Estate Living Magazine Alfresco Living - Issue 36 December 2018 | Página 63

Pooling of funds
In the pre-BEPS era, funds would be domiciled
off shore so that they could escape the burden of
onshore regulations and tax.
Today, development fi nance institutions increasingly
choose to channel their investments in Africa through
Mauritian vehicles, because of the trustworthiness
of the country’s legal framework for the pooling of
funds, good governance and reputation.
While Mauritius is working towards compliance with
the OECD’s best practices, its resulting tax regime for
investment-holding activities remains competitive,
with foreign dividends and interest qualifying for a
maximum income tax of three per cent, and capital
gains on sale of shares qualifying as exempt income
– subject to prescribed substance requirements and
relevant licencing conditions being met.
Procurement
The Finance (Miscellaneous Provisions) Act of 2018
has expanded the defi nition of ‘export of goods’ to
include international buying and selling of goods,
whereby the shipment of goods is made directly by
the shipper in the original exporting country to the
fi nal importer in the importing country, without the
goods being physically landed in Mauritius. Such
international trading of goods will be taxed at the rate
of three per cent – an incentive to be compounded
with such other factors as an adequate infrastructure
and a skilled workforce, thus turning the country into a
competitive procurement platform for Africa.
as an eff ective and trusted
regional treasury centre
used by large corporates
and trading houses for
their Africa-led business.
As the new ‘scramble
for Africa’ sees foreign
investment pouring in from
around the world, including
from the continent itself, the
Mauritius IFC, which has been
built on trust and eff ectiveness, has
become a compelling component of this
dynamic.
About Ocorian
At Ocorian Africa, Middle East and Asia (formerly known as ABAX),
we provide private client, corporate and fi duciary services, including
the establishment and ongoing administration of Mauritian global
businesses, trusts, funds, limited partnership structures and
foundations.
With over 300 local ‘feet on the ground’ in Mauritius, our flexible and
commercial service provides an exciting platform for our clients to
invest in the burgeoning markets of Africa, the Middle East and Asia.
To fi nd out more about how we can help you with your Africa-
focused business, please contact:
Trade financing
A conservative estimate drawn from research
undertaken by the African Development Bank
estimated the value of unmet demand for bank-
intermediated trade fi nance in 2014 to be in excess
of US$90 billion. Mauritius is seeking to capitalise
on this huge fi nancing gap on the back of its mature
banking system, stable economy, and absence of
foreign exchange control. Financing from Mauritius
in support of growing African trade is a major business
opportunity, as recently highlighted in the blueprint
for the development of fi nancial services published
by the Financial Services Commission of Mauritius.
Likewise, Mauritius is attracting growing recognition
Nousrath Bhugeloo
Regional Head, AMEA
Business Development Fazeel Soyfoo
Director, Tax
[e-mail] [e-mail]
www.ocorian.com
estate-living.co.za
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