PRIMED FOR PoEM
What is PoEM and why is it important?
Understanding the importance to assess not only Mauritius Tax legislation, but also International Tax requirements on your Mauritius entity (with specific reference to residency) is critical. This is specifically critical if you have international influence in your local entity, like international shareholding, international directors, or the executive management is outside of Mauritius. Many international jurisdictions determine a company could be regarded as tax resident in a country when its Place of Effective Management (PoEM) is located in that country.
PoEM is a much broader concept than Central Management and Control, which Mauritius legislation use to determine residency. This could potentially lead to a tug-of-war between tax authorities determining the tax residency of your company.
​
Where a company is regarded as tax resident in two countries, one would need to look at the Double Tax Agreement (DTA) between the countries to determine where the company is solely tax resident. In most instances, the tie-breaker clause contained in the DTA to determine tax residency of the company, either refers to:
-
The country in which the PoEM is located to be the country of ultimate tax residence; or
-
That tax residency will be determined by way of mutual determination by the respective Revenue Authorities.
Adhering to PoEM guidelines involves meeting a hefty set of substance requirements. Failing to address any aspect of this could result in significant risks, potentially leading to a costly and complex situation. This is where CFO Insight Mauritius comes in.
We are here to prime you for PoEM, equipping you with a thorough understanding of what this means for your business and what is expected of you – ensuring that you comply with all the necessary requirements. We offer a turnkey solution by introducing one of our CFOs in your business, providing expertise and surety in meeting all PoEM criteria.
Meet Dave
Meet Dave, our everyman client who fell into some very common pitfalls… Dave thought he had ticked all the boxes, but quickly learnt the nuances of Central Management and Control (CMC) and Place of Effective Management (PoEM) the hard way. Luckily, Dave was Primed for PoEM just in time! Watch to see how his journey unfolds.
Are you Primed for PoEM?
When you are primed for PoEM, you are set up for success in operating from Mauritius. One of our missions is to guide international business owners through the intricate landscape of tax legislation, ensuring that they are well-informed and compliant with Place of Effective Management (PoEM) guidelines. We provide comprehensive resources and expert advice to navigate these regulations effortlessly, equipping you with the insight of a CFO.
Through our experience and expertise, we provide support at every turn, mitigating risks and costs, and setting your business up to thrive within the relevant legal framework. By providing a turnkey solution and placing one of our CFOs in your business, we ensure that it is not only established correctly in Mauritius but that it continues to succeed.