structuring your investments into africa ben lim, ceo, intercontinental trust ltd mauritius

Structuring your investments into AfricaBen Lim, CEO, Intercontinental Trust Ltd

Mauritius

Investment into AfricaInvestment into AfricaInvestment into AfricaInvestment into Africa

Investment into Africa – Tax HavenInvestment into Africa – Tax HavenInvestment into Africa – Tax HavenInvestment into Africa – Tax Haven

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Using a traditional Tax Haven

• African countries known to have high withholding tax rates

• No Protection from Double Taxation Agreements

• No Protection against Nationalisation or Confiscation of Assets

Investment into Africa via Mauritius Investment into Africa via Mauritius Investment into Africa via Mauritius Investment into Africa via Mauritius

Why use Mauritius for Africa?

• Mauritius is part of Africa• African Union• Common Market for Eastern and Southern Africa (“COMESA”)• Southern African Development Community (“SADC”)• Indian Ocean Rim – Association for Regional Coorperation (“IOR-ARC”)• Africa Growth and Opportunities Act (“AGOA”)

• Excellent Double Taxation Treaties Network

• Bilateral Investment Treaties

• Convenient Time Zones / Good Air Connectivity

• Dual Legal System – English & French

African Investment Funds

• Mauritius is the favoured jurisdiction for incorporating African Investment Funds

• African Development Bank (“ADB”) recommends Mauritius as an ideal location for the African Funds

• Member of the International Organisation of Securities Commissions (“IOSCO”)

• Over 600 Funds incorporated in Mauritius

• Modern legislation covering CIS and Fund Managers/Advisers

Mauritius – Recent Awards

Treaty Network: 36 DTAAs in force * 7 Treaties awaiting signature or ratification

** 10 Treaties being negotiated

Treaty Network: 36 DTAAs in force * 7 Treaties awaiting signature or ratification

** 10 Treaties being negotiated

Europe

• Belgium• Cyprus • Croatia• France• Germany• Italy• Luxembourg• Sweden• UK• Russia*

Europe

• Belgium• Cyprus • Croatia• France• Germany• Italy• Luxembourg• Sweden• UK• Russia*

Asia

• Bangladesh• China• India • Malaysia • Nepal • Pakistan • Singapore • Sri Lanka • Thaïland• Vietnam*

Asia

• Bangladesh• China• India • Malaysia • Nepal • Pakistan • Singapore • Sri Lanka • Thaïland• Vietnam*

Caribbean region

• Barbados

Caribbean region

• Barbados

Africa

• Botswana• Lesotho • Madagascar • Mozambique • Namibia • Rwanda • Senegal • Seychelles• South Africa • Swaziland • Tunisia• Uganda • Zimbabwe• Egypt* • Kenya*• Malawi*• Nigeria*• Zambia*

Africa

• Botswana• Lesotho • Madagascar • Mozambique • Namibia • Rwanda • Senegal • Seychelles• South Africa • Swaziland • Tunisia• Uganda • Zimbabwe• Egypt* • Kenya*• Malawi*• Nigeria*• Zambia*

Middle East

• Kuwait• Oman • United Arab Emirates• Qatar

Middle East

• Kuwait• Oman • United Arab Emirates• Qatar

In Negotiation

• Canada**• Czech Republic**• Greece**• Portugal**• Iran**• Burkina Faso**• Algeria**• Yemen**• Ghana**• Saudi Arabia**

In Negotiation

• Canada**• Czech Republic**• Greece**• Portugal**• Iran**• Burkina Faso**• Algeria**• Yemen**• Ghana**• Saudi Arabia**

DTAs with African Countries

AfricaAfrica

Investment Promotion and Protection Agreements20 Fully Operational, 13 *Awaiting Ratification

Investment Promotion and Protection Agreements20 Fully Operational, 13 *Awaiting Ratification

• Madagascar• Mozambique• South Africa• Benin*• Botswana*• Burundi*• Cameroon*• Chad*• Comores*• Ghana*• Guinea Republic*• Mauritania*• Rwanda*• Senegal*• Swaziland*• Zimbabwe*

• Madagascar• Mozambique• South Africa• Benin*• Botswana*• Burundi*• Cameroon*• Chad*• Comores*• Ghana*• Guinea Republic*• Mauritania*• Rwanda*• Senegal*• Swaziland*• Zimbabwe*

EuropeEurope

• Belgium• Czech Republic• France• Germany• Ireland• Luxembourg• Portugal• Romania• Switzerland • UK

• Belgium• Czech Republic• France• Germany• Ireland• Luxembourg• Portugal• Romania• Switzerland • UK

AsiaAsia

• China• India• Korea• Nepal• Pakistan• Singapore

• China• India• Korea• Nepal• Pakistan• Singapore

• Barbados• Barbados

Carribean Region

Carribean Region

Investment Promotion & Protection Agreement (“IPPA”)

• Covers every kind of asset

• Includes concessions to search for, cultivate, extract or exploit natural resources

• Non-Discrimination

• Treatment of Investments. Compensation of losses owing to war / other armed conflict

• Expropriation

• Right to Compensation

• Disputes between Investor and Contracting Party

• Provision for International Arbitration after 6 months

• Disputes between Contracting Parties

• Provision for an Arbitral Tribunal

• Retroactive

Corporate Vehicles

Global Business Companies (“GBC”)

• Category 1 – Tax Treaty Company (“GBC1”)• Category 2 – Tax Exempt Company (“GBC2”)

Activities

• Holding Companies• Investment Funds• Asset Management Companies• Private Trusts• Trading Companies

Set up a Mauritius Company

Incorporation

• Two weeks• Regulated by Financial Services Commission

Re-domiciliation (Migration)

• Most offshore jurisdiction allow companies to migrate out• Effective way to continue the company to Mauritius• Immediately after re-domiciliation, the company can take advantage of the

• DTAAs• Investment Protection Agreements

Redomiciliation of CompaniesRedomiciliation of CompaniesRedomiciliation of CompaniesRedomiciliation of Companies

Countries Allowing Re-domiciliation

Andorra BVI Ireland Maldives Seychelles

Anguilla Brunei Isle of Man Malta St Kitts & Nevis

Antigua Cayman Israel Marshall St Lucia

Aruba Cook Jersey Mauritius St Vincent

Austria Costa Rica Latvia Montserrat Switzerland

Bahamas Cyprus Lebanon Nauru Turks Caicos

Bahrain Dominica Liberia Neth. Antilles UAE Dubai

Barbados Gibraltar Liechtenstein Panama Uruguay

Belgium Grenada Luxembourg Philippines US Virgin

Belize Guernsey Macao Madeira USA Delaware

Bermuda Hungary Labuan Samoa Vanuatu

Tax Residence

A Company is tax resident in Mauritius if it is either:

• Incorporated in Mauritius; or• Managed and controlled from Mauritius

Conditions to obtain a Tax Residence Certificate (“TRC”):

• Two local directors• Local company secretary• Local auditor• Board meetings chaired from Mauritius• Statutory records kept in Mauritius• Accounting records kept in Mauritius• Principal bank account in Mauritius

TRC country specific and renewed yearly

Tax in Mauritius

•No Capital Gains Tax

•No Profits on Sale of Shares

•Maximum Corporate Tax of 3% (Most companies pay zero tax)

•No Withholding Tax on payments from Mauritius

•Advance Tax Rulings

•Whitelisted by OECD

•No Exchange Controls

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Intercontinental Trust Ltd

• Intercontinental Trust has been in existence for over ten years

• Licensed and Regulated by the Financial Services Commission

• Principals have been active in this industry for over 15 years

• Over 100 staff

• Active participation in the legal and regulatory reform process of the financial services sector in Mauritius

• Among the leading Trust Companies in Mauritius

2020

Services

• Incorporation & Administration of Companies

• Fund Formation and Administration

• International Tax Planning

• Trustee Services

• Accountancy Services

• Business Process Outsourcing

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SAS 70

•Intercontinental Trust Ltd and its subsidiaries recently obtained their SAS 70 Type II certificate

•Audit Report Unqualified by PricewaterhouseCoopers

•One of the first trust companies to have SAS 70 Type II

Thank You