SA Reserve Bank eases exchange controls for loop structures - but there's a tax catch, warns expert

This week the SA Reserve Bank released a circular in which it eased exchange controls connected to 'loop' structures. Dissecting the details for the BizNews community is Robyn Berger, a partner at Bowmans. A loop structure arises where a South African exchange control resident (individual or company) has an interest in a foreign structure and that foreign structure directly or indirectly owns assets in the Common Monetary Area consisting of South Africa, Eswatini, Lesotho, Namibia and South Africa. Until recently, these structures were permitted only in very limited circumstances. Learn more about your ad choices. Visit megaphone.fm/adchoices