{"id":226303,"date":"2022-05-18T06:36:25","date_gmt":"2022-05-18T04:36:25","guid":{"rendered":"https:\/\/mypr.co.za\/?p=115968"},"modified":"2022-05-18T06:36:25","modified_gmt":"2022-05-18T04:36:25","slug":"mauritius-a-country-to-die-in","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/mauritius-a-country-to-die-in\/","title":{"rendered":"Mauritius \u2013 A Country To Die In"},"content":{"rendered":"<aside class=\"scaip scaip-1 \">\n<aside id=\"republication_tracker_tool-2\" class=\"republication_tracker_tool clearfix\">\n<h5 class=\"adtitle\">Republish for Free<\/h5>\n<div class=\"license\">\n<p><button name=\"Republish This Story\" id=\"cc-btn\" class=\"republication-tracker-tool-button\">Republish This Story<\/button><\/p>\n<p><a class=\"license\" rel=\"noreferrer license noopener\" target=\"_blank\" href=\"http:\/\/creativecommons.org\/licenses\/by-nd\/4.0\/\"><img decoding=\"async\" alt=\"Creative Commons License\" class=\"lazyload\" src=\"http:\/\/www.myza.co.za\/press\/wp-content\/uploads\/2022\/05\/mauritius-a-country-to-die-in.png\"><\/a><\/p>\n<p><img decoding=\"async\" alt=\"Creative Commons License\" src=\"http:\/\/www.myza.co.za\/press\/wp-content\/uploads\/2022\/05\/mauritius-a-country-to-die-in.png\"><\/div>\n<div class=\"message\">\n<p>Republish our articles for free, online or in print, under a Creative Commons license.<\/p>\n<\/div>\n<\/aside>\n<\/aside>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">When thinking of Mauritius, one usually thinks of golden, sundrenched beaches, azure water, a lifestyle of leisure, and friendly people. Not to mention a very stable electricity grid, with no power blackouts, except the ones caused by the occasional cyclone . . .<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">Mauritius also has a very attractive fiscal regime for individuals which includes Income Tax of only 15%, no Dividend Tax, no Withholding Tax on Interests and Dividends, no Capital Gains Tax, no Property Tax, and free repatriation of profits.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">If this isn\u2019t attractive enough, South Africa established a double Taxation Agreement with Mauritius in 2015. The purpose of a double taxation agreement between the tax administrations of two countries is to enable the administrations to eliminate double taxation. Simply put, it means that the country of origin is entitled to tax and the individual isn\u2019t taxed in both countries.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">Thinking of island living doesn\u2019t usually equate to thinking of dying and paying taxes because of it, but there it is. It is a fact of life. Or in this instance death.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">In Mauritius there is no Inheritance Tax . . . Although it is worth noting that Mauritius follows the forced heirship rules as found under the Code Civil Mauricien which is based on French law. As such, the succession of a deceased one is different from other common law countries such as South Africa and the United Kingdom where there is the concept of freedom of testation, which allows a person to distribute their assets to anyone they wish after their death through a will.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\"><strong>Estate Duty:<\/strong><\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">On death, South African residents are liable for Estate Duty based on their worldwide assets, according to Ken Newport, National Manager Succession Planning at Capital Legacy. Estate Duty is currently levied at a rate of 20% in the case of an estate less than R30 million, and at a rate of 25% on the value above R30 million.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">However, not so commonly known is that on death, most other countries also levy an Estate Duty on certain situs assets, i.e., certain assets that are physically situated within their jurisdiction.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">Double Taxation Agreements (DTAs) between South Africa and other countries provide relief in this area as well.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">South Africans have considerable investments in the United Kingdom (UK) and the United States (US) and therefore we will briefly discuss them too.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\"><strong>United Kingdom<\/strong><\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">South Africa seems to have a propensity to have Double Taxation Agreements (DTAs) where islands are concerned. This island is a wee bit colder though.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">The UK also levies an Estate Duty on certain situs assets. In the UK this is known as Inheritance Tax. Situs or Inheritance Tax will be levied on situs assets over the value of \u00a3325 000. Any amount falling below the \u00a3325 000 threshold is known as the \u201cnil rate band\u201d and is free from situs tax. Everyone receives this \u00a3325 000 exemption. There will be no situs tax levied on any situs assets left to a surviving spouse. In addition to this, if the situs assets are left to the spouse, which results in the \u00a3325 000 exemption not being used, the exemption will roll over to the spouse. The spouse will then have a \u00a3650 000 exemption on their death.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\"><strong>United States<\/strong><\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">The tax levied on situs assets in the United States is called Federal Estate Tax. The threshold for situs tax in the US is $60 000. In the US, situs assets are taxed on a sliding scale with a maximum tax of 40%.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">However, the US does not provide this same rollover relief unless both spouses are US citizens. This means that the deceased spouse and surviving spouse must both be US citizens to qualify for the rollover relief. If neither spouse, or only one spouse is a US citizen, then Federal Estate Tax will apply and be levied on the value of the assets above US$60,000.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\"><strong>Credits and Executors<\/strong><\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">When a South African owning assets in a foreign country dies, the Estate is double taxed, in South Africa and the country where the situs assets are.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">The good news is that because of the DTAs, the executor may apply for credits payable on the Estate.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">Let us take South Africa and the UK as an example. In South Africa, a maximum of 20% tax is payable on a Deceased Estate under the value of R30 million and in the UK Inheritance Tax of 40%. If the value of the situs assets exceeds \u00a3325 000 your Estate might be liable for 20% tax in South Africa and 40% in the UK. But because SA has a DTA with the UK South Africans will be able to apply for a credit on the taxes paid in the UK.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">A credit is not automatically applied, and it is the responsibility of the Executor to ensure that the credit is applied for through Her Majesties Revenue and Customs (HMRC) and applied. This is one of the reasons that makes the role of a professional Executor of such crucial importance.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">On the one hand your Estate may pay too much tax if your Executor is not a professional, and on the other hand, the Executor may be held personally liable if all the taxes are not paid.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\"><strong>Wills and assets abroad:<\/strong><\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">One must keep in mind that different legislation might come to bear on Wills, situs assets and Estates, in different countries in the world.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">It might be a more complex process to make separate&nbsp;<span class=\"q-inline\"><a class=\"q-box qu-cursor--pointer qu-hover--textDecoration--underline Link___StyledBox-t2xg9c-0 KlcoI\" title=\"www.capitallegacy.co.za\" href=\"https:\/\/www.capitallegacy.co.za\/last-will-and-testament\/\" target=\"_blank\" rel=\"noopener nofollow\">Wills<\/a><\/span>&nbsp;if you have assets in South Africa as well as other parts of the world. It is better though if your Estate is administered simultaneously, according to the concurrent Wills and in accordance with the different applicable laws of the countries where your situs assets are.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">This will promote avoidance of difficulties and unintended consequences regarding the distribution of your Estate in different countries.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">It is clearly in your best interest to obtain professional help in drafting concurrent Wills. It is also advisable if your local legal advisor and overseas legal advisor consult with each other during the Estate planning process.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">At&nbsp;<span class=\"q-inline\"><a class=\"q-box qu-cursor--pointer qu-hover--textDecoration--underline Link___StyledBox-t2xg9c-0 KlcoI\" title=\"www.capitallegacy.co.za\" href=\"https:\/\/www.capitallegacy.co.za\/\" target=\"_blank\" rel=\"noopener nofollow\">Capital Legacy<\/a><\/span>&nbsp;you have all the required experts figuratively speaking under one roof, which simplify matters to you, the client, considerably.<\/p>\n<p class=\"q-text qu-display--block qu-wordBreak--break-word qu-textAlign--start\">This article was first published at <span class=\"q-inline\"><a class=\"q-box qu-cursor--pointer qu-hover--textDecoration--underline Link___StyledBox-t2xg9c-0 KlcoI\" title=\"www.capitallegacy.co.za\" href=\"https:\/\/www.capitallegacy.co.za\/mauritius-a-country-to-die-in\/\" target=\"_blank\" rel=\"noopener nofollow\">Mauritius country to die for<\/a><\/span><\/p>\n<p> <span class=\"post-views-icon dashicons dashicons-chart-bar\"><\/span> <span class=\"post-views-label\">Press Release Views:<\/span> <span class=\"post-views-count\">117<\/span> <\/p>\n<p> <a href=\"https:\/\/mypr.co.za\">Source: MyPR.co.za<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Republish for Free Republish This Story Republish our articles for free, online or in print, under a Creative Commons license. When thinking of Mauritius, one usually thinks of golden, sundrenched beaches, azure water, a lifestyle of leisure, and friendly people. Not to mention a very stable electricity grid, with no power blackouts, except the ones [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":226304,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[18,9021,3336,1],"tags":[3257],"class_list":{"0":"post-226303","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-durban","8":"category-mypr","9":"category-pretoria-south-africa","10":"category-south-africa","11":"tag-mypr","12":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.myza.co.za\/press\/wp-content\/uploads\/2022\/05\/mauritius-a-country-to-die-in.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/226303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=226303"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/226303\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media\/226304"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=226303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=226303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=226303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}