3.8. Intellectual property (South African Resident Individuals)

The transfer of South African owned intellectual property by way of sale, assignment or cession and/or the waiver of rights in favour of non-residents in whatever form, directly or indirectly, is not allowed without the prior written approval of the Financial Surveillance Department.

South African residents may, however, sell, transfer and assign intellectual property to unrelated non-resident parties at an arm’s length and a fair and market-related price, provided they present to Authorised Dealers the sale, transfer or assignment agreement and an auditor’s letter or intellectual property valuation certificate confirming the basis for calculating the sale price. The dispensation excludes sale and leaseback agreements.

All inward funds emanating from such transactions must be repatriated to South Africa within a period of 30 days from the date of becoming entitled thereto.

South African residents may license intellectual property to non-resident parties at an arm’s length and a fair and market-related price for the term of the agreement, provided that they present Authorised Dealers with the licence agreement and an auditor’s letter confirming the basis for calculating the royalty or licence fee.

All royalties and/or fees emanating from such transactions must be repatriated to South Africa within a period of 30 days from the date of becoming entitled thereto.

The sale, transfer, assignment and/or licensing of intellectual property is subject to appropriate tax treatment.