CORPORATE & FIDUCIARY

Wealthy Chinese are rushing to shelter assets and income in overseas trusts before new tax rules go into effect next month, including provisions that target offshore holdings. The Bank of Singapore has seen a 35 percent surge in Chinese clients interested in offshore trusts since the second half of 2018, according to Woon Shiu Lee, head of wealth planning at the bank. The rate of inquiries leading to the establishment of a trust, which offers “tax-planning opportunities” by giving ownership to third-party trustees, has doubled since August, he said.  The reforms, which take effect Jan. 1, are meant to reduce the tax burden on...

CORPORATE & FIDUCIARY NEWS 2019

The Cayman Islands enacted The International Tax Co-Operation (Economic Substance) Law on 1 January 2019 (the “Law”). The Law requires entities engaged in certain relevant activities to have demonstrable “economic substance” within the Cayman Islands, in accordance with the standards established by the OECD and the EU to combat base erosion and profit shifting (BEPS). WHO DOES THE LAW APPLY TO? Currently, the Law applies to Cayman entities that are defined as “relevant entities” conducting “relevant activities”. Relevant entities will include most Cayman Islands exempted companies, limited partnerships and Cayman LLCs except investment funds or entities through which investment funds...

CORPORATE & FIDUCIARY NEWS 2019

The more money you make, the more taxes you pay — right? Not necessarily. While the U.S. tax code is structured so that high earners pay a higher tax rate, the ultra-wealthy often take advantage of laws that enable them to lower their effective tax rate. "In general, America's wealthy are different when it comes to tax planning because of the options they may have with categorizing the assets they hold," said Ron Carson, founder and CEO of Carson Group and co-author of "Avalanche: The 9 Principles for Uncovering True Wealth." "Their net worth often presents opportunities when tax planning...

CORPORATE & FIDUCIARY NEWS 2019

A. Introduction The House of Representatives is currently reviewing draft legislation which will introduce parts of the EU Anti-Tax Avoidance Directive (ATAD) into local law. The upcoming changes relate to the introduction of: interest deductibility limitations; Controlled Foreign Company (CFC) rules; and General Anti-Abuse Rules (GAAR). We aim to cover the rules relating to CFC and GAAR in our next newsletter. In addition to the above, it is expected that the final outstanding sections from the ATAD (i.e. exit taxation and intra-EU hybrid mismatches) will be transposed into local law later in the year and come into force from 2020...

CORPORATE & FIDUCIARY NEWS 2019

As the most important financial center and free port in Asia, Hong Kong attracts investors from all over the world and accordingly creates a currency transaction environment for the free exchange of currencies among different countries. Due to such reasons, many customers with demand for foreign exchange settlement go to Hong Kong to incorporate companies and open bank accounts. Meanwhile, well-developed financial industry and insurance industry in Hong Kong also attract a great number of customers from mainland China to purchase insurance in Hong Kong. Without a Hong Kong bank account, no insurance can be purchased in Hong Kong. However, just like bank accounts in...

CORPORATE & FIDUCIARY NEWS 2019

The number of small and medium-sized foreign trade enterprises increases sharply. For foreign trade enterprises, the best way to receive cross-border payment is to set up offshore account. Offshore account can only be opened in the name of offshore company. Hong Kong is the most effective springboard to enter international market. Besides, since Hong Kong is not controlled by the Foreign Exchange Bureau, foreign currencies can move into and out of Hong Kong freely. A number of small and medium-sized foreign trade enterprises choose to incorporate an offshore company and to an open offshore account in Hong Kong. Recently, a...

CORPORATE & FIDUCIARY OVERVIEW - EXECUTIVE SUMMARY 2019