Pointhaven work with a number of offshore trust companies in order to structure bespoke Offshore Retirement Trusts. Whether you wish to utilise your current R4 million annual offshore allowance or consolidate existing offshore assets, there are a number of advantages in establishing an Offshore Retirement Trust.
Potential Tax benefits for South African residents include:
No gift or donations tax on amounts paid into the retirement trust
No tax on income arising within the retirement trust
No tax on capital gains arising within the retirement trust
No estate duty or costly and lengthy probate upon death of the trust member
Assets pass seamlessly to heirs upon death of the member, by way of a letter of wishes.
Since 2001, if an offshore discretionary trust earned non South African sourced income or capital gains, which are vested in the hands of a South African resident beneficiary, the beneficiary will be liable for tax on the income or capital gain. Donations tax could also become payable when assets are donated into a discretionary trust; there is however no donations tax when contributing assets into a retirement trust – a significant benefit for a South African resident investing offshore via a retirement trust.