RETENTION OF FOREIGN CURRENCY OUTSIDE SOUTH AFRICA

South Africa has had and continues to produce an impressive number of entrepreneurs.  One of the fears of our entrepreneurs is to watch the fruits of their hard labour being stripped down by the retention of funds in South African Rands.

Whilst South African Exchange Controls have been significantly relaxed since the reformation of exchange control, commenced in 1997, there seems to be a general concern, that the limits available to individuals may be curtailed due to the debt owed by the South African government.  The debt currently amounts to approximately USD 230 million (Source - https://commodity.com/data/south-africa/debt-clock/) and is viewed by many economists as being unsustainable.

It has therefore become imperative and vital for South Africans to consider taking measures to retain their currency outside South Africa. Here is where Mauritius comes into play.  Given the close proximity of Mauritius to South Africa, more South Africans are choosing to use Mauritius as a lifeline.

Indeed, more and more South African residents have resorted to the adoption of trusts set up in Mauritius to protect their businesses from adverse South African tax implications.

Mauritius, a home away from home

In addition to the retention of foreign currency outside South Africa, many South Africans have either structured their off-shore investments via Mauritius or have opted to live in Mauritius. One of the advantages of choosing Mauritius is that residency may be granted in a few weeks and in a number of ways.  The options available are:

• Acquisition of immovable property in Mauritius costing at least USD 375, 000;
• By way of a retiree permit, available to persons of 50 years and older. (Only one of the spouses needs to be at least 50 years of age); or
• Investment in Mauritius where a minimum investment of USD 50, 000 and annual turnover of USD 100, 000 per annum are required.

We invite you to contact a member of our team to explore the different available options.

MEMBERS OF THE JURISTAX TEAM

OUR LOCAL REPRESENTATIVE – Nicky Combrinck

We have a local representative based in South Africa, Nicky.  She is an admitted attorney and holds a post graduate diploma in international taxation.  Nicky has many years in the legal and financial services industry and is well versed with the legal and tax intricacies stemming from cross border transactions.

She is a phone call away. Please call her on +27 73 005 2192

You may also contact her at ncombrinck@juristax.com

OUR TAX EXPERT - Ian Chambers

In order to ensure that JurisTax is abreast of South African tax and exchange control legislation, JurisTax retains the services of a South African tax and exchange control specialist, Ian Chambers.  Ian has extensive experience in the off-shore sector and emigrated to Mauritius in 2008.  Prior to his emigration from South Africa, Ian was a partner at Fisher Hoffman Stride Chartered Accountant where he was engaged in the tax department as well as being a partner at Routledges Attorneys where he started the tax and exchange control department.  Ian was also head of the Structured and Project Finance Division of Credit Agricole Indosuez in South Africa.  Ian completed his national service at the then Inland Revenue in the Law Interpretation Division.  During his time at Fisher Hoffman Stride, Ian was one of the original editors of the South African Revenue Service Practice Manual when it was first published in 1998.  Ian was also one of the consulting editors of the LexisNexis Tax Diary and LexisNexis Financial Advisors Handbook.

You may contact Ian on ichambers@juristax.com or on +230 5254 0765.  Ian is also available on WhatsApp.

OUR DIRECTOR OF INTERNATIONAL BUSINESS - Taroonah Doolub

Taroonah heads the strategic arm of JurisTax Group and is a barrister at law with extensive experience in the compliance, legal, global business, accounting and corporate structuring areas. She has an excellent understanding of Mauritian entities and Financial Services law as well as compliance and Anti- Money laundering regulations and practices. Having spent several years in various law firms in Mauritius and over 7 years in the global business sector, Taroonah has occupied key senior positions in the compliance and legal departments in the financial services industry.   

You may contact Taroonah on tdoolub@juristax.com or on +230 5258 8414.  Taroonah is also available on WhatsApp.

To ensure your swift transition from South Africa, we can work closely with your South African accountant or tax practitioner.