5. Taxation

A. Introduction And Developments

As stated above, there are no taxes in the nature of income, capital gains or inheritance tax payable in the Islands.

B. International Tax Treaties

The Islands maintain 23 bilateral tax information agreements with the following countries: Aruba, Australia, Canada, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Iceland, India, Republic of Ireland, Japan, Mexico, Netherlands, Netherlands Antilles, New Zealand, Norway, Portugal, South Africa, Sweden, United Kingdom and United States.

In addition, the Islands have bilateral tax treaties with the 27 EU member states, under which it reports savings income information, pursuant to measures equivalent to the European Union Savings Directive.

The Islands’ competent authority for tax cooperation arrangements is the Tax Information Authority, established in 2005 under what is now the Tax Information Authority Law (2009 Revision), introduced to provide for effective international cooperation in tax matters.

In September 2009, the Islands were elected as a member of the Organisation for Economic Co-operation and Development’s (OECD’s) Steering Group at a Global Forum on Transparency and Exchange of Information. Along with 13 other jurisdictions, the Islands are assisting in restructuring of policy for the Global Forum, the final decision-making body for OECD matters.

C. Other Taxes

Under the Stamp Duty Law (2010 Revision), stamp duty is payable on certain documents executed in, brought to, or produced before a court of the Islands. Such duty is generally nominal except in cases of a transfer of a debenture, or legal or equitable mortgage, or charge over immovable property, or a legal or equitable mortgage or charge over movable property, a promissory note, a letter of credit, a note evidencing indebtedness, or similar instrument.


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