September Newsletter 2018

South Africa & Mauritius Relationship Strong

South Africa has remained one of the most important regional trade partners to Mauritius and continues to prove this trait. The importing & exporting between the two countries continues to grow and create great wealth for both countries. Due to the geographical proximity and complementarity of the products offered by both countries, they are the perfect match.

The biggest exports heading towards the South African shores are primarily apparel and textile. The imports into Mauritius are mainly made up of mineral fuels, lubricants, food products, machinery and transport equipment.

Mauritius is of course one of the most significant business destinations for South African business men including investors and entrepreneurs. There are many resources that assist this location to be the best for South Africans, including geographical proximity, regional trade agreements (SADC & COMESA), the business environment and the quality of life.

‘In 2017, Foreign Direct Investment from South Africa amounted to MUR 1.8 Billion. Moreover, the Economic Development Board (EDB) granted nearly 785 Occupation Permits to South African Nationals.’

Mauritius have picked up on this constantly growing relationship with South Africa and have tried to conduct several missions across the major cities including Cape Town, Durban, and Johannesburg. The EDB’s main objective is to target high value manufacturing and distribution/logistics companies having regional expansion plans as well as to promote Mauritius as the ideal sourcing destination.
The relationship between these two countries is getting stronger by the year, and we are looking forward to welcoming many logistics firms looking to use the platform Mauritius is offering – If you need any assistance with contacting the correct people or setting up a Freeport Company, we are happy to help!

Please see article Below:

http://edbmauritius.org/newsletter/2018/May%20Newsletter/EN/international.html

BTG & IKM Advocates Estate Planning Seminar

BTG Management Services & IKM Advocates joined forces to provide the private & corporate clients of Nairobi, insight to successful onshore & offshore estate planning. The event was hosted at the Radisson Blue Hotel, Nairobi, Kenya. 
William Maema, a partner of IKM Advocates, started the proceedings with an excellent, descriptive and important proposal on the need of onshore estate planning for the Kenya citizens. There are a few very important myths that William made sure to clear being:

  • Planning your estate is NOT courting your death!
  • Estate Planning is not about Distribution of Matrimonial Property.
  • There is more to estate planning than just writing a Will.
Boris then stepped up to provide details on the offshore market. He went on to say, your main objectives with the estate plan are usually asset protection and covering what happens to your estate should you become deceased.
The main participants in this process are your spouse if you have one, the family accountant and/or lawyer and the financial advisor that is currently looking after any investments you have.

You would collate on a spreadsheet what the assets are and where are they situated. For example, a bank account in Switzerland, a custody account in the UK, a property in the US etc.

Your accountant or lawyer can review at a high level what the foreign laws and taxes that apply to those assets. They may also work through an estate planning questionnaire to get a full understanding of the personal assets and liabilities, existing businesses. Investments and family circumstances.

Once this is bedded down you can then assess what estate planning tools to use - these can include a foreign will and/or a foreign trust to hold the assets. Other tools include lifetime planning like gifting your assets to your heirs, disposing of the assets and life insurance.

A typical estate plan will be a document highlighting the above aspects:

  • Efficient Estate Administration
  • Appoint heirs and legatees of choice and distribute assets as per your wishes – don’t die intestate
  • Provide liquidity at death - pay taxes, costs of administration etc. + provide an income whilst the estate is being administered.
  • Provide for dependents a minor
  • Provide for business interests
  • Account of both local and offshore assets
  • Minimize costs
  • Ensuring the plan is practical legal and efficient – if only tax is a driver then there may be inflexibility.
  • Build in flexibility for changes to take place.
The benefits of setting up an offshore estate planning vehicle are as follows:

  • You consolidate your current and future investments under one trust for ease of management and reporting purposes.
  • Investment changes done whilst the investments are held by the trustee do not trigger capital gains or income tax in your hands.
  • You reduce your estate by removing your growth assets which in turn reduces not only estate duty in South Africa, but also executor's fees.
  • You avoid complicated and time-consuming procedure about appointment of executors, proving the will and winding-up in respect of any foreign assets.
  • You avoid the application of complicated succession laws of different jurisdictions, such as forced heirship rules.
  • You can provide for your dependents, so they can have immediate access to the trust funds whilst your personal estate is being wound-up.
  • The offshore assets remain outside exchange control restrictions and can remain outside the tax net of the prospective new country of residence.
  • You prevent your future heirs from squandering any inheritances.
 
If you would like to have a look at his presentation, please click the link below:

http://btg-mauritius.com/pdfs/Presentation.pdf
 
 
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The Mauritius Global Business Sector refurbished.

Mauritius is consistently evolving to make sure they can keep up to date with the forever changing economic environment and constant international pressure for high standards. With the enactment of the Latest Finance Act 2018, the government are approving amendments to 68 acts with regulations to follow shortly.

The focus for Mauritius is to make sure that they are in line with global norms and transparency standards, while keeping the same level attractiveness for investors wishing to use Mauritius in the global business sector. With these latest amendments, you can be sure to call Mauritius a jurisdiction with substance & high international compliance standards. Therefore, Mauritius keeps its position on being a great financial platform for inbound and outbound investors to structure good business practice.

If you would like to have a look in more detail the main amendments to the Financial Services Act, click the clink below to the summary provided by ENSafrica.

https://www.ensafrica.com/news/The-Mauritian-global-business-sector-revamped?Id=3148&STitle=ENSafrica%20ENSight#
 

BTG Management Services (Mauritius) is a full service Management Company located in Mauritius licensed by the Financial Services Commission under section 77 of the Financial Services Act of 2007.

 

Contact Info

Head Office: MAIN OFFICE, Nautica Commercial Center, Royal Road Black River,  Mauritius

Phone: (+230) 483-1212

Fax: (+230) 483-1313

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