Tag Archives: Territorial Tax

The Tuvalu International Business Corporation – Very competitive

Indian and Pacific Ocean Tax & Money Havens, ,

The Tuvalu International Business Corporation to facilitate the conduct of businesses by the international business and shipping community.

Situated in the Pacific ocean near the intersection between the equator and the international date line, Tuvalu has emerged as a modern and cost effective offshore jurisdiction to register an international business company, particularly for the shipping industry.

Formerly known as the Ellice Islands, Tuvalu consists of nine islands scattered over a million square kilometers in the Western Pacific Ocean. Tuvalu separated from the joint administration of the Gilbert & Ellice Islands and became an independent state on October 1, 1978 after more than eighty years of British colonial rule. It enjoys political stability, low taxes and a familiar legal system for international business based on common law principles.

Senior Lowtax Business Editor Jeremy Hetherington-Gore welcomed the advent of the Tuvalu International Offshore Financial Centre (OIFC): “You could say that Europe and the Americas are well-served by OIFCs, with nearly forty operating in the Atlantic basin; but there are many fewer in the Asis-Pacific zone, and this is all the more remarkable when you consider that it is going to be the dominant economic region of the world in the next twenty years. So I am very happy to see that Tuvalu is making strides both in terms of its Companies Registry and in terms of its Shipping Registry.

Tuvalu International Business Companies are governed by the Tuvalu International Companies Act which is regarded as a modern piece of corporate legislation tailored specifically to the needs of international shipping related businesses. Incorporation is quick and straight forward, and a company can be formed within one business day

Under the International Companies Act, a company incorporated as a Tuvalu IBC is required to have only one shareholder and only one director. Every company incorporated as a Tuvalu IBC is required to keep a Register of Directors and one or more Share Registers. However, the copies of the Register of Directors and Share Register kept by the registered agent and the Registrar are kept confidential, and do not form part of the public record of the Registry. IBCs are not subject to any tax liability in Tuvalu and need not file any financial statements. There is no minimum issued share capital requirement and offshore companies are exempt from stamp duty on all transactions. Shelf companies are also available. Like most offshore jurisdictions, certain restrictions are placed on Tuvalu IBCs; for example, they cannot carry on business with persons resident in Tuvalu or own real property located in the jurisdiction. Separate licences must be applied for if a company wishes to carry on banking, trust, insurance or reinsurance business. Incorporation costs are relatively low; a new incorporation costs approx. USD 1.500 inclusive of the full ‘corporate kit.’ An annual renewal tax fee of USD 425 is payable yearly.

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What is a trust – Set up a trust in Uruguay

Central and South American Tax & Money Havens, , , ,
What is a Trust?

It is a legal transaction that involves the transfer of property or rights of the estate of a person or entity to form an autonomous patrimony entrusted to an administrator to manage it or to exercise the rights in compliance with certain instructions in favor of one or more beneficiaries.In compliance with the prescribed term or condition, such property or rights are restored to whom the property or rights conveyed or transferred to a third party.

How are called the different parties involved in the establishment of a trust?
The person who conveys the property or rights of the business object to the instructions on how to proceed with it, is called the trustor or settlor.The person who receives such property or right (trust assets) in order to comply with the provisions of the deed or deed of trust, this is called TRUST. The trustee or beneficiary is the person who receives the benefits of the property or rights managed by the Trust. The Trustor (the person who conveys the property or rights) may also be the beneficiary.The property business objects out of the assets of the Trustor (who conveys the goods) and constitute the trust property passing to form an independent involvement heritage assets of the Trust and excluded from the guarantee of the creditors of this. Both the Trustor and the Beneficiary may exercise their rights to ensure compliance with the trust according to script it gives rise.

 

Use of an Uruguay based Trust ?
Applications for this new instrument are different: one of the most anticipated in Uruguay is as facilitator of the credit instrument. Those who need to obtain a loan can establish a trust which by its nature separates certain assets of the estate of the person to constitute a separate estate, free of any affectation. The trust is a more efficient means of assurance in the field of business, giving greater legal certainty for investors. Compared to the real rights of mortgage or pledge, (traditional security instruments used in Uruguay) in the Trust property has been transferred to the Trustee who will administer the Trust in accordance with the instructions provided by the Trustor. Upon fulfilling the condition or term of affection that heritage will be returned to Trustor or Beneficiary shall be transmitted in compliance with the agreement without court action.Contact us if you want to set up a trust in Uruguay, or need advise regarding the use of trusts.
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Start-up incentives introduced in Singapore

Far East Tax & Money Havens, , , , , ,

During his keynote address to Singapore’s Fourth Start-up Enterprise Conference, the Permanent Secretary for Finance, Peter Ong, illustrated how the competitive tax regime in Singapore encourages the growth of new start-up companies.

“Singapore offers a very competitive tax regime designed to encourage new start-up companies,” he said. “Under the full tax exemption scheme, a newly incorporated company that meets the qualifying conditions effectively pays only 5.6% on the first SGD 300,000 (USD 213,000) of the income they earn in their first three years.” “After this period,” he continued, “start-ups can continue to pay less than 9% tax on the same amount, thereby allowing new entrepreneurs to retain a larger portion of their earnings to be ploughed back to grow their businesses.”

He pointed out that, this year, the government has also unveiled an unprecedented tax benefit in the form of the Productivity and Innovation Credit, to encourage start-ups and small- and medium-sized enterprises (SMEs) to invest in productivity and innovation. As an illustration, for the first SGD 300,000 that a start-up invests in staff training, it can deduct SGD 750,000 from its taxable income.

The same start-up will enjoy another SGD 750,000 deduction should it invest in automation. “The Productivity and Innovation Credit also allows businesses to convert the enhanced tax deduction into a cash payout,” he added, “a move that would come in handy in helping start-ups and SMEs ease their cash flow.”

Ong then illustrated the programme which supplies young start-ups with grants of up to SGD 50,000 to start their innovative business, while the Start-Up Enterprise Scheme provides a co-financing option of up to SGD 1m in funding start-ups with innovative and viable content.

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