Who it applies to |
|---|---|---|
| Start-Up Act | Establishes a dedicated regulatory and support framework | Innovation-driven enterprises |
| 10-year income tax exemption | Corporate income tax exemption for up to 10 years from the date operations begin | Qualifying startups (criteria to be specified) |
| Innovation Grants | Funding support of up to MUR 500,000 (about USD 10,600) | Qualifying startups |
| SME Mauritius digital platform | A one-stop platform consolidating subsidies, financing and support measures | SMEs and startups |
| Turnover requirement for self-employed persons | Annual turnover of MUR 2 million (about USD 42,000) from the third year after registration | Holders of a self-employed Occupation Permit |
6. Conclusion
Overall, the support this budget offers to SMEs and startups centres on the long-term incentive of a "ten-year tax exemption" and the institutional safeguards of a Start-Up Act, supplemented by direct innovation grants and a more convenient service platform.
It should be noted that the criteria for being recognised as a "startup", the conditions for applying for grants, and the exact launch date of the digital economy platform all remain to be set out in official rules. Applicants planning to establish themselves in Mauritius by starting a business are advised to factor these policy variables into their business plan from the outset.
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