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Insurance Wrapper Portfolio

The publication by the South African tax authorities (SARS) can be found on their website (www.sars.gov.za ). The Commissioner issued the ruling by means of an Advanced Tax Ruling (ATR).

What is an off-shore private banking wrapper?

The concept stands for the incorporation of your off-shore assets in a tax-compliant structure that takes care of your investment, tax and estate planning strategy in one single tailor-made solution.

The wrapper was launched in South Africa in 2006 for SA tax residents with assets outside South Africa.

What are the tax implications?

The introduction of the principle of the worldwide tax system in South Africa, combined with a new definition of a tax resident, has given many off-shore investors a heavy tax burden and a complicated tax return.

In South Africa, the transfer of assets to the wrapper will result in a "swap" from any income tax (highest marginal rate 40%) to a capital gains tax, CGT, which effective maximum rate is 10%. Due to the calculation formula issued by SARS for the determination of CGT on foreign policies, most investors do not pay any taxes.

There is no taxes payable on interest, dividends and capital growth etc. as long as the assets remain in the structure. CGT will only apply upon withdrawal or termination of the concept.

Beneficiaries in the event of your death will also benefit from tax concessions when it comes to the payout of the insurance contract.

Please note that The "Insurance Wrapper" can give the investor tax advantages not only in South Africa, but in other tax jurisdictions as well.

Individuals that are liable for taxes in the U.S.A. can also use this structure. They can now invest in the US stock and bond markets without having to disclose their identity towards the US authorities.

Which institutions are involved?

The insurance platform is provided by an insurance company in Liechtenstein. The custodian banks are currently UBS, Credit Suisse, Julius Bär and Luzerner Kantonalbank. Other banks can be incorporated, but need to be domiciled in Switzerland.

In order to retain the above tax concessions, you need an asset manager, either at your custodian bank or you can appoint an independent advisor.

We have carefully selected first class partners for our network that are able to offer our clients superior knowledge and service.

What is the risk involved - how secure are my assets?

Your assets are legally protected and cannot be touched by creditors, plaintiffs, insolvency, governments etc.

Further, the following security aspects have been taken care of:

The only risk remaining is the investment risk - you determine your own investment strategy together with your asset manager.

How does the wrapper work in practice?

In a first step, your personal circumstances details (tax residence, estate planning, investment strategy etc.) are analyzed with utmost confidentiality by our partners in Switzerland. A proposal is then forwarded to you.

If you accept the proposal, the insurance company issues the policy and an account at one of the custodian banks is opened. Existing assets such as shares, bonds, cash, mutual funds, private equity etc. are then transferred to the bank. THERE IS NO NEED TO SELL EXISTING ASSETS, as they are held within the insurance policy in your name.

Who could benefit from the structure?

The following categories of investors can benefit:

What other aspects should I consider?

What are the costs involved?

The costs involved are all-inclusive and are transparently priced. There are no hidden costs and commissions.

The costs depend on the investment amount. There is an initial fee to set up the structure (analysis and recommendation, opening of bank account, transfer of assets and issuing of policy), as well as an ongoing fee. The following components apply:

Please note that the minimum investment amount is Swiss Francs (CHF) 250'000.

Where can I obtain more information?

You can contact Mr. Hug ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) if you would like to set up a confidential meeting.