Aditi Boolell explains the new immigration and work permits for South African citizens wishing to leave the country. Given the complexity of these new immigration procedures, Temple Group, she says, has partnered with Tax Consulting SA to provide a whole range of services to expatriates undergoing this process.

Temple Group organized recently, in partnership with Middlesex University, a workshop on South Africa Double Taxation Policy, Immigration and Work Permits for expatriates. What was the rationale behind this event?
In the past few years, we have seen an increase in the number of individuals seeking to move from South Africa to Mauritius. Given this context, we believe it is worth raising awareness on the various considerations for individuals undertaking this process.

One needs to know that the wider implications of this decision are farreaching and will have a direct effect on their lives. Particularly on their residential status, the rights of their family members or dependents, their ability to work in Mauritius and also, how they organize and structure the revenue from their assets as well as the way they intend to carry out their succession planning.

Alongside the tax framework and the immigration procedures in Mauritius, there is also an administrative process which needs to be carried out in the country from which they are moving. Temple Group has partnered with Tax Consulting South Africa to provide a holistic, endto-end service support for people undergoing this process.

“Mauritius has always welcomed all nationalities and ethnicities, (…) mutual regard and enhanced harmony are happily making progress.”

What are the main features of this SA taxation and immigration policy?
As you must be aware, all these taxation and immigration policy features have been thoroughly discussed in our informative session held on 28 February. We have had the visit of Jonty Leon, legal manager at Tax Consulting South Africa (TCSA), who made his way from South Africa to discuss provisions of the new framework impacting on South Africans seeking to live, work or invest outside their country.

One of these new measures linked to financial emigration is an increase in the threshold for the exempt amount for foreign remuneration from 1 million ZAR in 2019/2020 year to 1,25 million ZAR, that is from Rs 2,5 million to Rs 3,1 million. The new policy also makes clear differences between using the double taxation agreement and the process of financial emigration.

As Lead Advisory within the Corporate Cluster of Temple Group and Head of the Expat Desk, you explained during this session some key changes in the law in Mauritius since 2019. Could you elaborate?
Definitely. I have elaborated some of the newer schemes that have been made available by the Economic Development Board (EDB), relating namely to Occupation Permits as Investor (Innovator) category and the new Occupation Permit available to young professionals. It is important to dwell upon these new schemes as there is an often mistaken fact that a residence permit grants tax residence. I have also discussed the issue of succession planning for expatriates holding assets in Mauritius.

It is to be noted that for companies operating in SA and other parts of the world, the very fact of setting up another company in Mauritius for the same type of business and with the same shareholders does require proper pre-incorporation advisory so that “Transfer Pricing” is not inadvertently initiated. Besides, from the audience’s questions, I have had the opportunity to respond to frequent issues faced by persons making this shift and discussed some aspects which they should consider at the outset of the immigration process as they have longer term repercussions. These include families with dependents, and the impact on persons who decide to formalize their financial immigration status but afterwards change their minds further down the line.

More generally, how do you see the role of Temple Group assisting SA expats to settle in Mauritius?
The relocation process can be an administratively complex one – the more so that this process includes a very human aspect, which is uprooting a whole family from one jurisdiction to another and helping them to get the reassurance that they will be able to financially and socially cater to their needs once in Mauritius. Proper support is crucial so that the scenario which best meets the requirements of the individuals and their families can be found. There is a lot of groundwork and expert advice which are required not only at the stage of making an application to relevant authorities but also in getting the affairs in order prior to taking these steps.

It is necessary to ensure complete regulatory compliance to avoid scrutiny from the taxation authorities in the context of financial emigration. Additionally, the process of relocation with the transfer of assets, the opening of new bank accounts and the setting up of new investment vehicles, etc. require legal and administrative handholding which Temple Group is equipped to provide under a single roof.

How do you respond to Mauritians claiming that the concentration of SA expats in the western region is posing threats to the social fabric of the island?
Given its history, Mauritius has always welcomed all nationalities and ethnicities, and whilst there may have been some social learnings from all sides, mutual regard and enhanced harmony are happily making some progress, coupled with an updated legislative framework for residential developments that encourage inclusive societal living.

Temple Group has now a new office in Tamarin, on the west coast, and one also in South Africa…
Yes, Temple Group has opened an office in Tamarin since February 2020. It will allow us to be in closer proximity and more accessibility to our clients living in the Western part of the island, with a key focus on the general expat community settled there. We are also geared to be more present with our South African clientele, with our partners from Tax Consulting South Africa whose offices are located in Jo’burg.