Corporate Services Blog

January 04th 2021

Russia and Luxembourg Double Taxation Agreement

Double Taxation Agreements (DTA) are a means of reducing the tax burden on cross-investments which otherwise might be susceptible to being taxed twice on the same transaction and therefore possibly decreasing the appetite for cross border transactions and therefore hindering expanse of business.

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December 10th 2020

UAE Conclude Peace Deal With Israel

The treaty which was signed on the 15 September 2020 was formally ratified by the Israeli cabinet on the 12 October 2020 and the UAE parliament on the 15 October 2020 and is intended to remove barriers to business
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October 24th 2020

Foreign Investors to be Allowed to Invest in Debt Instruments in Saudi Arabia

Saudi Arabia has recently made announcements concerning both resident and non-resident foreigners which will enable them to be able to invest in both listed and non-listed debt instruments.
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September 24th 2020

Carried Interest Relief in Hong Kong

The Government in Hong Kong has released a consultation with regards to introducing tax concessions for carried interest distributed by private equity funds.  If approved the relief will come into effect retrospectively from 1 April 2020.
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September 14th 2020

Dubai Family Joint Ownership Law

On the 13th August 2020 Dubai issued its ‘Regulating Family Ownership Law No.9 of 2020’.  This allows family members to customise and enter into a legally binding contract to enable joint ownership and administration of a wide variety of property excluding publically quoted shares.

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August 28th 2020

Positive Advantages of Setting up a Trust or Foundation

Recent studies and reports have shown that Foundations, Family Offices and Trusts are ideal vehicles in which to drive positive social change.

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August 21st 2020

Mauritius

Mauritius is an island in the Indian Ocean which has become a popular location when dealing with offshore companies and structuring.
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August 17th 2020

Hong Kong’s New Limited Partnership Regime

The Limited Partnership Fund Bill which was announced in March has been officially passed on the 9 July 2020 and will come into force on the 31 August 2020.
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August 07th 2020

Bermuda Trust Firewall Provisions

Bermuda has announced amendments to it Trusts (Special Provisions) Act 1989 in an effort to strengthen its protective provisions and enhance its competitiveness with other jurisdictions.

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July 23rd 2020

Wales reduce rate of LTT

We reported earlier in the month regarding the temporary increase in the SDLT nil-rate bank for England and Northern Ireland in response to the Covid-19 crisis and also the LBTT holiday announced in Scotland.

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July 17th 2020

Temporary increase in Nil-Rate Stamp Duty Land Tax

Previously in England and Northern Ireland the nil-rate band for stamp duty land tax (SDLT) was £125,000.  The government announced on the 8th July 2020 that it has now increased this to £500,000.
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July 14th 2020

Migration of Limited Partnerships into Jersey

Jersey is set to introduce a statutory migration process whereby provided that foreign limited partnerships are solvent and migration is not prohibited in their jurisdiction they can now relocate with ease.
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June 22nd 2020

Corporate Insolvency and Governance Bill

In a public briefing on the 28th March 2020 the UK government announced that due to the Covid-19 pandemic they plan to introduce The Corporate Insolvency and Governance Bill.
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June 15th 2020

Why foreign investors are choosing Cyprus as the most popular investment hub

After the financial crisis Five years ago that rocked the nation and with the recent covid-19 pandemic, Cyprus continues to proves that it remains one of the most attractive business jurisdiction for International Companies.
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June 12th 2020

New Dividend Withholding Tax System in Denmark

On the 18 May 2020 Denmark announced its new dividend withholding tax regime. 

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June 01st 2020

New Clauses to the Finance Bill 2020 for Off-payroll Working

We reported recently on the House of Lord criticism of the IR35 rules. However it looks like as of 6th April 2021 the UK government will move ahead with introducing these.
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June 01st 2020

Scotland Extend Relief Period whereby Homeowners can hold Two Properties

Due to a stagnant housing market caused by the covid-19 virus Scotland has announced that homeowners now have three years to sell their original home as opposed to eighteen months where they still have the right to reclaim land and buildings transaction tax (LBTT).

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May 15th 2020

Cyprus to announce their fast track processing in relation to the Cyprus Investment Program (CIP)

Cyprus is a very popular destination in relation to foreign investment especially in the most recent few years. In 2018, Cyprus was graded 8th out of the top 20 countries globally as per the Global Finance Magazine’s Foreign Direct Investments (FDI) performance and appeal.
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May 12th 2020

DMCC / DED Dual Licensing Scheme

Dubai is a popular offshore destination with a number of registries offering various options to incorporate companies under.  The Dubai Multi Commodities Centre (DMCC) is one such registry and has the reputation of being the world’s flagship free zone.
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May 07th 2020

Caymans to Introduce New Regulatory Framework for Virtual Asset Investments

On the 28 April 2020 The Cayman Islands published draft legislation with regards to new regulatory framework for companies wishing to utilise virtual asset investments such as Bitcoin
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April 01st 2020

India to Abolish Dividend Distribution Tax

Currently there is a 15 % tax on companies making a dividend distribution.  As announced in India’s federal budget on the 1 February 2020, this is now to be replaced with a 10% withholding tax on recipient shareholders.  
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India to Abolish Dividend Distribution Tax
September 07th 2018

Reserve Bank of India Further Relaxes Rules of Foreign Direct Investment in LLP’s

We reported previously on the Reserve Bank of India’s (RBI) decision to allow up to 100% foreign direct investment (FDI) under the automatic route, whereas previously it required approval. 
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August 08th 2018

BVI Reduces Measures for Four More Jurisdictions

Last year the British Virgin Islands extended its list of ‘recognised Jurisdictions’ to include Andorra, Monaco, St Lucia and Uruguay.  These countries are now considered to have money laundering regulations on par with the British Virgin Islands and their inclusion in the list means that there is reduced due diligence measures between them and the BVI.
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May 15th 2018

100% Foreign Ownership in Bahrain

Bahrain has reduced the restrictions on foreign ownership and is making comprehensive changes to its corporate laws and procedures to allow for easier company incorporation and a modernization of its administration process.
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March 12th 2018

The Cayman Islands Trusts (Amendment) Law 2016

The amendment which was gazetted on the 23 November 2016 is intended to modernise the previous Trust law and introduces a couple of provisions designed to correct technical issues in the original legislation.
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December 28th 2017

Cyprus as an alternative for UK Financial Sector

With concerns over a ‘hard’ Brexit and the UK’s ability to secure an agreement that will still allow
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November 15th 2017

United Kingdom and United Arab Emirates Double Taxation Agreement

The double taxation agreement is the first between these two countries and was signed on 12 April 2016 and came into force on the 25 December 2016
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October 20th 2017

UK Treasury’s Response to Consultation on Taxation of Offshore Trusts

Plans to tax UK residents on payments from offshore trusts are being seriously reconsidered by the UK government due to fears that wealthy foreigners might consider leaving the UK.
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October 18th 2017

Dubai’s New Wealth Management Working Group

Dubai is one of the most popular modern jurisdictions.  This is due to a number of reasons, not least its extremely attractive tax regime, but also its reputable image and its focus on providing fiduciary services tailored to meet modern international requirements.
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October 05th 2017

Proposed Amendments to Jersey Trust Law

Last year Jersey issued a consultation paper proposing a 7th amendment to revise the Trusts (Jersey) Law 1984 in twelve areas where it is thought the legislation could benefit from modification.
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October 05th 2017

Cyprus abolishes immovable Property Tax

Last year the House of Representatives voted to allow a 75% discount on immovable property tax (IMT) if paid by 31 October 2016.  At the same time it was approved to abolish this tax completely from 1 January 2017.
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October 05th 2017

Luxembourg Adopts New Tax Law

On the 13th July 2016 Luxembourg adopted Bill 5730, which is hoped will modernise and streamline its corporate environment.
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August 18th 2017

Residence Nil-Band Rate

The introduction of the residence nil-rate band for inheritance tax announced by George Osbourne in July 2015 in the United Kingdom was introduced in stages from 2017 has led to a good deal of questions.
Previously inheritance tax was at 40% of anything over £325,000 for a single person.  
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August 18th 2017

Is Jersey the Best Fund Administration Centre?

According to the Investment Week Fund Services Awards for three years in a row it was.  Although Investment Week Fund Services are not the only entity to recognise Jersey who has also received awards and recognition from the likes of Citywealth IFC and WealthBriefing European.
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August 18th 2017

India Reforms to FDI Rules

We reported on the 20 February 2016 regarding the Indian government’s decision to reverse retrospective tax on foreign funds.  It has long been the case that some foreign companies are reluctant to invest in India due to its unpredictable tax regime, but the government seems to be sticking to its promise to change this.
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June 29th 2017

Reform of the Substantial Shareholdings Exemption

Early last year the HM Treasury published its consultation on the potential reform of the Substantial Shareholdings Exemption (SSE).  This exempts the disposal of certain types of shares in subsidiaries from corporation tax or capital gains.
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June 29th 2017

New Alternative Banking Regime in the Isle of Man

The new Alternative Banking Regime which came into effect on 1 August 2016 allows two additional types of banking licences in relation to deposit taking.
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May 08th 2017

Cyprus and Latvia Double Taxation Agreement

On the 24th May 2016 Cyprus and the Government of the Republic of Latvia signed the treaty for the avoidance of double taxation on income in Brussels.

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May 08th 2017

The Cayman Islands 2016 Data Protection Bill

In April 2016 the Cayman Islands released The Data Protection Bill 2016.  This bill is designed to balance the rights and duties to safeguard individual’s personal data against public authority requirements.
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May 08th 2017

Gibraltar’s Limited Liability Partnership Act

Earlier last year on the 24th March 2016 the Limited Liability Partnerships Act (‘LLP’) came into force in Gibraltar adding to an already expanding choice of products that Gibraltar has to offer.
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March 08th 2017

HMRC not to remove Non-Dom Tax Concession Retrospectively

HMRC had previously planned to retrospectively crack down on loans secured using overseas income or capital gains to purchase UK property.  However following a reversal on this many wealthy property owners will be greatly relieved.
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February 01st 2017

Bermuda to Introduce LLC’s

On the 1st July 2016 Bermuda introduced legislation to enable the formation of entities very similar to Delaware limited liability companies (LLCs).
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February 01st 2017

Reforms to The Singapore Companies Act – Phase 2

Further to our blog dated 30 September 2015 in which we reported on the first phase of the reforms introduced in July 2015 to The Singapore Act in connection with The Companies (Amendment) Bill 2014 we now summarise the second phase below, which came into effect on the 3 January 2016:-
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February 01st 2017

Cayman Islands Application for AIFMD Passport

The Alternative Investment Fund Managers Directive (AIFMD) initially was only available to EU countries, but subsequent to vigorous assessment a ‘third country’ passport is still being considered for a further twelve non-EU entities.
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November 14th 2016

The BVI Business Companies (Amendment) Act 2015

We reported in September of last year on the recommendations that the British Virgin Islands (BVI) was implementing as part of a commissioned report in order to conform with modern challenges so that the BVI could maintain its position as one of the most attractive jurisdictions for offshore incorporations.

 
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November 03rd 2016

The Cayman Islands as a Financial Centre

There is much talk about The Cayman Islands as one of the largest financial centres.  
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October 20th 2016

The Cayman Islands New Limited Liability Company

On the 18 December 2015 The Cayman Islands published its new law to allow for the formation of its new vehicle, the Limited Liability Company (‘LLC’).
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October 13th 2016

BVI Most Important Offshore Jurisdiction for 6th Year in a Row

For the sixth year in a row the British Virgin Islands has been named the most important offshore financial services jurisdiction by OIL’s annual offshore 2020 report.  Since the study only began in 2010 this means that the BVI has maintained the top spot since inception.
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October 07th 2016

How the Lifting of Iran’s Sanctions Affect the United Arab Emirates

Sanctions against Iran were lifted on the 16 January 2016 when an agreement to curb Iran’s nuclear programme and allow UN inspections was reached, ending more than ten years of crippling restrictions. 
 
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September 29th 2016

Why Indians are the Largest Non-Arab investors in Dubai

Indians have been the top non-Arab investor in the UAE since 2012.  In 2014 the number of Indians investing in the real estate market in Dubai was double that of the nearest other non-Arab investor, which was Britain. 
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September 23rd 2016

South Africa and Hong Kong Double Tax Treaty Enters into Force

The agreement which was signed in October 2014 has now been ratified by both parties and entered onto force on the 20th October 2015.  It applies in South Africa from 1 January 2016 and in Hong Kong from 1 April 2016.
 
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September 19th 2016

South African New Test for Effective Management

On the 3rd November 2015 the South African Revenue Service (SARS) issued an Interpretation Note in order to clarify the tax residence of a company based on its place of effective management (POEM). 
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September 14th 2016

Isle of Man one of the first Jurisdictions to introduce Crypto Currency Legislation

On 26 October 2015 the Isle of Man instigated initial legislation to regulate Crypto Currency making it one of the first jurisdictions in the world to do so, second only to New York whose rather disastrous attempt in August 2015 resulted in the loss of numerous Bitcoin businesses.
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August 29th 2016

Gibraltar to Introduce Private Foundations

On the 15th October 2015 Gibraltar published draft legislation for public consultation.  The legislation was to introduce the Private Foundations Act 2015 and the Limited Liability Partnerships Act (Amendment) Regulations 2015.  The closing date for the consultation was the 30th November 2015.
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August 09th 2016

Abu Dhabi’s Financial Services Regulatory Authority

We wrote in May of last year regarding the new Abu Dhabi Global Market (‘ADGM’), which is an international finance centre in the United Arab Emirates and is independent of the existing legal regime in Abu Dhabi.  This is governed under the same law under which the Dubai International Finance Centre was established and is based on English law.
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August 09th 2016

Nevis Improves on Its Corporation, LLC and Trust Laws

On the 1 July 2015 Nevis made a number of significant amendments to its existing Corporation, LLC and Trust laws making it a very attractive jurisdiction, especially for those whom asset protection is of primary concern.
A summary of some of the more notable changes can be found below:-
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June 29th 2016

Why International Traders are choosing the UAE

In today’s global environment, businesses are not limited to domestic incorporations.  Offshore incorporations are no longer just for large elite global corporations, but offer many advantages to medium and even small sized businesses and competition is high between the various jurisdictions.  That said we take a look at why so many international traders are choosing the United Arab Emirates for their incorporations.
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June 29th 2016

The Most Competitive Economies for 2015

Due to the evolution of IT and travel the world is no longer a small place especially when it comes to companies, who no matter the size are increasingly having a global presence.  With that said and well into the new year we take a look back to assess the most competitive economies of 2015.
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June 29th 2016

Corporate Tax Rates

When choosing to establish an offshore company a lot of emphasis is usually placed on tax.  This is not always the case however.  Offshore jurisdictions can offer quite a broad spectrum of advantages.  This becomes clear when we look at the Corporate Tax Rates for some of the most popular jurisdictions and see that this includes not only the lowest tax rate (0%), but also the highest (35%).
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June 03rd 2016

Finance Bill Amendments to Inheritance Tax Rate Impact on Trusts

On the 14th September 2015 the UK Government proposed amendments to the Finance Bill 2015 to clarify in relation to trusts following the introduction of a residence nil-rate tax band to the inheritance tax. 
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May 25th 2016

Changes to UK Taxation of NON-DOMS

Plans by the UK government to treat any individual who has been resident in the UK for at least fifteen of the past twenty years as UK domiciled for tax purposes will come into effect from April 2017. 
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May 20th 2016

Tax Considerations for Non-Resident Investors in UK Commercial Property

Investment in property in the UK has experienced a rapid growth by overseas investors in recent years due to increasing property values and a favorable tax regime.  However, when investing in UK commercial property it is extremely important to consider the structure of the investment first in order to maximize benefit from this tax regime. 
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May 17th 2016

Changes to Tax Relief on Cost of Repairs on Rented Property

From April 2016 the rules have changed regarding tax relief on rental income against cost of repairs.  Previously a fixed amount of 10% allowance could be claimed, known as the wear and tear allowance, even where landlords had not undertaken any work. 
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May 06th 2016

Guernsey Extends Access to EU under AIFMD

The European Securities and Markets Authority had now recommended that Guernsey and Jersey be granted a ‘third country’ passport under the Alternative Investment Fund Managers Directive (AIFMD)
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April 27th 2016

Lawyers Opposed to charges on HMRC Challenges

The UK Government has put forward proposals to introduce fees for individuals challenging decisions to the tax tribunal.  This has brought about strong opposition from trade bodies who represent lawyers and accountants across England and Wales.
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April 20th 2016

Indian Government Backs Down Regarding Tax on Foreign Funds

Further to our blog on the 30th October 2015 where we reported that the Indian government had suspended its decision to allow retrospective levy’s of minimum alternate tax (MAT) following objections pending a report from a special government committee on the tax’s applicability to foreign investors we can now report that India’s finance minister has confirmed that they will no longer attempt to impose this retrospective MAT on overseas investors.
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April 07th 2016

China Relaxes Restrictions on Foreign Property Ownership

The threshold for foreign capital in order to invest in the country’s property market has now been reduced in a decision by the State Council which has been jointly published by six government departments, meaning that foreign investment into real estate in China whether by an overseas company or individual is now a lot less restricted.
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April 07th 2016

ATED Relief Forms

Further to our blog of the 2nd July 2015 where we reported on the HMRC’s plans to simplify claims for ATED relief we can now report that the HMRC has published the forms required to claim relief.
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March 29th 2016

The British Virgin Islands New IP Regime

The British Virgin Islands has introduced a new intellectual property regime by enacting the Trade Marks Act 2013 and the Trade Marks Rules 2015 which came into force on 1 September 2015.  This has replaced the local and UK trade mark rules which have been in force in the BVI for over a century.
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March 18th 2016

Jersey signs Agreement with Seychelles

The Double Tax Agreement was signed between Jersey and the Republic of Seychelles in London on 28 July 2015.
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March 18th 2016

Guernsey and Jersey granted ‘third country’ passport under AIFMD

The European Securities and Markets Authority have now recommended that Guernsey and Jersey be granted a ‘third country’ passport under the Alternative Investment Fund Managers Directive (AIFMD).  These passports are currently only available to EU entities, but this recommendation means a possible extension to non-EU entities.
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February 04th 2016

Hong Kong Tax Exemption for Offshore Private Equity Funds

The introduction of The Inland Revenue (Amendment) (No.2) Ordinance 2015 which was enacted as of 17 July 2015 has brought about the extension on profit tax exemptions on specified transactions conducted by offshore private equity funds or their special purpose vehicles.
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February 04th 2016

Cyprus Tax Amendments

The Cyprus House of Representatives has made a series of tax reforms on the 9 July 2015 in order to make the jurisdiction more attractive.
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February 04th 2016

UAE Free Trade Agreement with Switzerland

The Free Trade Agreement was signed between the countries in June 2009, but was not effected until July 2014 and has now been fully implemented as of 1 July 2015
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January 11th 2016

South African Foreign Trust Distribution Tax Ruling

On 1 July 2015 The South African Revenue Service (SARS) published ruling No 197 whereas a South African resident receiving a distribution from a foreign trust and then subsequently using  this to buy foreign property and having a disposition of assets would not be liable for the following taxation;
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December 31st 2015

Zero Corporation Tax in Ireland

Start-up companies in Ireland can benefit from an exemption from paying corporation tax for the first three years of their existence.  The purpose is to alleviate some of the burden and allow new companies to get abreast of any cash flow problems without the additional worry of corporation tax.
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December 24th 2015

Reforms to The Singapore Companies Act

In October 2014 The Companies (Amendment) Bill was passed by Parliament, this amendment was the consequence of a comprehensive review of the Companies Act which began in 2007.
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December 10th 2015

Favourable Clauses for FATCA

During the negotiation stage prior to the implementation of the Foreign Account Tax Compliance Act by the US the British Virgin Islands managed to negotiate what the US Treasury is referring to as ‘more favourable terms’ than earlier executed versions of the intergovernmental Agreements (IGA).
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December 03rd 2015

High Net Worth Migrants

In the last two decades migration has seen a dramatic increase leading to a lot of negative press. 
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November 05th 2015

HMRC Agrees No Resettlement for Tax Purposes on Trust Perpetuity Extension

Trusts in the United Kingdom created on or after 6 April 2010 when the Perpetuities and Accumulations Act 2009 came into force automatically have a perpetuity period of 125 years even if the trust document specifies a different period.  It is not allowed to extend the perpetuity period of trust created before this date.
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October 30th 2015

Indian Government Suspending Retrospective Tax Demands

Following objections to India’s decision to allow retrospective levy’s of minimum alternate tax (MAT) on previous year’s investment returns this has now been suspended and the government has now clarified that the tax department will neither pursue fresh MAT claims nor act on previous ones until a special government committee has reported on the tax’s applicability to foreign investors.
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October 22nd 2015

New Rules to Effect the use of Multiple Trusts

In the Budget held in the UK in early July it was confirmed that estate planners may continue to use multiple trusts as a means to manage assets particularly in the event of death providing that they are set up and funded on different days.
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October 15th 2015

UK Corporation Tax the Lowest of the Major Economies

In 2013 the Chancellor of the Exchequer announced plans to reduce the corporation tax to 21% from 1 April 2014 and to 20% from the 1 April 2015.  This reduction which has now come into force means that Great Britain has the lowest corporation tax rate of any of the G7 member states and the lowest joint rate in the G20.
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October 08th 2015

Cyprus as a favourable IP Jurisdiction

Intellectual property can be a very valuable asset, therefore it is important to choose the right location in order to protect this.
Cyprus is a very competitive location when it comes to the protection of intellectual property.  With a single IP registration in Cyprus, IP rights owned by Cyprus companies may enjoy full protection in all EU member states in addition to the protection offered due to Cyprus’s participation in all the major IP treaties and protocols.
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September 30th 2015

Guernsey Retains AA+ Credit Rating

International credit rating agency Standard and Poor’s have announced that Guernsey has retained its AA+ rating.  Guernsey’s revenue flexibility and sizable assets combined with the government’s robust fiscal position have been cited as reasons for the high rating.
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September 24th 2015

Rebranding of the BVI International Finance Centre

The BVI is currently implementing recommendations received via a report that it commissioned in 2014 by the consultancy firm McKinsey and Company.  This rebranding comes thirteen years after the initial creation of the BVI International Finance Centre.
The report was commissioned as a result of the modern challenges facing the industry including growing competition.  As a result the BVI has set up the Financial Services Implementation Unit whose priority is to implement the ten most pressing recommendations of the forty that were included in the report. 
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September 17th 2015

Jersey signs agreement with Rwanda

Jersey’s External Relations Minister Philip Bailhache signed the tax agreement at a ceremony in London on Friday 26th June 2015, making this the ninth Double taxation Agreement that Jersey has entered into, but their first with an African country.
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September 11th 2015

Memorandum of Understanding to Clarify South Africa/Mauritius Residence Rules

Further to our article dated 1 July 2015 in which we reported on the revised treaty between South Africa and Mauritius which will come into effect from the 1 January 2016 in which we raised the uncertainty surrounding companies with dual residency which will now be decided by ‘Mutual agreement’ by the two states, we now look more closely at the memorandum of understanding between the two countries which has been signed in order to clarify the controversial issue of residence.
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September 03rd 2015

New Dubai Wills and Probate Registry

Currently the distribution of assets in Dubai is guided by the UAE federal law.  This can cause problems for non-Muslims owning assets in the emirate due to the forced heirship provisions in accordance with Sharia Law.  There is no right of survivorship concept in the UAE meaning that where property is owned jointly it does not automatically pass onto the surviving owner which can cause significant problems for investors.
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August 27th 2015

Dubai as an Offshore Corporate Choice

Dubai is the largest city in the United Arab Emirates and has long since established itself as a stable and well known Jurisdiction, but in recent years the growth in wealthy persons doing business or holidaying there has really highlighted the area as one to be respected and led to it to becoming one of the fastest growing jurisdictions in the world.
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August 20th 2015

Scottish Land Reform Does Not Exclude Foreign Ownership

Original proposals announced in November and December 2014 for the Scottish Land Reform Bill made by the Scottish Nationalist Party included prevention of non EU companies, Trusts and Partnerships from buying land.  However the Reform which was published on 22 June 2015 has not included this proposal.
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August 13th 2015

New South Africa Treaty and its Effects on Mauritius Holding Companies

Mauritius has long been a favourite destination for both investment into South African as well as for South African investment abroad, but this may be about to change when the new agreement comes into force on 1 January 2016.
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August 06th 2015

British Virgin Islands Introduces Two New Fund Products

The British Virgin Island has created two new fund products, the ‘incubator fund’ and the ‘approved fund’.  Both of these are aimed at start-up funds of small to mid-sized non-institutional investment managers in an effort to overcome some of the more vigorous regulatory obligations which can be off putting to fund managers who are just starting out.
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July 30th 2015

Amendments to Isle of Man Trust Law

In May the Isle of Man presented to Tynwald the Trusts (Amendment) Act 2015 which was expected to become operational on June 16 2015.
One of the most important amendments was in connection with powers of foreign court orders.  The Isle of Man already has protection covered in the Trusts Act 1995 which introduced the exclusion of foreign law in relation to trusts covered by Manx law in relation to forced heirship rights and protection against judgements made in connection with foreign divorce law.
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July 24th 2015

UK Abolishes Bearer Shares

The UK is one of the last jurisdictions to abolish bearer shares with all UK shareholders having had to surrender their bearer shares by the 26 June for conversion into registered shares.  Any bearer shares that remained unconverted will effectively become worthless as of 26 December 2015 and will no longer be able to be transferred.
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July 17th 2015

New Companies Act Introduced in Ireland

As of the 1st June 2015 the Companies Acts 1963-2013 has been replaced with the Companies Act 2014 in Ireland.
It is believed that this Act will modernise and simplify company law and hopefully reduce administrative burdens.
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July 02nd 2015

HMRC to simplify claims for tax relief for ATED

The Annual Tax on Enveloped Dwellings was introduced on 1 April 2013 and is a tax charged on companies or partnerships that hold property in the UK initially valued at more than £2m. In recent moves that valuation has changed to include properties valued at between £1m and £2m and will include properties exceeding £500,000 from April 2016.
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June 25th 2015

Areas to be considered when reviewing the Russian De-offshorisation Law

In light of the new legislation which came into force in 1 January 2015, Russians with offshore considerations will need to analyse corporate structures to identify companies affected by the new CFC rules.
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June 19th 2015

Russian Deoffshorisation Law

On 24 November 2014 Russian President Putin signed the Federal Law No. 376-FZ, introducing a new law which came into force on 1 January 2015.  This is commonly referred to as the Russian de-offshorisation law and concerns controlled foreign companies (‘CFC’).  Russia is the last of the largest world economies to create an institute of controlled foreign companies in taxation law.  The definition of a CFC is a foreign company that is not tax resident in Russia, but is controlled by organisations or individuals that are Russian tax resident.  Penalties will be imposed on persons who do not notify tax authorities of their participation whether direct or indirect in a CFC. 
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June 11th 2015

Isle of Man a favorable choice for Digital Currencies

Digital currencies have been around since the 1990’s and it is now becoming apparent that these are not temporary as some people first predicted. Indeed, on the 26th February 2015 the Bank of England commented on their belief that digital currency will revolutionise payment systems for banks. In particular the bank cited the ledger technology that digital currencies relay on as having considerable promise and indicated that central banks should consider making use of such technology.
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June 11th 2015

Luxembourg’s non-EUR Functional Currency for Tax Purposes

Luxembourg companies are already free to choose the currency in which their accounts are prepared.  Therefore if you have a Luxembourg company and you expect to conduct either all or a majority of business in a currency other than EUR it is possible to take this option.  This can be beneficial for a number of reasons, one such reason being that foreign exchange losses and gains that have no reflection on the economic position of the company do not have to be recorded for accounting purposes.
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June 04th 2015

South Africa Refine Share Dealings

Arrangements whereas companies buy back their own shares immediately before issuing new shares has previously been used in South Africa causing the South African Revenue Service (SARS) concerns over payment of capital gains tax (CGT).

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May 28th 2015

Abu Dhabi Global Market

Draft legislation has been published for open market consultation with regards to Abu Dhabi Global Market (ADGM), the new international finance centre in the United Arab Emirates.  This legislation has already been subject to a pre-open market consultation in which the opinions of sixteen major international financial and industry bodies were sought.
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March 21st 2015

Foreign Direct Investment

24 July 2014
Foreign Direct Investment can be either inward or outward.  Inward is where the economy receives from non-resident investors and outward is where resident makes investments into external economies.
 
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March 21st 2015

Coalition Failed to Simplify Tax Issues for Contractors

Despite promising to simplify taxation in its pre-election campaigning, the coalition has led to more complication not less according to the Association of Chartered Certified Accountants (ACCA).
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March 21st 2015

Jersey Introduces First Regulated Bitcoin Investment Fund

Jersey has recently announced the setting up of the World’s first Bitcoin investment fund.  The fund, known as the Global Advisors Bitcoin Investment Fund (GABI), is a regulated open ended fund and is due to be launched on 1 August 2014 by a Jersey based investment management company.  This will not be open to the public.
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March 21st 2015

Tax Relief on Legitimate Expense Claims

The UK government has launched a consultation to reform the way employees get tax relief on allowable expenses.
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March 15th 2015

UK Stamp Duty Land Tax ‘Slab’ Rule to be Abolished

In the Autumn statement it was announced that the ‘slab’ rule under which SDLT is currently charged on residential properties at a single percentage of the whole price will be abolished and instead it will be charged on a marginal basis similar to income tax bands. This new SDLT rate is effective from 4 December 2014.
 
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March 15th 2015

Tax Benefits of Portugal

Portugal has implemented a major reform of its Corporate Income Tax Code. This includes a participation exemption method for dividends and capital gains, including a withholding tax exemption on outbound dividends providing certain conditions are met. This has been implemented as per OECD guidelines and European Commission recommendations in order to avoid double taxation.
 
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March 15th 2015

Overhaul of Panama’s Movable Assets Security Regime

Security interests in movable assets are similar to pledges with the added advantage whereby the debtor remains in possession of the asset which acts as collateral.  New regulations have been introduced in Panama in an effort to promote access to credit via an increase in movable asset securities.  These regulations are also intended to simplify the formalities required to create movable asset securities.
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March 15th 2015

Guernsey Becomes Member of Berne Convention

The World Intellectual Property Organisation (WIPO) has accepted Guernsey as a member of the Berne Convention.  This convention provides protection of literary and artistic works and is the most widely recognised copyright convention in the world covering 168 countries.  The convention will be extended to Guernsey from 21 November 2014.
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January 02nd 2015

Taxation of Vulnerable Beneficiaries of Trusts

Vulnerable Beneficiary Trust’s apply to persons who are either physically disabled, mentally disabled or a child whose parents are deceased.  These qualify for special income tax, capital gains tax and inheritance tax treatment and protect the beneficiaries so that their means tested benefits are not affected.
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December 15th 2014

Reactivation option for Panamanian Corporations

Panamanian companies that have undergone a formal dissolution now have the option of reactivation. This reactivation of a Corporation in Panama is possible at any time before its liquidation has been finalised, it is also possible if the liquidation has been finalised and it is discovered that the company has assets that were not liquidated.  Upon reactivation the company may continue with its legal and contractual relations that had not ended prior to the dissolution.

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November 26th 2014

Mortgage Market Review impact on Buying UK Property for Expats

As a result of a Mortgage Market Review in the UK a new set of regulations came into effect on the 26 April 2014. These regulations are likely to see the number of mortgages getting approved in the UK which has already fallen to reduce further still, there has already been a significant dip in May following the introduction of the new regulations in April.
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November 16th 2014

Gibraltar to Eliminate Duties on Art

At a pre-budget announcement during a dinner for Thomson Reuters representatives, Fabian Picardo the Gibraltar Chief Minister announced that the Government will be eliminating import and export duties on the sale of art in all forms from 1 July 2014.
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October 29th 2014

Bermuda International Business Companies

Bermuda has experienced a 21% increase in the number of new IBC’s being formed when compared to the same period in 2013.  This is also an increase of 31% on the numbers in 2012.
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October 21st 2014

Kenya / Mauritius Tax Treaty Enacted

Kenya has finally enacted a double taxation avoidance agreement that was first agreed upon with Mauritius in May 2012.  It is hoped that this will boost cross border investment by protecting investors from both direct and indirect double taxation.
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October 14th 2014

Possibly Tax Cut in Hong Kong Securities and Futures Contracts

Currently the levy payable on a securities transaction by the buyer or the seller is 0.003 percent and for a futures contract transaction it is HKD0.6, but Hong Kong plans to cut this levy by ten percent on any trading in securities and futures/options contracts.
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October 04th 2014

Guernsey Image Rights Register

Guernsey was the first jurisdiction to introduce an image register, the first of its kind in the world.  This legislation enables a person, a joint personality, a group, a legal entity or even a fictional character to have their personality registered.  Since its introduction in 2012 it has received over thirty applications.
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September 22nd 2014

Cross Border Taxation in Europe

The European Commission has launched two public consultations and have formed an expert group to look at the tax obstacles that impede cross border activity.
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September 07th 2014

Singapore to Become World’s biggest Private Banking Centre

Traditionally Switzerland has always ranked highest as the world’s private banking centre due to its stability, neutrality and confidentiality laws.  However, that may be about to change.  By the end of this decade it is expected that Singapore will overtake Switzerland as the number one global offshore wealth management capital of the world.  
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August 14th 2014

European Commission Proposes Changes to Schengen Visa

The Schengen visa allows visitors to travel among twenty six European countries on a single visa.  Studies have shown that most travellers are lost due to tiresome visa procedures resulting in a huge lose to the economy.  It is hoped that proposals to aid the process of acquiring visas will result in attracting more visitors and subsequently result in a huge boost to the economy.
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August 08th 2014

UK Capital Gains for Non-Residents

Even if you are not a UK resident you may still have to pay UK Capital Gains Tax.  In general you may not be liable for this, but there are some exceptions.  This capital gains tax however may be avoided where there is a double taxation agreement between the UK and your country of residence.
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July 18th 2014

Guernsey Limited Liability Partnerships

After much research into the laws of other jurisdictions Guernsey has approved draft legislation to introduce Limited Liability Partnerships.  This is expected to receive Royal assent prior to July 2014.  These corporate bodies combine features from traditional partnerships with features from limited liability companies.  They are more commonly used where joint management is contemplated.
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June 24th 2014

Hong Kong’s New Companies Ordinance and Trust Amendments

After a comprehensive rewrite that has been ongoing since 2006 the new companies ordinance came into effect on 3 March 2014.  This has been introduced to enhance corporate governance, facilitate business, ensure better regulation and modernise the law.  The aim of which is to fortify Hong Kong’s status as an international financial centre.
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June 10th 2014

UAE Company Types of offshore incorporations

The UAE is becoming a very popular place for offshore incorporation having completely recovered from the global financial crisis and with places like Dubai and Abu Dhabi making a name for themselves in the modern financial world.  The UAE prides itself on its prestigious offshore financial reputation
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May 29th 2014

India Introduces the Companies Bill 2013

The Companies Bill 2012 had been much anticipated as it was approved in the Lower House on 18 December 2012 and after many months was passed in the Upper House on 8 August 2013, has now received Presidential assent and has been notified by the government on the 30 August 2013 and is now hereby to be known as the Companies Bill 2013.  This bill will bring much improvement to the Indian Companies Act 1956, which it now replaces.  Notification for commencement was issued on September 12, although some remaining sections will be notified in a phased manner.
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January 02nd 2014

Tax Relief for Special Economic Zone in India

The Indian government has announced that it is to exempt from service tax a number of services received by units which are located in a Special Economic Zone (SEZ), this will include an exemption from all indirect taxes for authorised operations. Developers will also benefit from these tax reliefs providing that it is for permitted activities within the SEZ’s.
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December 10th 2013

Offshore implementation of the Alternative Investment Fund Managers Directive

There are changes occurring across the entire offshore environment due to the Alternative Investment Fund Managers Directive (AIFMD) which was to be implemented across Europe from 22 July 2013.  This is to ensure that any undertaking for collective investment raising monies from a number of investors with a view of investing them in accordance with a defined investment policy otherwise known as alternative investment funds (AIF’s) has a more uniform law throughout Europe to regulate these.
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November 30th 2013

Mauritius Tax Exempt Fund

The Financial Services Commission has introduced a new Special Purpose Fund (SPF). This allows for the setting up of tax neutral funds. This SPF will enjoy ‘tax exempt’ status in Mauritius providing it meets the following conditions;
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November 17th 2013

Guernsey’s Dual Regime Interests US fund managers

Guernsey intends to operate a dual regime for distribution of funds.  This will apply to both EU and non-EU countries.  A funds delegation from Guernsey recently went to the US to update US contacts with details of the Island’s dual regime ahead of the EU and was reported to have been well attended and positively met.

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August 12th 2013

Domicile election for non-UK domiciled souses and civil partners in the UK

Persons who are non-domiciled in the UK, but have a UK domiciled spouse or civil partner can now opt to be domiciled in the UK.

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July 24th 2013

Cyprus Additional Investment Incentives

Cyprus has numerous benefits for offshore investment, which already make it a very attractive jurisdiction. The government has introduced further packages aimed at foreign investors.
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July 18th 2013

UK Group Relief for companies

The UK has amended its rules on Group Relief for companies resident in the European Economic Areas following a ruling by the Court of Justice of the European Union in September 2012 which said that the UK’s group relief rules were in breach of the EU’s freedom of Establishment Provisions.
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May 31st 2013

Changes to Danish Company Law

The Danish parliament has passed a bill with a number of changes to Danish company law. It has done this in the hope that this will simplify administrative procedures for companies and make it easier to do business in Denmark.
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May 21st 2013

The BVI aims to Modernise its Trust Regime

The British Virgin Islands has aims to modernise its Trust Regime, which is based on principles drawn from English trust law, but has been updated and advanced since its initial introduction several times. They have already had their second and third readings in the House of Assembly and it is expected that the Bills will come into force shortly.
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May 14th 2013

India’s Foreign Direct Investment Policy

Foreign Direct Investment is usually into production or business in a country by another country. This is not the purchase of shares, but rather buying a company or expanding existing operations.
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May 05th 2013

Singapore to Sign Free Trade Agreement with the EU

Singapore is famed for its wealth with the highest percentage of millionaire households in the world. Singapore is also one of the major centres for offshore wealth due to its business environment and concentration of banks. It is also the largest trading partner for Europe in Southeast Asia. EU-Singapore trade in goods and services grew by around 40% between 2009 and 2011.
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April 22nd 2013

BVI Ties with the Middle East

The BVI is an exceedingly recognised jurisdiction in the offshore sector, which are using their many advantages to promote business in the Middle East. The UAE is a divided economy between the onshore sector which is dominated by local business due to its restrictions on foreign ownership and the offshore sector.
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April 14th 2013

Hong Kong improves on its attractiveness for offshore incorporation

Hong Kong has a lot to offer as a choice for offshore company formation, it has a strong, open business environment which attracts top global companies. It is an ideal location for firms who wish to do business in the Asian economies, it has high class infrastructure, well developed capital markets, a highly educated work force and an attractive tax regime.
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April 04th 2013

UK Domicile and Pension Schemes

UK expatriates may still be considered as UK domiciled and therefore will still be liable for the 40% inheritance tax on their worldwide estate after allowances. This is due to the concept of ‘deemed domicile’ which applies for inheritance tax purposes and means that even if you are not domiciled in the UK you might still be deemed domiciled if you were domiciled in the UK within the three years immediately before the transfer, or if you were resident in the UK in at least 17 of the 20 income ta
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April 03rd 2013

Update Regarding re-capitalization of Cyprus Banks

The Cyprus Courts have issued an interim court order preventing deductions on deposits at Bank of Cyprus without fair compensation. This decision follows on from announcements last week in which Laiki Bank would be split into two banks, a ‘bad’ bank and a ‘good’ bank, with the ‘good’ bank being rolled into Bank of Cyprus. The ‘bad’ bank will consist of all deposits over €100,000 as well as any non performing loans. This ‘
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March 19th 2013

Cyprus Bailout and levy

Cyprus Banking bailout is a very hot topic in the news and the position is fluid and is changing by the hour.  The levy on depositors as a contribution to the bailout is that first time depositors are expected to contribute under the EU bailout terms.  At Chesterfield we are keeping our clients informed as the position changes and our technical team are studying each proposal so as options for our clients are prepared to take advantage swiftly as soon as the final regulations come into force.
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March 13th 2013

Why Cyprus is a Good Decision for Russia?

Further to our article dated 5th December 2012 in which we reported that due to the signing of a protocol between Cyprus and Russia which is aligned with the OECD policy standards on fiscal transparency and exchange of information on taxation matters Cyprus is now removed from Russia’s ‘black list’ of unsupported tax jurisdictions, we have decided to take a look at what makes Cyprus so appealing for Russian investment.
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March 05th 2013

German Church Tax story has gone viral

This story has caught the imagination of many in the United Kingdom and the US , where Churches are funded through voluntary contributions. Germany income Tax system is amongst the most complex in Europe included in income Tax is the Kirchensteuer surcharge , which has been part of the German Tax system since the formation of Germany in the 19th century.

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February 25th 2013

Explaining the Offshore Companies

Offshore companies and bank accounts are now an undeniable fact of our financial times, however these are still largely misunderstood entities. Certainly when conversation arises about such entities it is common to hear comments regarding tax evasion.  Whilst it is certainly undeniable that these entities in most cases do benefit with regards to tax relief there are so many other advantages and reasons as to why it may be better for your business to have an offshore rather t

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February 17th 2013

Introduction to Foundation Administration

Foundations are most likely to be used for ‘holding’ purposes and are generally favored for confidentiality and asset protection.  Some Foundations act like a trust but operate like a company.  Whereby assets are only settled into a trust by the Settlor a Foundation can purchase assets and enter into agreements.
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February 11th 2013

Choosing the best location for your offshore company

When it comes to choosing a location for your offshore company there is certainly a lot of choice, but how do you know that the one you are choosing is the best for you?

In order to help you with your decision we at Chesterfield have selected some of our most popular jurisdictions and prepared a short background on each focusing on the advantages and disadvantages of each in order to help you make an informed decision without being overlo

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February 08th 2013

Cut in Corporation Tax in the UK

The Chancellor of the Exchequer in the UK, George Osborne has delivered an Autumn statement announcing a further 1% cut in corporation tax in 2014 which will bring the rate down to just 21%.    When compared to recent levy’s in the US – 40%, France – 33% and Germany 29%, this will make the UK the lowest rate of any major western economy.
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January 23rd 2013

Employee Shares Office of Tax Simplification

On the 16 January 2013 the Office of Tax Simplification, which is an independent office established in July 2010 to provide advice to the Chancellor to improve and simplify the UK tax system, has produced a final report on the taxation for unapproved employee shares.
In this report they condemned the current regime stating that it was very obstructive to employees preventing them from obtaining share ownership. They have stated that this is in direct opposition to current government polic
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January 19th 2013

Cyprus to be Removed from Russia’s Black List

In 2008 Cyprus was added to Russia’s blacklist consisting of 54 countries for reportedly failing to share tax information.
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January 15th 2013

Why should you consider an Offshore company formation in the Isle of Man

The Isle of Man has long had a reputation as a hub for corporate finances particularly offshore which makes it a much sought after jurisdiction when considering setting up an offshore company. However, this is an important decision to make and should not be made lightly therefore it is best to review the pros and cons with the jurisdiction before making a decision.

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December 19th 2012

What Global Crisis actually mean?

‘Global Crisis’ is a term that is thrown around a lot lately, but what does this actually mean and how does this affect the individual and the offshore environment?

In short Debt is considered to be substantially  to blame for the current crisis.  Large scale external debt, like the debt between countries where underdeveloped countries have borrowed money from other richer governments, that they can’t repay, and small scale internal d

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December 05th 2012

Information about Cyprus

Cyprus has fast become one of the more popular places for offshore formation.

Cyprus was occupied by the United Kingdom from 1878 until they relinquished it back in 1960, however this has left its mark on the Island, in particular that it follows British Common law especially when it comes to corporate law.  The majority of the Island is English speaking making it a more friendly option for English speaking business to be transacted

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November 25th 2012

List of available corporate services for your Company

Most people know that if you were to come to a provider such as Chesterfield and ask for a company you would get a company in an offshore location.  However, this is but the tip of the iceberg when it comes to the services provided by Chesterfield.
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November 07th 2012

Asset Protection

Asset protection is one of the main reasons why people choose to incorporate offshore companies. This has become particularly highlighted in recent years where in the aftermath of the global recession many business owners have lost assets and equity in businesses that have taken years to establish.
This loss may have been mitigated with correct asset protection. Increasingly, the financial environment makes our hard worked for assets vulnerable to new legislation and lawsuits.
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