Juris Senate Group Presentation held November 2016

2. Why are IFA’s using offshore?

3. freedom | flexibility | fortune
Why are IFA’s using offshore?

4. freedom | flexibility | fortune
for both the client and the IFA
Why are IFA’s using offshore?

5. Can invest globally without limits
Has access to foreign currency
Pays considerably less tax
Secures external capital base
for both the client and the IFA
£
%
@

6. Can invest globally without limits
Has access to foreign currency
Pays considerably less tax
Secures external capital base
IFA
th the client and the IFA
£
%
@

$
 Has a complete offering: domestic & offshore
Increased share of wallet
New revenue streams

7. IFA
th the client and the IFA£ %@
Has a complete offering: domestic & offshore
Increased share of wallet
New revenue streams

$


8. A WIN WIN SITUATION!!
IFA
th the client and the IFA£ %@
 $

9. How are IFA’$ using offshore?
SO

10. WELL
meet John

11. John, an SA resident
contacts his IFA

12. OBJECTIVE 1:
To create an offshore capital base

13. OBJECTIVE 2:
To expand his business Internationally

14. How to achieve Objective 1

15. John obtains a Tax Clearance Certificate based on
his right to a foreign investment allowance from

16. $$
FUNDS are transferred to an
Bank account in Mauritius

17. The Mauritius Bank
account is associated with $$
a trust or
a company or
a simple cash deposit

18. John wishes to invest his personal
international capital using his IFA to
manage his portfolio

19. $$
The Mauritius structure such
as a Trust or Company opens a
custody/trading account

20. The Mauritius structure appoints John’s
IFA to advise on the account on an
advisory/discretionary basis

21. The IFA earns advisory fees & can even create
his/her own international capital base
$$

22. How to achieve Objective 2

23. John wishes to expand his current
trading business, John Industries,
internationally. He opts for
expanding into Zambia

24. John’s IFA and JurisTax’s advisors
collaborate to craft an international
structure, tailor made to John’s
business needs

25. The Mauritius structure presents John with a
variety of benefits including:
• the ease of moving capital in support of his International business interests
• various TAX benefits triggered by the Double Taxation Treaty network of Mauritius
• a highly benevolent tax environment in Mauritius – no Withholding Tax, no capital
gains tax , no estate duties
£ %@

26. By collaborating with JurisTax and providing a
solution for his client the IFA earns
introducer fees
$$

27. £ %@  $
In the end, both
IFAclient &

28. £ %@  $
In the end, both
IFAClient & are

29. Passionate Supporters
of Success

30. >>How does JurisTax make this
happen for you?

31. We use building blocks4
Credentials Jurisdiction Skills & Expertise Products & Services

32. JurisTax Limited
Credentials
>>

33. JurisTax’s core focus areas
Structuring & Administering South
African businesses expanding
internationally & in particular
on a pan-African basis
Structuring & Administering International
businesses & capital focused on investments into
Africa and Emerging markets
Structuring & Administering
Private Wealth for HNW African &
European entrepreneurs and
families

34. JurisTax Limited
Often Heralded as a boutique firm, JurisTax is licensed by the Financial Services Commission to
provide a full range of Corporate, Fiduciary & Fund Services. To enable our clients to focus on
their core business, we provide all the essential administrative, accounting, taxation, legal &
company secretarial services that their company may require. Positioned as a one-stop-shop
service provider, JurisTax offers specialised services in the areas of investment funds, tax
planning, insolvency, intellectual property, aircraft and vessel registration as well as asset
protection.
“We are a forward-thinking and innovative management company and deliver world class
corporate solutions, adding our personal twist.”
Our ultimate goal remains to provide our client with spot-on business solutions by adopting
the best work practices. In our quest to provide our clients with a fully comprehensive service,
we have partnered with leading local and international partners including banks, legal firms
and other intermediaries.
“We guide you towards new business horizons through our expertise and craft lasting and
fruitful partnerships with our clients, based on trust and integrity.”

35. Pedigree & Heritage
Established in the year 2008 by Mauritians, we are unlike the vast majority of
Management and Trust companies in Mauritius whose growth was derived from
the Indian Sub Continent.
In contrast we have been always obsessive in our focus in delivering the highest
level of Expertise, Insight and Service.
it is our absolute belief that we are unparalleled in the understanding and
knowledge we have in addressing the most pressing issues of our clients especially
in respect of:
• Exchange control
• Taxation
• The Internationalisation of assets
• Forging trade and business links across the world

36. Philosophy
It is our strong belief that in order to succeed in the accumulation and
management of family and corporate wealth it is necessary to consider all aspects
of that wealth be it related to business or personal wealth.
That is why, uniquely, we take a holistic view when considering strategies to
create, manage and preserve personal and business wealth.
We believe in utilizing the full resources of the Group as we design and offer
customized solutions for a broad range of clients

37. Driven by Service
At the heart of our organisation and our people is a passion to deliver the highest
quality personal service in our day to day dealings with our clients.
For nearly ten years, we have had just one vocation:
 To advise our clients on structuring;
 Implementation of solution; and
 Administration and ongoing monitoring of validity of solutions previously
implement.
Our values are firmly rooted in our daily operations where we consistently
demonstrate the professionalism, technical expertise and range of skills of groups
far larger than ourselves.

38. JurisTax
Jurisdiction
>>

39. Jurisdiction - Mauritius
LOCATION > Indian Ocean
TIME ZONE > GMT + 4 hours
CAPITAL > Port Louis
POPULATION > 1.3 Million
GOVERNMENT > Parliamentary Republic
6 hrs from Dubai, UAE
6 hrs from Mumbai, India
11 hrs from Paris, France
9 hrs from Perth, Australia
12 hrs from London, England
4.5 hrs from Johannesburg, South Africa
LANGUAGE > English & French
Offshore
Global Business incentives
introduced in 1992; now
recognized as a leading
regional financial centre

40. Political, Economic & Social
Political stability guaranteed by a parliamentary
democracy based on the Westminster model
A hybrid legal system based on English and
French laws with the UK Privy Council as the
highest Court of Appeal
White-listed jurisdiction recognised by OECD

41. Political, Economic & Social
Mauritius remains the top ranking country in
overall governance in Africa for the ninth
consecutive year according to the Mo Ibrahim
Index of African Governance 2015
Mauritius, the only Sub-Saharan country to rank
among the top 10 in the 2015 Index of Economic
Freedom

42. Mauritius Tax Highlights
 Corporate Tax Rate– 15%, which may be reduced to 0% for entities operating in
the global business sector
 Withholding Tax– No WHT on dividends; 10% WHT on interests unless
specifically exempted; 15% WHT on royalties although a 0% rate applies to
specified non-residents
 Dividends – Dividends paid by a Mauritius-resident company are exempt from
income tax. Foreign dividends are taxable but a credit for underlying and WHT
can be claimed
 Foreign Exchange Control – none
 Capital gains – no tax imposed on capital gains in Mauritius
 Foreign tax credit – foreign tax suffered may be credited against Mauritius tax
on the same income
 Attractive fiscal policies – with 43 active Double Taxation Avoidance Treaties &
22 Investment Promotion and Protection Agreements (IPPA’s)

43. Double Taxation Avoidance Agreement
Rwanda
Senegal
Seychelles
Swaziland
Uganda
Zambia
Croatia
France
India
Nepal
Bangladesh
China
Singapore
43 treaties concluded
Botswana Lesotho
Madagascar
Mozambique
Namibia
Italy
Luxembourg
UK
Kuwait
Qatar
UAE
Australia
Thailand
Zimbabwe
Congo
Egypt Germany
GuernseyMalaysia
Oman
Pakistan
Sri Lanka

44. DTTA / Investment Promotion and Protection Agreements
AFRICA
Burundi
Egypt
Madagascar
Mozambique
Congo
Korea
Senegal
South Africa
Tanzania
ASIA
China
India
Indonesia
Korea
Singapore
Pakistan
EUROPE
Belgium &
Luxembourg
Czech Republic
Finland
France
Germany
Sweden
Switzerland
Portugal
Romania
UK &
Northern Island
10 with EUROPEAN Countries
9 with AFRICAN Countries
6 with ASIAN Countries
OTHERS
Barbados
MIDDLE EAST
Kuwait

45. JurisTax
Skills & Expertise
>>

46. JurisTax
An International Team
The team at JurisTax is multinational and multi cultural with a broad diversity of
educational and professional backgrounds.
All Encompassing Skills
Our expert teams bring skills to address all aspects of the management of a structure and
include lawyers, accountants, tax experts, wealth managers, business leaders,
entrepreneurs and estate planners.
Taking an all encompassing view
Our teams are bound by a shared passion for problem solving to make a significant
impact in the structuring, management and administration of your personal and business
wealth.

47. Our preferred partners
HSBC
Standard CharteredBarclays
PwCKPMG Afrasia
Board of Investment
BDOStandard Bank Deloitte
Deutsche Bank
MazarsInvestec
Chambers Consulting

48. JurisTax
Product and Services
>>

49. Offshore Business Entities
 Trusts
 Category 1 Global Business Licence Company (GBL1)
 Category 2 Global Business Licence Company (GBL2)
 Protected Cell Companies
 Domestic Companies
 Limited Partnership
 Foundations
 Funds – Collective Investment Schemes
We can also assist with structures in other jurisdictions such as Seychelles, IOM,
BVI, etc. through our preferred partners & associates

50. Trusts
 Legal relationship where the owner (Settlor) of assets transfers them to an
independent third party (Trustee) for maintenance and management for the
benefit of another person or persons (Beneficiaries) or a purpose or both
 Not a separate legal entity and cannot be sued in its own name
 Types of Trusts: Charitable, purpose, discretionary, trading, investment, etc.
 Mostly used for:
– Wealth protection
– Inheritance and succession planning
– Charitable purposes
– Investment Holding
– Tax minimization
– Can be part of business company structure

51. Trusts
 Mauritius Trusts are not registered with the authorities unless a GBL1 licence is
required but governed under the Trust Act; Seychelles trusts are regulated by FSA
 Professional qualified trustee must be appointed
 Trust may appoint investment or financial advisers, protectors (guardians)
 Assets vested in the trust does not form part of the settlor’s estate
 Assets kept for beneficiaries or purpose chosen by the settlor
 Useful for asset holding, investment holding, charitable functions, specific
purposes, pension and employee benefits
 Discretionary Trusts mostly used as they provide more flexibility in terms of
beneficiaries’ entitlements but beneficiaries not entitled until appointment

52. JurisTax– Trustees
Trust
Settlor(s)
Beneficiaries/
Purpose
Bank
Account
Asset
Property
Asset
Investment
Asset
Other
Investment/
Financial
Adviser
Protector
Example of a Trust Structure

53. Trusts
Advantages of a Trust
• Assets are invested in the name of the Trust and not the name of the settlor.
• The assets do not form part of the estate of the settlor as it has been gifted to the Trust
• Protection from claims of creditors in certain situations
• The assets are protected for the benefit of the Beneficiaries and therefore, on the demise of the
Settlor, the investments are not interrupted
• The assets of the Trust are protected from spendthrifts of the family after the demise of the Settlor
• Orderly transfer of wealth to the next generations on the demise of the Settlor
• Tax savings: mechanism for income tax saving – by transferring assets to a Trust, the assets cease to
be owned by the Settlor, which then makes it possible to minimise taxes
• To manage the application and effect of exchange control, the Trust will be in a jurisdiction with no
application of exchange control

54. Trusts
Main Features of a Mauritius Trust
• Confidentiality of Trustee' deliberations, identity of Settlor and Beneficiaries
• Possibility to establish letters and memorandum of wishes
• Anti-forced heir ship rules
• Migration of Trust possible
• Concept of managing and custodian Trustee (up to four Trustees)
• Charitable Trusts are exempt from tax, and
The proper law of the Trust is the one chosen by the Settlor, or the one implied in the
Trust Deed. If no law is chosen, the one which is most closely connected at the time of
creation of the Trust will be treated as the proper law

55. Corporate
Types of Corporate (Mauritius)
There are five types of corporate entity which can be incorporated with the Registrar of
Companies in Mauritius. Each Global Business License entity type will be licensed by the
Mauritius Financial Services Commission (FSC). Domestic Companies do not require
licensing by the FSC
– Limited Company – GBL1
– Limited Company – GBL2
– Limited Company – Domestic

56. Category 1 Global Business Company (GBL1)
A Category 1 Global Business Company is licensed by the Financial Services Commission
pursuant to the Financial Services Act 2007. A GBL1 may be locally incorporated or may be
registered as a branch of a foreign company. The GBL1 Company may also apply for
additional licenses under the Securities Act and the CIS Regulations.
Capital
• There is generally no minimum stated capital requirement
• Capital can be denominated in any currency
• GBL1s are subject to no restrictions as to the distribution of their assets.
Taxation
• GBL1 companies are resident in Mauritius for tax purposes.
• There are no capital gains tax, and no withholding tax on payment of dividends, interests or royalties.
• No stamp duties or capital taxes.
• No inheritance tax.
• GBL1 companies are liable to taxes at the rate of 15%.

57. Category 1 Global Business Company
Main Features
• Have at least two resident directors in Mauritius;
• Chair and initiate Board Meetings from within Mauritius;
• Maintain an account with a local bank through which funds must flow;
• Maintain its registered office and all statutory records (including share register and
accounting documents) in Mauritius;
• Have a local qualified company secretary;
• Have a local auditor; and
• May own shares in a GBL1 and may in a GBL2 if no shareholders or beneficial owners are
local residents of Mauritius

58. Category 2 Global Business Company (GBL2)
A Category 2 Global Business Company is a private company which conducts business with
persons all of whom are resident outside Mauritius and in a currency other than the
Mauritian rupee.
Taxation
• A GBL2 does not pay any tax on its world-wide income to the Mauritian Authorities.
• No withholding tax on dividends.
• No capital gains tax.
• The tax cost of a GBL2 is effectively the foreign tax suffered.
• A GBL2 can trade and/or invest in a GBL1 and vice versa.
Mobility
• A foreign company may transfer its seat to Mauritius and continue as a GBL2 provided this is allowed under
the laws of the country in which it was incorporated.
• A GBL2 may transfer its statutory seat to another jurisdiction.
• A GBL2 can be converted into a GBL1.

59. Category 2 Global Business Company – Main Features
Capital and Shares
• There is no minimum capital requirement but at least one share must be issued and paid up;
• Registered shares, preference shares, redeemable shares and shares with or without voting
rights;
• Par value shares may be stated in more than one currency;
• Fractional shares are allowed;
• Bearer shares are not allowed;
• Shares may be subscribed by nominees;
• Shareholders may be individual or corporate;
• A GBL2 may acquire, redeem, reissue or purchase its own shares;
• The Directors are required to ensure that the company meets the solvency test after making
distributions; and
• The solvency test is satisfied where the company is able to pay its debts as they become due
and the value of the company's assets is greater than the sum of the value if its liabilities and
its stated capital.

60. Investment Funds
Investors and promoters have the possibility to select the type of fund that would be appropriate for their
profile, risk tolerance and objectives under the Securities (Collective Investment Schemes and Closed-end Funds)
Regulations 2008 (CIS Regulations) and Securities Act 2005 (SA05), as amended. A brief description of the funds
that can be authorised in Mauritius is provided hereunder.
CEF CIS
A CEF is a scheme, other than a CIS, whose object is to invest
funds, collected during an offering or from sophisticated
investors, in a portfolio of securities, or in other financial or non-
financial assets, or real property.
A CIS is a scheme
• whose sole purpose is the collective investment of
funds in a portfolio of securities, or other financial
assets, real property or non-financial assets;
• which is based on the principle of diversification of risk
• that, on request of securities holder, is obligated to
redeem at their net assets value, less commission or
fees
• where participants do not have day to day control over
the management of the property.
CIS includes closed-end funds whose shares or units are
listed on a securities exchange.
• has a fixed share capital
• does not entitle investors to call for their shares to be
redeemed at net asset value.
• may be formed with a limited life after which the assets are
distributed to investors upon winding up.
• has a variable share capital.
• entitles its investors to redeem their shares at net asset
value at pre-determined times.

61. Investment Funds
CEF Description
Relevant
Regulation
Professional Collective
Investment Schemes
Available solely to Sophisticated Investors or offering shares by way of private placements;
CEFs which are not reporting issuers can be classified as PCIS.
Regulation 75, CIS
Regulations
Reporting Issuer Subject to meeting the definition of a "reporting issuer" under the SA05, e.g. offering
securities via a prospectus, listed on SEM or has not less than 100 shareholders.
Section 86(1), SA05
CIS Description
Relevant
Regulation
Expert Funds Available only to Expert Investors (minimum initial investment of USD 100,000) or
Sophisticated Investors
Regulation 78, CIS
Regulations
Professional Collective
Investment Schemes
Available to Sophisticated Investors having a good knowledge of investment so they are
capable of protecting their interests or offering their shares by way of private placements
Exempted from certain regulations provided that (a) shares acquired by the participants are
not resold to the public and the participants are advised of this restriction at the moment of
subscription and (b) the PCIS is not listed for trading on the securities exchange.
Regulation 75, CIS
Regulations
Specialised Collective
Investment Schemes
Especially suited for investments in high risk or illiquid asset types, such as real estate,
derivatives or commodities
Prior decision of FSC is required as to whether or not such a scheme will be authorised.
Regulation 77, CIS
Regulations
Reporting Issuer A CIS/CEF may qualify as a Reporting Issuer if it meets the definition of a "reporting issuer"
under the Securities Act 2005
Section 86(1), SA05

62. Investment Funds
Foreign Schemes: The FSC may also recognise, under Section 101 of the SA05, a CIS established in a
foreign country subject to such conditions as the FSC considers necessary for the protection of
participants in the CIS.
• Sophisticated investor means the Government of Mauritius, a statutory authority or an agency established
by the government of Mauritius, the government of a foreign country or an agency of such government, a
bank, a CIS Manager, an investment adviser, an investment dealer or a person declared by the FSC to be a
sophisticated investor.
• Private Placement is defined as being an offer of securities where total cost of subscription or purchase for
each person to whom the offer is made is at least equal to the amount determined by the rules and where
each person subscribes or purchases for his own account and no publicity is made by the person making the
offer
Umbrella Funds/PCC: It is also possible to constitute the foregoing structures as "umbrella" funds
in either a Protected Cell Company or multi share class format. The umbrella fund will comprise of
two or more cells, sub funds or share classes and investors subscribe for shares or units in specific
cells, sub funds or share classes, each of which has its own investment policy with segregated
assets and accounting records. Investors can switch their investments from one sub fund to
another without redeeming their shares or units. An investment company in Mauritius can also be
set up as one of the sub funds of an umbrella fund established outside Mauritius.

63. Investment Funds
Protected Cell Company: The Fund may be structured as a PCC if your long term objective is to use the Fund as
an "umbrella" fund with different investment objectives or in view of segregating investors or having different
returns and charges associated with the cell. A PCC is a single corporate vehicle, which allows multiple separate
legal identities within one brand by way of cells.
A cell is not seen as a legal entity separate from the company. However, it does provide for a segregation of
assets and liabilities. The PCC remains a single legal entity but the liability of the company in respect of each cell
is limited to the assets attributable to the relevant cell, not for the debts of any other cell. These structures can
be extremely beneficial, for example, to a single investor in different assets, or to a particular type of investment
with different risk attributes (capital growth / income), for similar assets but in different currencies etc.
Main characteristics of a PCC are as follows:
• The assets and liabilities of each cell are legally segregated from each other, enabling ring fencing of assets
among the various cells;
• At least one cell must be created at the time of establishment of a PCC. No restrictions on the number of
cells that can be created, but the creation of each additional cell is subject to the approval of the FSC;
• Each cell may have different objectives, valuation frequency and different NAV and hence, different prices at
which the shares will be available to investors;
• The fund will issue cell shares to investors and non-cell shares (also known as management shares) to the
CIS Manager; and
• Only management shares are entitled to voting rights and held by the promoters either in their own name,
through nominee shareholding or through trusts.

64. Private Pension Schemes
What are your pedantic clients are looking for?
• RELOCATION OF FUNDS
The desire to retain an investment in a currency other than ZAR.
The desire to ensure investment returns in a currency other than ZAR.
The ability to draw the investment in a jurisdiction other than South Africa.
The ability to have the investment paid into a foreign bank account whilst they remain in South Africa which is not in
contravention of the financial surveillance regulations.
• SUCCESSION PLANNING
The requirement to be able to pass on the investment to their heirs.
• CONFIDENTIALITY
• AVAILABILITY OF INVESTMENT CHOICES

65. Private Pension Schemes
• A PPS is defined as being a scheme whether or not sponsored by an employer with the primary objective of providing pension
benefits to beneficiaries
• The beneficiaries of a PPS are entitled to pension benefits in terms of the rules of a PPS. “beneficiary” — (a) means a person
who is entitled to pension benefits in terms of the rules of a private pension scheme; and (b) includes a member...
• The pension benefit may be in the form of a pension, a compensation, gratuity or allowance payable to a beneficiary, and
includes a retirement benefit, a death benefit, disability benefit or such other allowance as may be specified in the rules of the
PPS.
• A PPS may either be a trust, a foundation or such body of persons as may be specified in the FSC rules. A PPS to be able to
operate in Mauritius will have to be licensed by the FSC, the regulator under the Private Pension Act 2012.
• 3 Categories of PPS
1. Pension Scheme - Pension scheme generally means a scheme which is regulated in Mauritius and
provides pension benefits to beneficiaries in Mauritius.
2. External Pension Scheme - External pension scheme means a scheme which is regulated /
administered in Mauritius and holds a Category 1 Global Business
Licence. It targets individuals outside of Mauritius.
3. Foreign Pension Scheme - Foreign pension scheme means a scheme which is regulated in a foreign
jurisdiction and is allowed to operate in Mauritius to cover Mauritian-
based members/ beneficiaries. Under this arrangement, Mauritian
employers can subscribe to pension plans incorporated abroad.

66. 66
Pension Scheme
represented by governing body
Shares
Investment – Foreign Jurisdiction
Members Members Members
Contributions
Pension Scheme Administrator
Investment Manager
Custodian
Pension Benefits
Beneficiaries Beneficiaries
Private Pension Schemes
Auditor
Actuary Actuarial valuation to be undertaken periodically to ensure funding levels.
The PPS will need to be audited by a qualified auditor and an audited financial
statements will need to be submitted to the FSC

67. Private Pension Schemes
HOW DOES THE PPS WORK?
1. The members will make contributions (by way of cash or assets) in the PPS + choose the options available to them.
The member’s age is taken into account and an aggressive investment portfolio is offered to
members under the age of 40, on the basis that the member still has 15 to 20 years to retirement
and profit maximisation is the objective in this stage of the members life. A less aggressive portfolio is
prescribed or offered for those between ages 40 to 50 whilst an extremely stable low risk portfolio is
recommended after age 50, assuming retirement will take place at age 65.
2. The Investment Manager together with the trustees will manage the assets of the PPS by making investment
decisions.
3. The Administrator of the PPS will prepare an annual benefit statement stating the normal retirement age, the
amount of contributions, the accrued & projected Pension Benefits .
4. At the retirement age of the member (not less than 50), the annuities will be paid out to the members or
beneficiaries - Names of individuals nominated by the member (may include the member himself); or Trust in which
the lump sum will be paid in the event of the death of the member (allowing for succession planning).
• Members may not encash more than 25% by way of a single withdrawal on retirement. The remaining portion
must be paid by way of a annual pension.
• Before retirement, there is the option of the members getting loans from the PPS under certain terms and
conditions.

68. Private Pension Schemes
TAX TREATMENT OF A PPS IN MAURITIUS
• The external PPS is tax resident in Mauritius
• PPS is liable to at a rate of 15%. However, the PPS, being
holder of a GBL 1, will be entitled to claim either the
deemed foreign tax credit of 80% or the actual foreign tax
credits whichever is greater, reducing tax to 3% on its
foreign sourced income..
• Any gains derived by the PPS on disposal of securities will
not be subject to tax under Mauritian laws.
• PPS are designed to trigger benefit payment, usually in the
form of annuity, when the member reaches at the
retirement age.
• The distributions of the PPS (in this case, pension benefits)
to non-resident beneficiaries are not subject to tax in
Mauritius.
TAX TREATMENT IN SOUTH AFRICA
• The external PPS is not tax resident in SA.
• Annuities may be remitted to South Africa or to a bank
account outside South Africa.
• No exchange control restrictions in South Africa in respect of
a South African exchange control beneficiary of a PPS.
• No disclosure of contribution and entitlement to pension
benefits to SARS, as in contradistinction to the investment in
an investment fund.
• Disclosure of receipt of annuities is required, and is made in
the tax return.
PPS Processing Fee
USD 200
PPS Variable Annual Fee
USD 1 per member