International Personal Pensions
Equilibrium IPP
Equilibrium Pensions is able to provide international pension solutions across the globe. The locating jurisdiction of the pension is the Isle of Man which receives no taxable benefit from the assets held within the pension. There is no capital gains tax and no tax on benefit withdrawals. This is unique at present. Whilst there is no tax payable on benefit withdrawals there is also no tax relief on the contributions made
Key Features
No upper limit on Employer or Personal contribution levels.
Flexibility in drawdown.
Zero withholding tax on benefit withdrawls.
There is considerable flexibility as to eligible assets/investments (in accordance with the Statement of Investment Principles).
The scheme will benefit from the gross roll up of income from investments.
The Isle of Man is well regulated, with over 1,000 years of stable democratic Government.
The Equilibrium IPP is simple in operation.
The member can decide the jurisdiction where he/she is to retire.
Retirement age is not prescribed.
Individual control over the way in which the assets are invested, in the currency of your choice.
South Africa
Equilibrium Pensions specialises in the creation and cost effective administration of pensions tailored for South Africans who are or have worked outside South Africa. These South African born nationals work as Expatriates or AfriPats and want the ability to retire wherever they wish, and if they retire back to South Africa they wish to enjoy the benefits of their pensions in a wholly tax free environment.
South Africa (RSA) levies no tax arising from foreign pensions under the Income Tax Act 58 of 1962. The aim of this legislation is the entirely self fulfilling one of promoting RSA as a destination for retiring pensioners who have worked and saved all their lives in other countries.
These rules were amended in March 2017 in which the exemption of foreign pensions from South African income tax will only apply to amounts received or accrued from a foreign retirement fund or amounts that were transferred to a local retirement fund from a foreign retirement fund and constitute consideration for services rendered outside South Africa in terms of past employment.
Any RSA resident who has never worked ex RSA in any meaningful capacity should be very wary of schemes promising to externalise their allowances and capital into open ended schemes.
Employers whose RSA based pension schemes have expatriate or AfriPat workers within the main RSA fund should look as a matter of urgency into setting up a genuine offshore arrangement for those employees that comply; this would allow those fulfilling the criteria (of working ex RSA) to benefit from: CGT free capital growth, No donations tax, No income tax on growth, No Currency or exchange taxes, 0% tax on benefit withdrawals and a well regulated and supervised environment.