On October 10, 2019, the Economic and financial Affairs Council of the EU, confirmed that Mauritius now complies with the "good governance tax principles" of the EU.
In removing Mauritius from their "Gray List," the EU confirmed that Mauritius had been removed from its list of nations that were classified as cooperative but remained subject to the implementation of measures to substantiate their dedication to adjust to the screening criteria of the EU.
The EU additionally confirmed that Mauritius, ahead of schedule, has truly enforced the required measures in order to comply with the EU tax good governance principles.
First, it has increased substance requirements and addressed concerns that there was a lack of anti-abuse rules through the introduction of rules regarding Controlled Foreign firms by the Finance (Miscellaneous Provisions) Act 2019.
Secondly, the Mauritian Government undertook measures to make sure that there was
a clear set up
the minimum standards of the Organisation for Economic Cooperation and Development (OECD) Base Erosion and Profit Shifting (BEPS) and
the elimination of tax practices known as harmful.This led to a confirmation by the OECD in November 2018 that Mauritius had satisfied its international requirements of the BEPS Action 5 and didn't have any tax practices identified as harmful any longer.
Clearly, this recognition by the EU Council is a welcome acknowledgement of the continuing efforts and ambition of the Mauritian Government to boost its name and position itself as a competitive Financial Center in line with the EU and other relevant measures.