BENEFITS OF INTERNATIONAL LOCATIONS

The benefit of using an international location to house your company and/or trust as a risk mitigation tool against political and economic risks can be illustrated through an example of a comparison between Mauritius and South Africa.

  • Mauritius is the top-ranking African country in the World Bank Group’s Ease of Doing Business report and is ranked 13th globally.  South Africa is ranked at number 84 globally.
  • Mauritius is also ranked as the top African country in the Economic Value of Peace Report (1st in Africa and 15th in the world) where South Africa ranks among the bottom 21 countries in the world.
  • Mauritius placed as the top ranking African country in the Democracy Index 2020 (1st in Africa and 20th in the world) where South Africa ranks 45th in the world.

The table below is an example of the differences between Mauritius and South Africa in a number of different financial elements:

Mauritius South Africa
Exchange control regulations in place No Yes
Personal income tax rate 15% (a solidarity tax is leviable on income above MUR 3 million) 18% to 45% depending on the level of income
Capital gains tax for companies Calculated as part of the company’s profits at a maximum rate of 15% 22.40%
Capital gains tax for individuals None Depending on the level of income and linked to the personal tax rate
Dividends withholding tax None (but can be subject to the solidarity tax under certain conditions) 20.00%
Effective corporate tax rate on investment business 3% 28%
Donations tax None 20% on donations between R100,000 and R35 million and 25% on donations above R35 million
Inheritance tax None 20% estate duty

*Please note that this should not be construed as financial or tax advice, the figures above are for illustrative purposes only.