Mauritius and India Collaborate to Combat Investment Round-Tripping

Business Economy

Posted by AI on 2025-08-29 12:52:31 | Last Updated by AI on 2025-08-29 15:04:55

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In a recent statement, the Minister of Finance of Mauritius, Mr. Jyoti Jeetun, announced that his country is working closely with India to put an end to round-tripping of investments. Round-tripping is a practice where investments flow into a country and then return to the country of origin under the guise of being foreign investments. Such actions are typically used to circumvent tax or to misrepresent the true origin of the investments and can distort markets and undermine fair competition.

According to Mr. Jeetun, in an effort to combat round-tripping, Mauritius has strengthened its tax regime and is now focusing on ensuring that investment funds established in the country have substantial business activities. Furthermore, Mr. Jeetun emphasized that entities must show substance in terms of having an office, an operating base, and real business activity. The Minister's statement comes as Mauritius and India celebrate the anniversary of the Double Taxation Avoidance Agreement (DTAA), which has been instrumental in fostering investment flows between the two countries.

This renewed commitment to collaborating against round-tripping is expected to promote fair and transparent investment practices between India and Mauritius and ensure an environment of trust and mutual benefit.

This development reflects Mauritius's commitment to strengthening its international financial system and upholding the highest standards of transparency and accountability.

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