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