Home Tags Exchange control
Tag: exchange control
There is no denying that we live in the most technologically advanced era the Earth has ever seen and this is due to property rights and free trade. Removing restrictions on trade between individuals in a country is important, but removing restrictions on trade between individuals in different countries is arguably even more important given the enormous size of the global market compared to any single country’s domestic market.
Investing offshore should never be a knee-jerk reaction to current events, but rather a decision that is taken as part of an overall financial plan. With elections looming and many investors in panic mode, South Africans need to make sure they are investing offshore for the right reasons.
Expected changes to the income tax laws in March 2019 will allow members who emigrate before they reach retirement date more flexibility to withdraw their retirement funds when they leave the country.
With local news agendas being dominated by the rand’s dismal performance, recent GDP woes and an economy slipping into a technical recession – South African investors are increasingly seeking shelter via offshore exposure.
Statistics South Africa (StatSA) released the Community Survey in 2016 noting that a total of 94,760 South Africans have emigrated between 2006 and 2016. A more recent study performed by the Pew Research Centre in February 2018 notes that 900,000 people born in South Africa were living abroad for one year or longer. The top three destinations being United Kingdom, Australia and United States.
Multinationals in high-tax jurisdictions will now benefit from relaxed IP regulations. The 2017 Budget announced that the regulatory framework regarding cross-border intellectual property transactions is to be relaxed, for both tax and exchange control purposes.