Overseas Jurisdictions

At Fides Corporate Services we may assist you with the setting up of structures in various jurisdictions:

Anguilla

Unlike many financial services centres, Anguilla is truly a neutral tax jurisdiction. There are no income, capital gains, estate, profit or other forms of direct taxation on either individuals or corporations, whether resident in Anguilla or not. This makes Anguilla a very attractive location for financial services professionals to base themselves. The Government recognises the desirability of expanding Anguilla‘s professional infrastructure and has very recently established a new programme allowing for multi-year work permits of up to four years duration and relaxed residency rules.

Belize

Under the International Business Company Act of 1990, Belize International Business Companies (IBC‘s) are exempt from most types of taxation. Exemptions include:

• all income of an IBC;
• all dividends paid by an IBC to persons resident in Belize or elsewhere;
• all interests, rent, royalties, compensations and other amounts paid by an IBC to persons who are not residents in Belize;
• capital gains realized on any shares, debt obligations or other securities of an IBC by persons who are not residents in Belize.

IBC‘s are exempt from the payment of stamp duty on:

• all instruments relating to transfer of any property to or by an IBC;
• all instruments relating to transactions in respect of the shares, debt obligations or other securities of an IBC;
• all instruments relating in any way to the assets or activities of an IBC.

British Virgin Islands (BVI)

The British Virgin Islands are an English-speaking Dependent Territory of the United Kingdom, located in the Caribbean off Puerto Rico. The BVI is politically stable; under the 1967 constitution, the Governor represents the Queen and heads an Executive Council. There is a 13-member elected Legislative Council.

BVI has been an international business centre since the 1980s with constant updates to its legislation to ensure it remains in the fore front of the international business industry.

As from 1st July, 2005, the BVI, like other British ‘dependent territories‘, was forced to apply the EU‘s Savings Tax Directive, and chose to apply a withholding tax (initially of 15%, rising to 20% on July 1, 2008) to the returns on savings paid to nationals of EU Member States. The Directive does not apply to corporate entities.

Cyprus

Cyprus imposes corporation tax on ‘companies‘: this term includes all companies incorporated or registered under any Cyprus law, and any foreign company which carries on business or has an office or place of business (permanent establishment) in Cyprus.

In July, 2002, as part of the Income Tax Act No. 118(I) of 2002, Parliament approved a uniform 10% corporate tax rate, to apply to both onshore and offshore companies. According to the new tax regime which applies in Cyprus since the 1st of January 2003, a company is a resident for tax purposes in Cyprus if the management and control of the company is carried out in or from Cyprus. Management and control is taken to mean the ‘effective management‘ of the company (e.g. that all important decisions regarding the Company are taken in Cyprus, all Board meetings take place in Cyprus – which would easily be facilitated if the majority of the Board of Directors are Cyprus residents).

Seychelles

Seychelles International Business Companies are useful alternatives to offshore companies established in jurisdictions such as the British Virgin Islands. A Seychelles International Business Company pays a registration fee of $100. The continuing annual renewal fee for IBC status is the same amount. There is a scale of fees in the International Business Companies Act covering inspection of documents in the Registry, copies of entries, increase of capital etc. etc. The fee levels are fixed for the life of an IBC, whatever subsequent changes may take place to fee levels.

IBCs are exempt from the Business Tax, from withholding taxes and from Stamp Duty; however they must pay tax on the non-monetary benefits of employees unless the IBC is in the International Trade Zone or the employees are crew members of a ship in international waters.