New Service Offerings: Financial Emigration | Offshore Structuring | Broad-Based Black Economic Empowerment
CMV is proud to announce the addition of the following valuable services to our firm:
1. Financial Emigration
The latest amendments to the ‘expat tax’ legislation is coming into effect from 1 March 2020. Currently, South African tax residents working abroad do not pay income tax in South Africa on foreign income earned. This applies if they have spent 183 days during a 12-month period abroad, with 60 of these days being consecutive. The latest amendments stipulate that only R1 million of foreign income will be exempt from income tax in South Africa and all foreign income exceeding this amount will be taxed.
Financial emigration is the process whereby individuals earning mostly/only foreign income financially emigrate from South Africa for foreign exchange control and taxation purposes, without giving up their South African citizenship. By financially emigrating from South Africa and living in another country, you will not be classified as a South African tax resident and, therefore, you will only be taxed on income earned within South African and not on any foreign income going forward.
This application process is complex and triggers capital gains tax, as well as foreign exchange controls consequences, and sound guidance and advice is crucial going into such an application.
CMV can assist you with the entire financial emigration process, with a customised solution, based on your specific needs.
2. Offshore Structuring
Offshore structuring entails arranging your investments in such a way to enable holding your worldwide assets from an entity and country abroad. This has become more popular as increased capital gains tax, applicable to South African tax residents, is eroding returns realised on assets.
It is important to note that the South African Revenue Service, as well as the South African Reserve Bank, have stringent regulations related to offshore structuring by South African residents and it is, therefore, crucial to consult an expert on this topic. There is no ‘off-the-shelf’ solution and it is imperative that offshore structuring is carefully planned and customised, with all aspects and consequences explored.
CMV has experts specialising in offshore structuring and are available to assist you to determine if this is a viable option for protecting your wealth.
3. Broad-Based Black Economic Empowerment ‘B-BBEE’
B-BBEE has become an unavoidable part of running a sustainable business in South Africa.
Since the B-BBEE Act was introduced in 2003, most businesses have decided to take a reactive approach to it and carved out a way to continue to run their operations without implementing the necessary changes, as required and intended by the B-BBEE Act. During the last few years, the Act has evolved significantly to consider non-compliance, fronting, and ignorance thereof.
When partnering with the experts in this field, B-BBEE does not have to be the topic that you and your business avoid because of the general perception that you will ‘give away’ a part of the legacy that you have built.
At CMV we strive to provide you and your business with innovative solutions for B-BBEE. This will maximise all possible benefits that can be obtained by adhering to the spirit and intention of the B-BBEE Act.
Should you require any of the abovementioned services, please call us on 012 991 4400 for an appointment.
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
