Amendments to South African IP Exchange Control Guidelines
In February, in an article on the 2017 South African budget review, we wrote that the government had proposed that companies and individuals no longer required approval from the South African Reserve Bank (“SARB”) for “standard intellectual property transactions” and that the “loop structure restriction for all intellectual property transactions” be lifted, provided that such transactions are arm's length and at a fair market price.
a) registration with the Financial Surveillance Department; b) the established offshore company must be a tax resident in South Africa; c) full details of the percentage shareholding in the offshore company including the group structure must be provided; and d) an annual report must be submitted to the Financial Surveillance Department on the operations, including details of funds raised offshore.”
This relaxation has been introduced to further assist South African companies in overcoming the challenges that they face in being able to tap into international venture capital markets. Hopefully, this amendment will encourage more companies to make use of the dispensation. For advice on exchange control matters relating to IP, please contact:
IP director rsikwane@ENSafrica.com cell: +27 83 529 3639
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