Resources

British Virgin Islands: Economic Substance Requirements

The British Virgin Islands (“BVI”) has enacted a new legislation through which it requires the establishment of relevant and adequate ‘economic substance’ for BVI companies and limited partnerships that are ‘resident’ in the BVI and carry on ‘relevant activity’.

Cyprus International Trusts

The term “international trusts” refers to the trusts which are set up under the provisions of the International Trusts Law of 1992 to 2013.

An analysis of the Amendment to the CIT Law 2012

The changes take into account the realities of the Cyprus economy today and are in compliance with EU law and directives. The CIT law is now considered one of the best, if not the best, in Europe.

International Trusts

The various types of trust vary in complexity but they have one common fundamental feature. A “person” being either an individual or a company (“the trustee”) agrees to hold certain assets (“the trust fund”) in its name for the benefit of another person (“the beneficiary”) on certain terms and with certain powers (which are usually set out in the Trust Deed).

Securing confidentiality in international structures via Cyprus

Confidentiality and preservation of the anonymity of beneficial owners (individuals or companies) is, in most cases, vital in the course of international structuring. Such confidentiality may be needed for a number of reasons, whether commercial, family or otherwise, given the personal circumstances of each shareholder.

Succession Law and Probate in Cyprus

The regulation of the devolution of a person’s estate on his death, whether by will or on intestacy, and the execution of wills and administration of estates are dealt with under Cyprus Law by the Wills and Succession Law, Cap. 195 and the Administration of Estates Law, Cap. 189 respectively. The section of Cap. 195 dealing with wills is drawn largely from the English Wills Act of 1837 whereas the section dealing with intestacy is based on the Italian Civil Code.

Taxation of Cyprus International Trusts

This information sheet explains how Cyprus International Trusts are taxed in Cyprus and how to ensure the obtaining of Cyprus Double Tax Treaty and applicable EU Directive benefits in cases that this Trust receives foreign income that is subject to foreign withholding taxes (e.g. dividend, interest or royalties).

Trusts

The trust is an English concept and has been in existence for many centuries.

The early objects of trust were intended to regulate the succession of family wealth. This was achieved by the holding of assets by trusted and secured friends or other parties to protect the assets against spendthrift children or confiscation by third parties.

They were used extensively at the time of Crusades by departing knights who placed the management of their English estates in the hands of trusted friends whilst they were away fighting in other parts of the world.

DAC6 – Mandatory disclosure of reportable cross-border arrangements

On 25 May 2018, the EU Council issued Directive 2018/822/EU, which amends Directive 2011/16/EU on mandatory automatic exchange of information, in relation to reportable cross-border arrangements. Commonly known as DAC6, its purpose is to facilitate the obtaining and the automatic exchange of comprehensive and relevant information between the tax authorities of Member States about potentially aggressive tax arrangements.