Page 41 - Bespoke EPG 2017 Digital

■■ It is also important to note that any donation of foreign property or the
donation of any right in foreign property (i.e. located outside of South Africa)
is exempt from donations tax if the donor acquired the property:

i) Before the donor became a resident of South Africa for the first time; or
ii) By inheritance from someone, who, at the date of his death, was not

usually resident in South Africa or in consequence of a donation from a
non-resident donor (other than a company); or
iii) Using the funds from the sale of the property referred to in (i) and (ii)
above, or if the donor sold such property and replaced it with other
properties (also located outside South Africa and purchased from the
returns on the sale of the property).

Non-residents
■■ Immovable property and movable property situated outside of South Africa,

and which belong to a non-resident, are not subject to estate duty in South
Africa.
■■ The estate of a non-resident pays estate duty on properties located in South
Africa (subject to double tax treaty relief).
■■ When determining estate duty liability, it is important to establish:
◆◆ the residence of a person
◆◆ The location of the asset(s)
■■ A non-resident is free to donate the whole or part of his South African estate
without any liability for donations tax.
This is a complex area and it is advisable to seek professional advice when
considering the impact of investing offshore on the estate plan.

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