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... tive solution for Mexican clients</p>]]></description>
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  <li>Once funds are invested in the FIP, each investor will be receiving qu ...

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<guid>http://www.amicorp.com/AmiNews/2018/01/Increase_in_regulatory_reporting_needs_globally</guid>
<title>Increase in regulatory reporting needs from existing and new clients globally</title>
<link>http://www.amicorp.com/AmiNews/2018/01/Increase_in_regulatory_reporting_needs_globally</link>
<pubDate>16 Jan 2018 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[The ever-evolving regulatory landscape is forcing corporations, asset and fund managers, family offices and financial institutions to solve multiple regulations and compliance rules simultaneously. Each of these regulations dictates a different set of data, documentation and regulatory classification requirements, putting increased pressure on already stretched compliance, data management, and onboarding teams.
<img src="http://www.amicorp.com/AmiNews/2018/01/increase_in_regulatory_reporting_needs_globally.jpg"
height="120" width="500" /> ]]></description>
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<![CDATA[ <div>
<h2>Increase in regulatory reporting needs from existing and new clients globally</h2>
The ever-evolving regulatory landscape is forcing corporations, asset and fund managers, family offices and financial institutions to solve multiple regulations and compliance rules simultaneously. Each of these regulations dictates a different set of data, documentation and regulatory classification requirements, putting increased pressure on already stretched compliance, data management, and onboarding teams.
Over the last nine months, Amicorp Group has seen a steep increase in demand from corporations, asset management firms and institutions to assist them with the new regulatory reporting requirements related to BEPS, the Common Reporting Standard (CRS), Legal Entity Identifier (LEI) introduced by MIFIF II legislation and other transparency initiatives. With our global representation and our 25-year track record in dealing with corporations and financial professionals, we can say that we understand the impact of global regulations and can, therefore, be of benefit to your business.
Amicorp Assurance Solutions delivers sophisticated and superior features, functionality and processes that help corporations, asset, and fund managers, family offices, private banks and wealth management firms in addressing these reporting challenges and in staying abreast with the changing regulatory requirements and expectations and industry practices.
We ensure global and future-proofed AEOI regulatory reporting
Our regulatory reporting service determines, classifies, reports and secures the regulatory journey of legal entities, ensuring compliance with all in-scope regulatory obligations such as CRS and LEI services:
<ul>
<li>CRS entity classification</li>
</ul>
Ensuring your entity is classified as Financial Institution-Investment Entity (FI-Investment Entity) or Non-Financial Entity (NFE), either Passive NFE or Active NFE. Classification reports are accessible through our online portal giving full insight into all classification and ongoing actions. And classifications will be aligned with the respective banks / FI’s where financial accounts are held. 

<ul>
<li>CRS on-boarding and due diligence of new entity accounts and new individual accounts</li>
</ul>
We help on-boarding entities with their due diligence for CRS purposes. This includes collection and preparation of self-certification forms, review and validation of each accountholder’s information on its CRS status and tax residence. We determine whether information inconsistencies with Financial Institutions exist and work on resolving them.
<ul>
<li>CRS pre-existing account due diligence and enhanced file review</li>
</ul>
We will review the information of account holders to identify any CRS indicia on tax residencies. We also review your existing structure or your entire client portfolio, to assess the local disclosure compliance and determine if restructuring measures are necessary and favorable to your needs.
<ul>
<li>CRS Reporting and other regulatory reporting</li>
</ul>
We can prepare and file the annual CRS reporting of reportable accounts to the AEOI portal of the local tax authorities. We can assist by providing compliance, regulatory and risk management services. We can also provide corporate governance services such as corporate secretarial, a statutory managing director or trustee service – keeping you compliant with regulatory and local filing requirements.
We achieve centralized and optimized client data management
Our reporting services identify all the data and documentation that is required for processing to evidence the regulatory reporting process.
Our system integrates seamlessly with data and KYC utilities
Our Amiportal integrates with leading data providers and KYC utilities to consume process and route client data to the right internal systems, updating client data records accordingly. This helps to create a single client view of all relationships, associations, directorships and ultimate beneficial owners related to the HNW client, helping to accurately calculate the size of the risk of doing business with that individual.
We already have provided BEPS health checks, CRS and LEI registration services for numerous of legal entities and we make sure we keep informing our clients and contacts of the latest developments.
Legal Entity Identifier “LEI” Update
Six-months transition to obtain the LEI
January 3, 2018 has seen the implementation MiFID II but the European Securities and Markets Authority (ESMA) has approved for an extra transition and fewer rigorous deadline and will permit for a six-month transition interval.
In the last weeks, ESMA received a number of indications that not all investment firms will succeed in obtaining LEI codes from all their clients that are legal persons ahead of 3 January 2018. At the same time, these firms might be approached by such clients after 3 January 2018 with the request to provide a service triggering the obligation to submit a transaction report. Similarly, ESMA is aware of the concerns raised by some trading venues that additional time might be required to reach out to non-EU issuers whose financial instruments are traded on European trading venues in order to inform them about the applicable MiFIR requirements and obtain their LEI codes.
As to support the smooth introduction of the LEI requirements, ESMA will allow for a temporary period of six months that: (1) investment firms may provide a service triggering the obligation to submit a transaction report to the client, from which it did not previously obtain an LEI code, under the condition that before providing such service the investment firm obtains the necessary documentation from this client to apply for an LEI code on his behalf; and (2) trading venues report their own LEI codes instead of LEI codes of the non-EU issuers while reaching out to the non-EU issuers.
Amicorp being at the forefront of these developments already took coordinated action to contact and register those client entities that are in scope for obtaining a LEI number.
<hr>
<div>
For further information about our regulatory reporting services, please contact: 

<h3>Amicorp Group – Assurance Solutions</h3>
<a href="mailto:assurancesolutions@amicorp.com">assurancesolutions@amicorp.com</a> 
</div>
</div> ]]>
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<guid>http://www.amicorp.com/AmiNews/2017/december/aminews_cyprus_fund_services</guid>
<title>Cyprus becomes Amicorp’s 12th Fund Services jurisdiction</title>
<link>http://www.amicorp.com/AmiNews/2017/december/aminews_cyprus_fund_services</link>
<pubDate>05 Dec 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2017/december/aminews_cyprus_fund_services.jpg" alt="aminews_cyprus_fund_services">
Amicorp’s Office in Nicosia, Cyprus now fields a dedicated fund services team, further enhancing our offering both globally and within the EU. The launch comes on the back of Cyprus’ emergence as a credible fund domicile as evidenced by the tripling in assets under management since 2013, and the admission in 2016 of the local industry association, CIFA, as a full member of EFAMA, the corresponding pan-European body.]]></description>
<content:encoded>
<![CDATA[ <h2>Cyprus becomes Amicorp’s 12th Fund Services jurisdiction</h2>
Amicorp’s Office in Nicosia, Cyprus now fields a dedicated fund services team, further enhancing our offering both globally and within the EU. The launch comes on the back of Cyprus’ emergence as a credible fund domicile as evidenced by the tripling in assets under management since 2013, and the admission in 2016 of the local industry association, CIFA, as a full member of EFAMA, the corresponding pan-European body. 
Adoption of UCITS IV in 2012 and the AIFMD in 2013 provided the necessary foundation for this growth, through a fully EU compliant legal and regulatory framework supervised by a single regulator, CySEC, whose goal is a business-friendly approach coupled with close adherence to pronouncements of the European regulator, ESMA. Besides its favorable geographic location and tax environment, Cyprus offers a lower cost proposition without compromising on professional service standards. The former makes possible establishment of funds with relatively low assets under management, while the latter limits execution risk.
Available types of Investment Funds
As with other EU jurisdictions, both UCITS vehicles for traditional investment assets and AIFs for alternative assets are available. Under current Cyprus law, AIFs come in two variants: AIFs for a limited number of persons (AIFLNP) and “standard” AIFs. AIFLNPs have proved popular for high-net-worth individuals (HNWIs) and smaller institutional managers. Running costs can be quite low especially where there are fewer than five investors or fund assets are below EUR 5 million which does away with the need to appoint a depositary. While they can invest freely with virtually no restrictions, AIFLNPs come with a minimum participation amount of EUR 125,000 and can accommodate a maximum of 75 investors and EUR 100 million in assets (rising to EUR 500 million if unlevered coupled with a five-year lock-up period). The principal differences of standard AIFs are the absence of limits on minimum participation amount, the number of investors, or value of assets. They can also be offered to professional investors across the EU through passporting i.e. a simplified regulator-to-regulator notification mechanism instead of having to obtain time-consuming country-by-country approvals.
Use of Fund Structures
All professional asset managers have long recognized the advantages of regulated fund structures. Their perceived higher levels of investor protection often translate into higher assets under management. This is especially true in the EU, given the success of the UCITS product, a feat that AIFMD set out to emulate. Structuring options for AIFs are virtually limitless with three different legal forms being available, coupled with open/closed-ended terms, master/feeder, and umbrella structures. The latter is especially suited to smaller managers seeking a host platform within which they can manage their own separate sub-fund (compartment).
AIF structures are also increasingly being used by HNWIs and family offices who value their flexibility, transparency, and protection. All family assets irrespective of type can be grouped in a single structure while still being under separate investment mandates, beneficiaries, or liquidation terms. Such a setup is often easier to understand and manage than for example trusts and foundations. Worth noting also is that AIFs investing in Cyprus assets are eligible under the Republic’s citizenship-by-investment program. As with professional funds, great structuring flexibility exists including a choice between self-managed and externally managed AIFs. Below is just one example out of many possibilities. In this case, the AIFLNP fund serves as a vehicle for pooling of family assets while maintaining control through self-management of the fund.
<img src="http://www.amicorp.com/AmiNews/2017/december/aminews_cyprus_fund_services_graph.jpg" alt="aminews_cyprus_fund_services">
How Amicorp can help
Amicorp Fund Services is licensed and recognized as a fund administrator in 12 countries and has been actively administering assets for both traditional and alternative funds for over 20 years. Aided by one of the most sophisticated software packages in the market, PFS Paxus, which integrates the accounting and investor registry functions, we can cut data processing time significantly without compromising on accuracy. The latter is further bolstered by our ISAE 3402 Type II certification. At the same time, the combination of centralized global processing, coupled with local teams on the ground at each jurisdiction we service, provides the best of both worlds: cost-effectiveness without loss of personal touch. Amicorp (Cyprus) Ltd, a fully integrated Amicorp office for over ten years, is ideally placed to address Cyprus AIFs’ operational needs both now and shortly following the introduction of the law regulating fund administration. The service offering is comprehensive, covering:
<ul>
<li>Implementation of agreed structure, i.e., legal establishment, regulatory licensing, and selection of service providers;</li>
<li>Fund administration, accounting, registry, and transfer agency services;</li>
<li>Corporate services (registered office, statutory returns, etc.); and</li>
<li>Outsourcing of control functions (compliance, risk, internal audit).</li>
</ul>
<hr>
<div>
For further information, please contact:
<div>
<h3>Elia Nicolaou</h3>
Managing Director 
Tel: +357 22 504 000 
<a href="mailto:e.nicolaou@amicorp.com">e.nicolaou@amicorp.com</a>
</div>
<div>
<h3>Alexandros Gavrielides</h3>
Director – Business Development 
Tel: +357 22 504 000 
<a href="mailto:a.gavrielides@amicorp.com">a.gavrielides@amicorp.com</a>
</div>
</div>]]>
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</item>
<item>
<guid>http://www.amicorp.com/AmiNews/2017/november/amicorp_group_assurance_solutions</guid>
<title>Amicorp Group: Assurance Solutions</title>
<link>http://www.amicorp.com/AmiNews/2017/november/amicorp_group_assurance_solutions</link>
<pubDate>20 Nov 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2017/january/amicorp_group_assurance_solutions.jpg" alt="amicorp_group_assurance_solutions">
One of Amicorp’s core businesses is the provision of global compliance and regulatory services through its Assurance solutions platform. More than half of the top 10 global private banks, asset managers, family offices and independent financial advisors have chosen Amicorp as their preferred business partner because of our specialist knowledge and services in the regulatory and compliance field across various continents.]]></description>
<content:encoded>
<![CDATA[ <h2>Amicorp Group: Assurance Solutions</h2>
One of Amicorp’s core businesses is the provision of global compliance and regulatory services through its Assurance solutions platform. More than half of the top 10 global private banks, asset managers, family offices and independent financial advisors have chosen Amicorp as their preferred business partner because of our specialist knowledge and services in the regulatory and compliance field across various continents.
Across more than 42 offices in over 30 countries. Our aim is to become your strategic partner of choice in delivering our full suite of Assurance services to you and your clients.
New market realities
In an ever-evolving global regulatory landscape, the OECD and local governments are rapidly implementing new global regulations in order to combat tax evasion by taxpayers on their foreign financial accounts and cross-border investments. The OECD has established the Standard for Automatic Exchange of Financial Account Information in Tax Matters and the Common Reporting Standard (CRS).
Today more than 100 jurisdictions all over the world have implemented CRS in their domestic legislation and agreements are being signed to automatically exchange information on financial accounts between CRS participating jurisdictions. This will have a deep impact on your compliance, reporting as well as structuring.
Amicorp Assurance can help financial institutions, family offices, high-net-worth individuals, and asset and fund managers with all the CRS compliance requirements, from CRS classification, due diligence on account holders, annual reporting to completing self-certification forms.
CRS compliance requirements
All entities classified as Financial Institutions that maintain accounts of reportable persons have compliance and reporting obligations under the CRS. To be compliant, information on all financial accounts and related financial transactions will be annually reported to local tax authorities and subsequently automatically be exchanged between CRS reporting jurisdictions. CRS sets out the personal and financial account information to be reported (balances, interest, dividends and sales proceeds), which financial institutions need to report and the different types of accounts and taxpayers covered (individuals and entities). In addition, funds, trusts, foundations and personal investment entities can be classified as
Financial Institutions depending on facts and circumstances.
CRS services for Amicorp Assurance
<ul>
<li>CRS entity classification</li>
</ul>
Ensuring your entity is classified as Financial Institution-Investment Entity (FI-Investment Entity) or Non-Financial Entity (NFE), either Passive NFE or Active NFE. Classification reports are accessible through our online portal giving full insight into all classification and ongoing actions. And classifications will be aligned with the respective banks / FI’s where financial accounts are held.
<ul>
<li>CRS on-boarding and due diligence of new entity accounts and new individual accounts</li>
</ul>
We help on-boarding entities with their due diligence for CRS purposes. This includes collection and preparation of self-certification forms, review and validation of each accountholder’s information on its CRS status and tax residence. We determine whether information inconsistencies with Financial Institutions exist and work on resolving them.
<ul>
<li>CRSpre-existing account due diligence and enhanced file review</li>
</ul>
We will review the information of account holders to identify any CRS indicia on tax residencies, collect counter evidence where needed. We also review your existing structure or your entire client portfolio, to assess the local disclosure compliance and determine if restructuring measures are necessary and favorable to your needs.
<ul>
<li>CRS Reporting and other regulatory reporting</li>
</ul>
We can prepare and file the annual CRS reporting of Reportable accounts to the AEOI portal of the local tax authorities. We can assist by providing compliance, regulatory, risk management, and corporate secretarial services. We can also provide corporate governance services and a statutory managing director or trustee – keeping you compliant with regulatory and local filing requirements.
<hr>
<div>
For further information, please contact:
<div>
<h3>Eric Boes</h3>
Global Head – FATCA/CRS 
Tel: +31 20 578 8388 
<a href="mailto:e.boes@amicorp.com">e.boes@amicorp.com</a>
</div>
</div>]]>
</content:encoded>
</item>
<item>
<guid>http://www.amicorp.com/AmiNews/2017/october/advantages_spain_etve_aminews.php</guid>
<title>Advantages of Spain’s ETVE for investment entities</title>
<link>http://www.amicorp.com/AmiNews/2017/october/advantages_spain_etve_aminews.php</link>
<pubDate>02 Oct 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2017/januaryadvantages_spain_etve_aminews.jpg" alt="advantages_spain_etve_aminews">
Amicorp Group is an independent global service provider of a broad range of assurance, administrative, legal, corporate secretarial and support services. Our group has specialists worldwide in over 40 offices in over 30 countries.]]></description>
<content:encoded>
<![CDATA[ <h2>Advantages of Spain’s ETVE for investment entities</h2>
Amicorp Group is an independent global service provider of a broad range of assurance, administrative, legal, corporate secretarial and support services. Our group has specialists worldwide in over 40 offices in over 30 countries.
Unlike other corporate trust providers, Amicorp has always had rather than our offices in Europe and USA, a strong focus on the emerging markets. Despite exceptionally high growth coming from our offices in Asia, we still generate more than 50% of our business from Latin America.
One of the subjects that continually interest our clients is the ETVE (Entidad de Tenencia de Valores Extranjeros), the Spanish special holding company regime is a very beneficial regime in a jurisdiction where Amicorp operates and has a strong presence.
Through its historical, cultural and economic links with Latin America, Spain operates as a natural bridge between both, Latin America and Europe. The advantageous tax features of these relationships, a substantial Spanish treaty network with Latin America, and the European connection make Spanish companies very efficient vehicles through which European groups can channel Latin American expansion, as well as a tax-efficient exit route for EU capital investments by non-EU companies or vehicles through which Latin American Groups can invest in Europe. In fact, Spain has signed tax treaties with almost all of the most significant Latin American, European, and Asian countries and as a state member of the European Union can benefit from the European Directives. Furthermore, the Spanish special holding company regime has passed the “harmful tax competition” test of the European Union authorities and is not included in the Code of Conduct black list.
The ETVE is an ideal vehicle for investments in Europe, Latin America, North America and Asia. Spain offers a tax efficient jurisdiction to hold foreign investments, with exemptions granted for dividends and capital gains, and over 93 Double Taxation Agreements with other jurisdictions. In addition to this benefits, for Latin American clients the use of the Spanish language, familiarity with the legal system as Latin American corporate law is based on Spanish law, and Spain’s membership of the European Union, make Spain a more appealing jurisdiction.
The ETVE is a regular legal entity in the form of a limited corporation (SA), or in the form of a private limited company (SL). It is therefore fully subject to the normal corporate tax rate applicable in Spain of 25%, with the sole distinction of providing an exemption for dividends and capital gains deriving from foreign subsidiaries. If certain requirements are met, these types of income will be fully exempt from entering into the taxable base of the company and also this income could be repatriated to the shareholder's country without being liable for Spanish withholding tax.
The ETVE is protected by EU Directives such as the Parent-Subsidiary Directive and the Merger Directive. It is regarded as a Spanish resident for tax purposes regarding the application of Spain’s tax treaties.
The main tax benefits of a Spanish holding company are:
<ul>
<li>Total participation exemption for dividends and capital gains realized on the disposal of shares;</li>
<li>Absence of a withholding tax on distribution of non-Spanish source dividends;</li>
<li>Full deductibility of interest payments;</li>
<li>No capital duty on share-for-share contributions and on the issue of share capital for entities established in certain provinces;</li>
<li>Exemption of overseas branch income;</li>
<li>Spain allows interest relief on borrowings to finance the acquisition of shares in foreign subsidiaries; and</li>
<li>Availability of pre-transaction rulings.</li>
</ul>
Investment structures can utilize different parent companies to optimally suit the investor’s needs. Provided the foreign shareholding receiving the distributions from the ETVE are not located in tax havens, distributions may flow through this jurisdiction and out again to another jurisdiction.
ETVE regime at a glance
<ul>
<li>Corporate purpose and substance: (a) Management and administration of participations in foreign subsidiaries (requires an effective presence) (b) can perform any other activities (c) Majority of directors are Spanish tax residents; the receipt by an ETVE of dividends and capital gains from a sale of participation shares are tax exempt provided:
<ul>
<li>The ETVE:
<ul>
<li>Holds a 5% or greater direct or indirect participation in the distributing foreign (non-EU) affiliate or if the acquisition cost of the shareholding of the Spanish subsidiary exceeds EUR 20 million if certain other requirements are satisfied; and</li>
<li>Holds the participation share for 12 consecutive months.</li>
</ul>
</li>
<li>The participation is:
<ul>
<li>Subject to income tax analogous to the nature of that in Spain of 10% minimum nominal. This is satisfied where the participation is resident in a tax treaty country which includes an exchange of information clause</li>
<li>Entities subject to transparent or attribution to regimes can qualify. Territorial tax systems do not qualify.</li>
<li>Is not resident in a tax haven (except if resident in EU and economic reasons and operative activity are accredited);</li>
</ul>
</li>
</ul>
</li>
<li>Real estate, finance/credit related income qualifies given sufficient operational substance;</li>
<li>Capital losses are deductible. Interest expenses incurred in connection with the acquisition of a foreign participation are deductible.</li>
<li>Even if the above requirements are met, as from January 1st 2015, the Spanish WHT exemption provision includes an anti-abuse rule which requires that, when the majority of the voting rights of the EU parent entity are directly or indirectly held by individuals or entities that are not tax resident within the EU, the incorporation and operation of the EU shareholder must be grounded on sound economic purposes and business reasons.</li>
<hr>
<div>
For further information, please contact:
<div>
<h3>Maria Eugenia Hernández</h3>
Director – Amicorp de España 
+34 932 417 563 
<a href="mailto:me.hernandez@amicorp.com">me.hernandez@amicorp.com</a></div>
</div>]]>
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</item>
<item>
<guid>http://www.amicorp.com/AmiNews/2017/august/us_non-resident_alien_estate_tax_trap</guid>
<title>US Non-Resident Alien Estate Tax Trap by Chinese Owners of US Situs Assets: also significant for other foreign buyers</title>
<link>http://www.amicorp.com/AmiNews/2017/august/us_non-resident_alien_estate_tax_trap</link>
<pubDate>30 Aug 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2017/january/us_non-resident_alien_estate_tax_trap.jpg" alt="us_non-resident_alien_estate_tax_trap">
The United States still remains the emigration destination of choice among Chinese HNWI]]></description>
<content:encoded>
<![CDATA[ <h2>US Non-Resident Alien Estate Tax Trap by Chinese Owners of US Situs Assets: also significant for other foreign buyers</h2>
The United States still remains the emigration destination of choice among Chinese HNWI
On July 15th, 2017 Hurun Research Institute in association with Visas Consulting Group released the “Immigration and the Chinese HNWI 2017”. By surveying early this year hundreds of Chinese HNWI with wealth of between CNY 10 million and 200 million (USD 1.5 million to USD 30 million), and UHNWIs with over USD 30 million who have already emigrated, are applying to emigrate or who plan to do so in future, the report reveals that in terms of property purchasing and emigration, the United States still remains the emigration destination of choice among HNWI. The top destinations for emigration and property purchase are Los Angeles, Seattle, San Francisco, New York and Boston in the United States.
The National Association of Realtors (NAR) data show that in 2016 Chinese dominated the US home sales to foreign buyers: Chinese citizens purchased 29,195 US homes; this results in 11,386 US homes sold to Chinese citizens for investment or occasional use. Chinese buyers were the largest by dollar volume, investing an estimated USD 27 billion into US real estate.
Within China, a case has come to light in which a Chinese entrepreneur in the years since 2009 bought under his own name 20 properties in the United States: 10 in California, 6 in Hawaii, 2 in New York and 2 in Massachusetts. From 2012 his business went downward and all his assets in China gradually were taken over to pay off debts. He died recently and his son went to the United States to inherit the properties, hoping to cash out. To his great astonishment he found out that the properties in New York and Massachusetts had long been confiscated due to unpaid property taxes, and for the other 16 properties he would first need to pay a 40% estate tax to the US in order to inherit from his late father.
Because he is a non-resident alien in the US, he can only get USD 60,000 exemption for the estate. That has sent a shockwave to the HNWIs in China attempting to buy or for those who have already acquired property in the US. In addition to the income tax and various taxes on federal, state, city or even town/village level, estate tax, or elsewhere called inheritance tax, is the type of tax to be paid at death.
In China, culturally, “death” is not really a pleasant or comfortable topic for people to openly talk about, not to mention when coupled with tax. Moreover, thanks to China’s “development” stage, China currently does not have estate tax. For the first decades after the revolution in China, people were generally poor so there was really nothing to pass on or inherit; later after the country’s economy took off in 1990’s, the new wealth was mostly first generation wealth. This generation still wants to grow and exponentially expand their wealth. They also believe they are invincible and will live forever. Certainly the government of China helps reinforce that mentality. The estate tax law has been in the discussion stage since it was first drafted in 2010. Tax and death have therefore been absent from people’s mind.
However, those who have bought properties in the US suddenly find themselves facing US estate tax, and their surviving families are surprised to find out that the US estate tax could take an almost 40% giant bite off the fair market value of the estate of their deceased family member. It makes people regret buying property when compared with the favorable income tax treatment, or at least the equal “national treatment”, enjoyed when they were “enticed and lured” into buying the US properties or stocks.
Since estate tax is a usually an afterlife issue, it only gets people’s attention when they find out that they have to pay the government a big chunk of the estate before they can inherit from their family. US citizens are of course subject to US estate taxation with respect to their worldwide assets, but the US estate tax often catches a non-resident aliens (NRA) family by surprise.
Specifically, for those NRAs investing in the US properties, the estate tax levied under US tax law on the estates of NRAs holding US situs assets including real estate, stock and other valuables after the owner’s death is very unfavorable compared with that on citizens or residents, up to 40% tax for anything beyond the small exemption of USD 60,000. However, though American citizens are subject to US estate taxation with respect to their worldwide assets, the current (for taxable year 2017) estate tax exemption is USD 5,490,000.
Is the deceased a US resident or non-resident alien under the US estate tax rules?
This is a multi-million-dollar question! It is worth especially emphasizing that even to a lot of Green Card holders’ surprise, though automatically “residents” for US tax purposes, they are not necessarily “residents” from US estate tax perspective.
For US income tax purposes the mechanism of determining the “residency” of a foreign national is based on how much time they are physically present in the US or simply holding a Greed Card or not, but the rules on residency for estate tax is not the same. Instead, the “domicile” concept is applied for estate tax in part to find the intention of having made the US her / his permanent home, which should be supported by evidence of the individual’s particular circumstances.
Having determined the estate tax status of the deceased, executors for nonresidents are required to file Form 706NA, United States Estate (and Generation-Skipping) Tax Return, Estate of a nonresident not a citizen of the United States, if the fair market value at death of the decedent's US-situated assets is over USD 60,000. We have uncovered situations where families shockingly got the news that they would be able to inherit from a wealthy relative who had recently passed away, but then equally or even more shockingly found out they were unable to inherit because they did not have the cash to first pay off the estate taxes, accumulated interests and penalties.
Despite the surge in foreign ownership of US assets the IRS is not likely to see an influx of 706-NA forms anytime soon, since the IRS does not learn about the death of the NRA owners of US assets. Though ordinarily the NRA will be asked by the withholding agent to provide W-8BEN to certify his/her non-US status and applicable double-tax treaty benefits, if the surviving family does not come forward voluntarily, and there also does not appear to be any enforcement mechanism for the IRS to reach into foreign countries to collect the tax it says it is owed, especially if the assets are US equities instead of real estate properties, thus this rule is widely ignored worldwide.
However, with the US and counterparty countries implementing the IGA (intergovernmental agreement) under the FATCA (Foreign Account Tax Compliance Act) enacted in 2010, information concerning the NRA’s investment in the US may be disclosed and exchanged to the countries of his or her tax residence. On February 22nd, 2017 the IRS posted on its website “Some Nonresidents with U.S. Assets Must File Estate Tax Returns”. Basically the IRS is reminding the nonresidents (who were not American citizens) that they are subject to US estate taxation with respect to their U.S. situs assets.
The IRS may collect any unpaid estate tax from any person receiving a distribution of the decedent’s property under transferee liability provisions of the tax code. Large penalties apply for non-compliance and estate executor or the transferee may personally become liable for the taxes if not properly paid. In extreme case, the property of the estate can be seized without obtaining a court order to pay off the outstanding estate taxes.
How to plan on estate tax
The most straightforward way is to take advantage of the annual gift exclusion during NRA’s life time. The current annual exclusion amount of gift transfer of US real or tangible property by an NRA is USD 14,000.
As almost always, there are exceptions that may be applicable: Assets that are exempt from US estate tax include securities that generate portfolio interest, bank accounts not used in connection with a trade or business in the US, and insurance proceeds.
Certainly estate tax treaties between the US and other countries often provide more favorable tax treatments to nonresidents by limiting the type of asset considered situated in the US and subject to US estate taxation. Currently there are 15 countries which have such estate tax treaties with the US: these are countries (Australia, Austria, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Netherlands, Norway, South Africa, Sweden, Switzerland and the United Kingdom.
A non-resident alien may find discover they are domiciliary of one of the treaty nations and can enjoy great benefits through such treaties. Executors for nonresident estates should consult such treaties to determine breaks in tax rates, domicile definitions, and additional deductions applicable. Currently there is no estate and gift tax treaty between China and the US.
Practical methods that Amicorp can assist with include:
<ul>
<li>Life Insurance (together with Trust): The insurance trust owns the insurance policies for the NRA. Since after setting up the trust the NRA individual doesn’t personally own the insurance or have any incidents of ownership, it will not be included in the NRA’s estate – thus there is no estate taxes. If the NRA’s estate still has to pay estate taxes after transferring insurance policies to a trust, having the trust buy additional life insurance can surely reduce estate taxes.</li>
<li>QDOT: When the US situs assets are transferred to a NRA surviving spouse, the unlimited marital deduction is available only if the property is transferred into a “Qualified Domestic Trust” (QDOT) for the benefit of the NRA. If QDOT is correctly structured with all the requirements met, it will allow the family to defer estate tax until the surviving spouse’s death. The NRA decedent’s estate should be entitled to the marital deduction and estate tax deferral, just as a US citizen, if the NRA surviving spouse can become the US citizen before her/his own death, provided that before getting the citizenship he/she has been a US resident at the decedent’s death.</li>
<li>Non-US corporations: Planning opportunities involving the formation of non-US corporations holding US situs assets through domestic LLCs might help mitigate or avoid exposure to US estate taxes. When the UBO dies, the non-US corporation does not “die”. Therefore, there is no estate tax triggered upon the UBO’s death. Proactive estate tax planning can completely eliminate this unexpected NRA US estate tax. However, the transfer of US real estate to the non-US entity offers no protection from income taxes on US source income, and the income is still taxable. Moreover, the transfer of US-situs real properties directly owned by foreign persons, including shares of foreign corporation holding US real estate, may trigger FIRPTA (Foreign Investment in Real Property Tax Act) and will be subject to 15% capital gains withholding tax on the proceeds. With all of these significant and confusing tax consequences, unless taking thoughtful pre-immigration and/or pre-acquisition tax planning steps, non-US persons may create for themselves and their families an unnecessary US tax problem after investing in US-situs properties.</li>
<li>Proper tax planning can shield the non-US person from the US estate tax with respect to US assets. Specific plans depend on the particular circumstances of each individual and we encourage that professional advice should always be sought beforehand in order to determine the best structure for the particular client case presented.</li>
</ul>
<hr>
<div>
For further information, please contact:
<div>
<h3>Neville Cen</h3>
Head – Private Clients (North Asia) 
+852 3105 9882 
<a href="mailto:n.cen@amicorp.com">n.cen@amicorp.com</a></div>
</div>
</div>
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<guid>http://www.amicorp.com/AmiNews/2017/july/US_tax_implications_and_reporting_requirements.php</guid>
<title>PFIC, CFC and K-1s: US tax implications and reporting requirements with US investors in offshore funds</title>
<link>http://www.amicorp.com/AmiNews/2017/july/US_tax_implications_and_reporting_requirements.php</link>
<pubDate>25 Jul 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2017/january/US_tax_implications_and_reporting_requirements.jpg" alt="US_tax_implications_and_reporting_requirements">
When offshore funds have US investors, all too often the fund administrators to the offshore funds will have to start dealing with the complex US tax reporting, because US tax law applies to US persons no matter where they live and invest their money.]]></description>
<content:encoded>
<![CDATA[ <h2>PFIC, CFC and K-1s: US tax implications and reporting requirements with US investors in offshore funds</h2>
When offshore funds have US investors, all too often the fund administrators to the offshore funds will have to start dealing with the complex US tax reporting, because US tax law applies to US persons no matter where they live and invest their money.
FATCA has a further complicated the situation, funds now have to either file on behalf of the US investors or at a minimum provide the necessary tax information.
The most frequently asked question by funds and the US investors is what is the appropriate US tax reporting for the investment interest: PFIC (Passive Foreign Investment Company) reporting or Sch. K-1 filing. Contrary to the common “belief” that offshore profits are taxed only when repatriated back to the United States, investing in a PFIC requires the US holders to report and pay tax annually on direct or indirect distributions and gains from disposal of the PFIC shares, while K-1s need to be provided by the partnership to US partners to ensure their current year compliance with US tax rules.
Obviously we need first determine, for US tax purposes, whether a fund is classified as a corporation or partnership type of passive foreign (i.e. non-US) investment entity. That is to say, the legal entity form from the local jurisdiction’s standpoint is not always treated in the same way as it is from a US tax perspective. And, as if it were not complicated enough, US tax law allows for non-US investment vehicles to make the “Check-The-Box” election so as to reclassify a “local” non-flow-through entity (i.e. Corporation) as a flow-through entity (i.e. Partnership) for US tax purposes, or vice versa.
Passive Foreign Investment Company (“PFIC”) for US Investors
A PFIC is defined as a foreign (non-US based) corporation that meets one of the following two tests:
<ol type="1">
<li>Income Test: 75% or more of its gross income is passive income (earnings derived from rental property, limited partnership or other enterprise not actively involved); or</li>
<li>Asset Test: 50% or more of the corporation’s assets produce, or are held to produce, passive income.</li>
</ol>
The PFIC rules were initially designed to catch passive investments placed into foreign corporations, but has also caught unsuspecting taxpayers who have invested in non-US “pooled investments” such as mutual funds, hedge funds, insurance products and pension plans, which usually can be PFICs. And taxpayers can be very surprised in finding out they are subject to the PFIC regime if they invested in a fund which in turn owns a PFIC.
Once we know the US investors have invested in a PFIC, we can look into the implications and reporting requirements so as to determine whether they wish to do nothing, or explore the alternatives.
<ol type="A">
<li>Do Nothing – Default 
 
With “do nothing” approach, under PFIC regime, automatically the US investors are subject to the top individual tax rate (39.6%) for any direct or indirect distributions received, and the gains recognized on a direct or indirect disposal of their shares in PFIC are all treated as ordinary income, even though some, depending on the holding period, should have otherwise been counted as capital gains from disposing the investment. Moreover, interest will be charged and accumulated on unpaid “deferred” tax. This is the most common “reporting method” since most US investors misunderstand PFIC as an exotic and highly specialized investment form/type (rather than a US tax regime) thus are not aware of their having a PFIC, and the time of making elections has already passed before they were aware of the consequences.
 
To avoid the above most punitive “excess distribution”, there are two alternative methods that US tax law allows to elect for: Qualifying Electing Fund (QEF) and Mark-to-Market. 
 
</li>
<li>Qualifying Electing Fund (QEF) 
 
By filing Form 8621 and electing to treat PFIC as a qualified electing fund (QEF), the investors will be able to enjoy the favorable tax rate on capital gains, which otherwise would have been characterized as ordinary income indiscriminately under “do nothing”. The election is basically to allow a PFIC to be treated as a US based fund, it must be made in the first year by the first U.S. person in the ownership chain. To file for the election, the PFIC Annual Information Statement must be issued by the PFIC and signed by a representative of the PFIC for the US shareholder.
 
There are four main pieces of information that a PFIC Annual Information Statement must have: 
 
First, the PFIC Annual Information Statement must indicate the start and end dates of the time period to which the statement applies. 
 
Second, the PFIC Annual Information Statement must contain any one of the following three things: 
 
<ul>
<li>The shareholder’s portion of the ordinary income and capital gains from the fund, or</li>
<li>Information that allows the shareholder to calculate his/her portion of the PFIC’s ordinary income and capital gains for the year, or,</li>
<li>A statement that the foreign corporation has permitted the shareholder to examine its books so that the shareholder can calculate his/her portion of the ordinary income and capital gains.</li>
</ul>
Third, it must indicate the amount of cash and fair market value of other property distributed (or deemed distributed) during the period to which the statement applies. 
 
Lastly, it must contain either a statement that the PFIC will allow the shareholder to inspect its books, or alternative documentation requirements approved by the IRS through a Private Letter Ruling and Closing Agreement. 
 
Understandably, to gather the information for the Annual Information Statement is extremely time consuming, and in reality most funds, even those that are similar to US accounts, do not keep US GAAP accounting and tax records nor will they be able to provide US tax specific information to shareholders. 
 
</li>
<li>Mark-to-Market 
 
If making a QEF election is impossible to achieve, the US investor can choose to annually treat the investment on a Mark-to-Market basis, that is, include unrealized appreciation or depreciation into ordinary income or loss on Form 8621, though the only way to make it possible is if the interest is marketable stock. Because no US tax is deferred, the PFIC taxation rules will not apply when disposing the stock eventually. 
 
There are two no annual reporting (Filing Form 8621) exceptions that we may want to check to see whether applicable: 
 
<ul>
<li>Less than an aggregate USD 25,000 direct investments in PFIC on the last day of tax year;</li>
<li>Less than USD 5,000 if the PFIC is indirectly owned.</li>
</ul>
</li>
</ol>
CFC (Controlled Foreign Corporation)
However in many cases the US shareholders (a U.S. person owns 10 percent or more) have directly, indirectly or constructively owned over 50% of the total combined voting power of all classes of stock entitled to vote or the total value of the stock of the foreign corporation, which under US tax law is defined as a controlled foreign corporation (CFC). If the interest that the US investors have is both a CFC and PFIC, then the CFC rules prevail and Subpart F inclusion (i.e. deemed dividend) need be reported on their current year US tax returns. Here we will not expand on CFC as it is an even more complicated topic with regard to US taxation.
Partnership and Schedule K-1
We now turn our attention to the offshore which is determined for US tax purposes as a foreign investment partnership. Schedule K-1s will be issued to investors who are partners in the partnership.
The Schedule K-1 reports the partner’s distributive share of the taxable income, gain, loss, deduction and credit from the partnership. Funds issue Schedule K-1s with detailed footnotes which include disclosures regarding additional reporting that may be required by the partners on their respective U.S. federal tax returns.
Fund Schedule K-1s with detailed footnotes typically include certain foreign reporting disclosures regarding the fund’s investments in foreign corporations including PFIC, which will require the US tax reporting as explained earlier in the PFIC section. Here you can see once again how an investor must face PFIC issues.
In conclusion
Above is a general summary of the PFIC, CFC and K-1 tax regimes and/or related reporting requirements. The underlying rules are very complicated and there are many more other issues to consider. Many offshore funds are PFICs or foreign partnerships, as fund managers, we need to be sure that we assist US investors to make appropriate elections or provide sufficient tax information allowing them to properly optimize their US tax reporting and compliance.
Amicorp Fund Services
Amicorp Fund Services has the experience and expertise in administering offshore funds with US and non-US investors and provides administration and corporate services to alternative and traditional investment funds on a global scale, with an organizational model designed for maximum synergy and efficiency. Amicorp Fund Services provides services as a fund administrator in Luxembourg, Curaçao, Chile, Cayman Islands, British Virgin Islands, Bahamas, Barbados, Malta, Mauritius, India, Singapore, Hong Kong and Shanghai. The proficiency of our processes and procedures is evident in our ISAE3402 type II certification − awarded by one of the Big Four audit firms. This certification is the successor of what previously was known as SAS 70 type II.
In Amicorp’s experience we find that an agreement with a minimum period of agreement of between 3 and 5 years is the most beneficial for both parties.
If you have clients who need assistance, please feel free to contact Amicorp’s Private Client Unit or Amicorp’s Fund Services Unit.
<hr>
<div>
For further information, please contact:
<div>
<h3>Kin Lai</h3>
Global Head – Fund Services 
Amicorp Hong Kong Limited 
+971 4304 2900 
<a href="mailto:k.lai@amicorp.com">k.lai@amicorp.com</a>
<hr>
</div>
<div>
<h3>Neville Cen</h3>
Director, Business development, Head of private clients – North Asia 
Amicorp Hong Kong Limited 
+852 2161 1902 
<a href="mailto:n.cen@amicorp.com">n.cen@amicorp.com</a></div>
</div>
</div>
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<guid>http://www.amicorp.com/AmiNews/2017/july/amicorps_white_label_services_offering.php</guid>
<title>Amicorp’s White Label Services Offering</title>
<link>http://www.amicorp.com/AmiNews/2017/july/amicorps_white_label_services_offering.php</link>
<pubDate>24 Jul 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description>
<![CDATA[Allowing your company to remain focused yet also expand your client base and your global offering
<img src="http://www.amicorp.com/AmiNews/2017/july/amicorps_white_label_services_offering.jpg" height="120" width="500" />
]]>
</description>
<content:encoded>
<![CDATA[
<h2>Amicorp’s White Label Services Offering</h2>
Allowing your company to remain focused yet also expand your client base and your global offering
Amicorp would like to announce the launch of a formal White Label Services Offering.
Amicorp is available to enter into business partnerships with other Management Companies and Qualified Intermediaries such as Law Firms, Trust Companies, Tax Firms, Investment Management Companies and Merchant Bankers.
Many single jurisdiction Management Companies and service providers find it difficult to service their clients global needs and to that effect they are left with either the choice of incurring higher costs of complete new operations set up, or they the run risk of losing the client to another provider. 
White label agreements have proved a means for such companies to expand their business offerings, whilst remaining efficient and focused, as well as offering a means to expand their client base.
Amicorp is an ideal business partner for such management companies and service providers, not least due to our extensive global network and substantial service and product offering.
How is the White Label Services offering different from other Referral or Intermediary arrangements? 
This offering is designed for companies who would like to offer solutions under their own brand and umbrella and would like to have Amicorp at the background providing expertise. 
As your firm wishes to globalize and increase its service offering, there are three main issues that need to be addressed in terms of critically examining how to optimally deliver fiduciary services:
<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td align="center"><img src="http://www.amicorp.com/AmiNews/2017/july/Dollar.jpg" width="100px" height="100px"></td>
<td abbr=""align="center"><img src="http://www.amicorp.com/AmiNews/2017/july/Exclamation.jpg" width="100px" height="100px"></td>
<td align="center"><img src="http://www.amicorp.com/AmiNews/2017/july/Chart.jpg" width="100px" height="100px"></td>
</tr>
<tr>
<td align="center">Managing costs</td>
<td align="center">Controlling risk</td>
<td align="center">Revenue growth</td>
</tr>
<tr>
<td align="center">Compliance Front office staff Technology upgrades and innovation</td>
<td align="center">Client suitability Investment performance Changing regulations</td>
<td align="center">Shrinking margins New revenue sources Higher margin products Net new assets</td>
</tr>
<tr>
<td align="center"abbr=""><img src="http://www.amicorp.com/AmiNews/2017/july/Tick blue.jpg" width="50px" height="50px"></td>
<td align="center"><img src="http://www.amicorp.com/AmiNews/2017/july/Tick green.jpg" width="50px" height="50px"></td>
<td align="center"><img src="http://www.amicorp.com/AmiNews/2017/july/Tick orange.jpg" width="50px" height="50px"></td>
</tr>
</tbody>
</table>
 
<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td>
Why partner with Amicorp’s White Label Services?
<ul>
<li>Flexibility of service capability
<ul>
<li>Access a platform that offers scale, flexibility and reliability </li>
<li>24/7 delivery: global support across all time zones to ensure 24 hour turnaround to client requests </li>
<li>Access to an increasing number of fiduciary solutions </li>
<li>Global product offering with local presence in all key jurisdictions </li>
<li>Access to Amicorp’s global marketing material</li>
</ul>
</li>
<li>Cost efficiency
<ul>
<li>Improved cost efficiency through economies of scale </li>
<li>Growing and supporting your client base with an extensive fiduciary offering whilst managing your cost </li>
<li>Scalable and transparent pricing</li>
</ul>
</li>
<li>Operational excellence
<ul>
<li>Ensure consistently high standards of performance and risk management </li>
<li>Technical knowledge at a jurisdictional level </li>
<li>Dedicated Amicorp team to manage the relationship with your firm, with dedicated client service team where direct access required</li>
</ul>
</li>
<li>Innovation
<ul>
<li>Access to global and local expertise in areas of product development and regulatory change (i.e. FATCA / CRS / BEPS)</li>
</ul>
</li>
</ul>
</td>
</tr>
</tbody>
</table>
 
The service / product offering we can deliver includes:
Amicorp Company Management Jurisdictions:
<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td valign="top"><table width="100%" border="0" cellspacing="0" cellpadding="0">
<tr>
<td width="127" valign="top">Jurisdiction</td>
<td width="173" valign="top">Entity type and/or service</td>
</tr>
<tr>
<td width="127" valign="top">Bahamas</td>
<td width="173" valign="top">IBC</td>
</tr>
<tr>
<td width="127" valign="top">Barbados</td>
<td width="173" valign="top">IBC</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">Domestic Ltd.</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">Barbados External Ltd. Company</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">SRL</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">SCC</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">ISRL</td>
</tr>
<tr>
<td width="127" valign="top">British Virgin Islands</td>
<td width="173" valign="top">BVIBC</td>
</tr>
<tr>
<td width="127" valign="top">Cayman Islands</td>
<td width="173" valign="top">IBC Exempt Company</td>
</tr>
<tr>
<td width="127" valign="top">Chile</td>
<td width="173" valign="top">SPA/SA</td>
</tr>
<tr>
<td width="127" valign="top">China</td>
<td width="173" valign="top">Limited Company</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">Rep. Office</td>
</tr>
<tr>
<td width="127" valign="top">Curaçao</td>
<td width="173" valign="top">BV</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">NV</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">CV</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">SPF</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">Foundation (STAK)</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">Foundation (Management)</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">Stitching</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top"> </td>
</tr>
<tr>
<td width="127" valign="top">Cyprus</td>
<td width="173" valign="top">Ltd.</td>
</tr>
<tr>
<td width="127" valign="top">Delaware</td>
<td width="173" valign="top">LLC multi-member no US director</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">LLC single-member no US director</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">LLC multi-member US director</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">LLC single-member US director</td>
</tr>
<tr>
<td width="127" valign="top">Dubai/UAE</td>
<td width="173" valign="top">RAKIC</td>
</tr>
<tr>
<td width="127" valign="top">Florida </td>
<td width="173" valign="top">LLC multi-member no US director</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">LLC single-member no US director</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">LLC multi-member US director</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">LLC single-member US director</td>
</tr>
<tr>
<td width="127" valign="top">Hong Long</td>
<td width="173" valign="top">Ltd.</td>
</tr>
<tr>
<td width="127" valign="top">India</td>
<td width="173" valign="top">Indian Private Limited Company</td>
</tr>
<tr>
<td width="127" valign="top">Ireland</td>
<td width="173" valign="top">Ltd. Company</td>
</tr>
<tr>
<td width="127" valign="top">Luxembourg</td>
<td width="173" valign="top">SA</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">SARL</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">SCA</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">SCSP</td>
</tr>
</table></td>
<td valign="top"><table border="0" cellspacing="0" cellpadding="0">
<tr>
<td width="127" valign="top">Jurisdiction</td>
<td width="175" valign="top">Entity type and/or service</td>
</tr>
<tr>
<td width="127" valign="top">Malta </td>
<td width="175" valign="top">Ltd.</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">Licensed Trustee </td>
</tr>
<tr>
<td width="127" valign="top">Mauritius</td>
<td width="175" valign="top">GBL1</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">GBL2</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">Domestic</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">Foundation</td>
</tr>
<tr>
<td width="127" valign="top">Monaco</td>
<td width="175" valign="top">Management of IBC</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">Relocation Services</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">SCI</td>
</tr>
<tr>
<td width="127" valign="top">Netherlands</td>
<td width="175" valign="top">BV</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">NV</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">CV</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">CV with Foundation</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">COOP</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">Netherlands CV with STAK</td>
</tr>
<tr>
<td width="127" valign="top">Nevis</td>
<td width="175" valign="top">IBC</td>
</tr>
<tr>
<td width="127" valign="top">New Zealand</td>
<td width="175" valign="top">LP</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">General Partner for Limited Partnership</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">NZ Ltd. as PTC</td>
</tr>
<tr>
<td width="127" valign="top">Panama</td>
<td width="175" valign="top">Foundation</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">SA</td>
</tr>
<tr>
<td width="127" valign="top">Seychelles</td>
<td width="175" valign="top">SYIBC</td>
</tr>
<tr>
<td width="127" valign="top">Singapore</td>
<td width="175" valign="top">Pte. Ltd.</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">LLP</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">Singapore Public Company</td>
</tr>
<tr>
<td width="127" valign="top">Spain</td>
<td width="175" valign="top">ETVE</td>
</tr>
<tr>
<td width="127" valign="top">Switzerland</td>
<td width="175" valign="top">Branch</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">AG</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">GmbH</td>
</tr>
<tr>
<td width="127" valign="top">UK</td>
<td width="175" valign="top">Ltd</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">LLP</td>
</tr>
<tr>
<td width="127" valign="top">Uruguay</td>
<td width="175" valign="top">SAU and SAU Art. 47 (Joint Stock Company-Corporation</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="175" valign="top">SA Free Zone</td>
</tr>
</table></td>
</tr>
</tbody>
</table>
 
<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td width="127" valign="top">Jurisdiction</td>
<td width="173" valign="top">Trust Type</td>
</tr>
<tr>
<td width="127" valign="top">Barbados</td>
<td width="173" valign="top">Trust</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">POINT</td>
</tr>
<tr>
<td width="127" valign="top">British Virgin Islands</td>
<td width="173" valign="top">Trust</td>
</tr>
<tr>
<td width="127" valign="top"> </td>
<td width="173" valign="top">Vista Trust</td>
</tr>
<tr>
<td width="127" valign="top">Cayman</td>
<td width="173" valign="top">Trust</td>
</tr>
<tr>
<td width="127" valign="top">Curaçao</td>
<td width="173" valign="top">Curaçao Trustee</td>
</tr>
<tr>
<td width="127" valign="top">Delaware</td>
<td width="173" valign="top">Trust</td>
</tr>
<tr>
<td width="127" valign="top">India</td>
<td width="173" valign="top">Trust</td>
</tr>
<tr>
<td width="127" valign="top">Mauritius</td>
<td width="173" valign="top">Trust</td>
</tr>
<tr>
<td width="127" valign="top">Nevis</td>
<td width="173" valign="top">Trust</td>
</tr>
<tr>
<td width="127" valign="top">New Zealand</td>
<td width="173" valign="top">Trust</td>
</tr>
<tr>
<td width="127" valign="top">Singapore</td>
<td width="173" valign="top">Trust</td>
</tr>
<tr>
<td width="127" valign="top">Switzerland</td>
<td width="173" valign="top">Swiss Trustee</td>
</tr>
</table>
 
What constitutes the best forms of agreement? 
<ul>
<li>In Amicorp’s experience we find that an agreement with a minimum period of agreement of between 3 and 5 years is the most beneficial for both parties.</li>
<li>Our service offering for Third Party KYC Reliance is applicable for Partners from FATF White Listed Countries only.</li>
<li>For those from a non-FATF List, KYC Reliance would have to be looked at on a case by case basis.</li>
</ul>
<hr>
For further information, please contact: 
<div>
<h3>Debashish Dasgupta</h3>
Head – Corporate Clients 
+971 4304 2900 
<a href="mailto:d.dasgupta@amicorp.com">d.dasgupta@amicorp.com</a>
<hr></div>
<div>
<h3>Kiran Kumar</h3>
Chief Operating Officer, COO / Managing Director 
Amicorp Singapore 
+65 6532 2902 
<a href="mailto:k.kumar@amicorp.com">k.kumar@amicorp.com</a>
<hr></div>
<div>
<h3>Derk Scheltema</h3>
COO – Client Production 
+599 9 434 3500 
<a href="mailto:d.scheltema@amicorp.com">d.scheltema@amicorp.com</a>
</div>
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<guid>http://www.amicorp.com/AmiNews/2017/july/the_most_recent_cfc_case_in_china.php</guid>
<title>The most recent CFC case in China</title>
<link>http://www.amicorp.com/AmiNews/2017/july/the_most_recent_cfc_case_in_china.php</link>
<pubDate>20 Jul 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description>
<![CDATA[Anti-abuse mechanism increase in the era of BEPS
<img src="http://www.amicorp.com/AmiNews/2017/july/the_most_recent_cfc_case_in_china.jpg" height="120" width="500" />
]]>
</description>
<content:encoded>
<![CDATA[
<h2>The most recent CFC case in China</h2>
Anti-abuse mechanism increase in the era of BEPS
In a recent CFC case the Suzhou Industrial Zone Tax Bureau of Jiangshu Province attributed the undistributed profits of a Hong Kong company (“HK HoldCo”) to its Chinese resident parent company (“ParentCo”). The tax authorities attributed the profits based on China’s controlled foreign corporation (“CFC”) rules and collected more than RMB 7.7788 million (approx. USD 1.14 million) in taxes from the ParentCo. This is the most recent case on record of China enforcing CFC rules after the 2014 Shandong case and may predict a trend of strengthening anti-abuse mechanisms in line with the OECD BEPS action measures.
Background
The CFC rules have been in existence since 1 January 2008 when the Enterprise Income Tax Law took effect in China. The rules were created to prevent Chinese enterprises from leaving profits in low tax jurisdictions through various arrangements without business substance in those jurisdictions. However, these were rarely if ever enforced until 2014 with the case by the Shandong Tax Bureau.
According to the CFC rules, the profits of a CFC established in a low-tax jurisdiction will be included in the Chinese corporate shareholder’s taxable income in the current year if the CFC does not distribute profits without valid business reasons for the decision not to distribute the profits. A low-tax jurisdiction refers to a jurisdiction where the effective income tax rate is lower than 50 percent of the EIT rate (in other words 12.5% or less).
A CFC is defined as a non-Chinese company if:
<ol type="1">
<li>Each shareholder that is a Chinese resident (enterprise or an individual) directly or indirectly holds at least 10 percent of the voting shares of the foreign company;</li>
<li>Those shareholders with 10 percent or more of voting shares jointly own more than 50 percent of all shares; or</li>
<li>The Chinese-resident enterprise or individual has actual control over the foreign company by virtue of shares, capital, business operations, or purchases and sales in any other situation.</li>
</ol>
Exceptions for CFC rules include:
<ol type="1">
<li>The CFC is located in white-listed jurisdictions, for instance Australia, Canada, France, Germany, India, Italy, Japan, New Zealand, Norway, South Africa, the UK and the US;</li>
<li>The CFC’s income is generated mainly from active business operations; or</li>
<li>The annual profits of the CFC are lower than RBM 5 million.</li>
</ol>
Case facts
Hong Kong Subsidiary (HK SubCo), incorporated in September 2009, was a wholly owned subsidiary of ParentCo, which was registered in a Suzhou Industrial Zone.
Starting from 2014, HK SubCo turned to be profitable. Its net profit at the end of 2015 was RMB 31.156 million (USD 4.5 million), however it didn’t make any distribution to Parent Co. Subsequently, the Suzhou Industrial Zone Tax Bureau launched an investigation. Uncooperative as ParentCo was in providing detailed financial information of HK SubCo, the tax authority was able to gather from other sources the outbound investment information that HoldCo had submitted. From the shared information, Suzhou tax authority concluded that the majority of HK SubCo’s 2014 and 2015 income were from investment and equity transfer, which was unrelated to its main operation of business. With that, ParentCo afterwards provided HK SubCo’s financial information, and Suzhou tax authority further found out HK SubCo had never paid Hong Kong tax on the gain since the gain was from offshore.
After several rounds of negotiations, Suzhou tax authority concluded:
<ul>
<li>HK SubCo was a CFC since it was wholly owned by the ParentCo;</li>
<li>HK SubCo was established in Hong Kong where the effective income tax rate is lower than 12.5 percent, which was HK Holdco’s effective tax rate rather than its Hong Kong headline rate; and</li>
<li>HK HoldCo only derived passive income and did not utilize the profits in business development thus undistributed without reasonable commercial need.</li>
</ul>
Though the ParentCo tried to challenge the tax bureau’s ruling for applicable invoking exceptions to CFC rules, with no success it eventually agreed to pay more than RMB7.788 million (USD 1.14 million) in Enterprise Income Tax (EIT).
Observations
The Suzhou tax authority seemingly used a company’s effective income tax rate rather than the headline rate in a particular jurisdiction when applying the CFC rules. Since the headline income tax rate in Hong Kong is 16.5%. Further, the key condition of applying CFC rules, i.e., without valid business reasons, was explained to some degree. Most importantly, the company’s attempt to apply for exception of “income derived from active trade or business” was denied for the reason that the gain had been passive income.
In addition to explaining how the tax authorities will apply the CFC rules, this case may more generally indicate their increasing willingness to enforce the CFC rules with the support of shared information and resources in their investigations, due to increased global transparency.
Conclusion
The CFC legislation is one of the general-anti avoidance rules (GAAR) that is being implemented in China, its purpose is not to create obstacles for overseas investments but rather it is aimed to promote a fair business environment for all tax payers. Chinese tax payers should be aware of such anti avoidance measures when structuring their foreign investments, so as to comply with the local tax legislations and also manage their tax risks.
In order to mitigate Chinese CFC risks, we may suggest that Chinese tax payers to carefully structure their foreign investments so that they do not fall into the scope of CFC, amongst others this may include:
<ol type="1">
<li>Directly or indirectly does not hold 10% or more control in the foreign entity, for example, by establishing an irrevocable Foreign Trust may suggest that the Chinese tax payers do not legally own or having control over the foreign assets;</li>
<li>The foreign entity is incorporated in a white list jurisdiction, provided this meets other commercial objectives of the company’s business;</li>
<li>The foreign entity conducts active business that generate sufficient income which satisfy the active business test;</li>
<li>The foreign entity makes reasonable distribution to the Chinese parent company so that some profits are taxed timely in China;</li>
<li>The foreign entity has an annual profit of under RMB 5 million (approx. USD 730k).</li>
</ol>
Furthermore, a company established in a foreign country in accordance with the legislation of that country may still triggers Chinese taxation, if such foreign entity deemed to have it POEM in China, in which case, such foreign entity will be subject to enterprise income tax in China. The Chinese tax authorities apply the totality of facts when assessing POEM. Such factors include the place of the board meetings, the place where the strategic decisions are made, the place where the board of directors carries out their duties in their position as board of directors, etc. There is no single factor which would determine whether the POEM is in China. To mitigate the POEM risks in China, we would recommend that the business decisions of such foreign entities should not be made in China, and it would be best to consider having all decisions made locally in that foreign jurisdiction or engage local directors.
<hr>
For further information, please contact: 
<div>
<h3>Neville Cen</h3>
Director, Business development, Head of private clients – North Asia 
Amicorp Hong Kong Limited 
+852 2161 1902 
<a href="mailto:n.cen@amicorp.com">n.cen@amicorp.com</a>
<hr>
</div>
<div>
<h3>Jinqian (Jane) Wang</h3>
Director, Corporate structuring and product development 
Amicorp Hong Kong Limited 
+86 755 2382 2952 
<a href="mailto:j.wang@amicorp.com">j.wang@amicorp.com</a></div>
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<guid>http://www.amicorp.com/AmiNews/2017/june/regulations_for_capital_repatriation_2017.php</guid>
<title>Mexico: Regulations for Capital Repatriation 2017</title>
<link>http://www.amicorp.com/AmiNews/2017/june/regulations_for_capital_repatriation_2017.php</link>
<pubDate>07 Jun 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description>
<![CDATA[
As previously mentioned in an Aminews, on January 18th, 2017 a Decree for repatriation of funds maintained outside Mexico by Mexican companies, individuals and permanent establishments in Mexico (the “Decree”), was published in the Federal Official Gazette.
<img src="http://www.amicorp.com/AmiNews/2017/june/regulations_for_capital_repatriation_2017.jpg" height="120" width="500" />
]]>
</description>
<content:encoded>
<![CDATA[
<h2>Mexico: Regulations for Capital Repatriation 2017</h2>
As previously mentioned in an Aminews, on January 18th, 2017 a Decree for repatriation of funds maintained outside Mexico by Mexican companies, individuals and permanent establishments in Mexico (the “Decree”), was published in the Federal Official Gazette.
Such decree establishes a tax amnesty program which include paying a preferential income tax rate of 8% for the offshore funds (maintained abroad before December 31, 2016) that are repatriated between January 19, 2017 and until July 19, 2017. Please note that the repatriation is about previously undeclared assets, since taxpayers are only forced to pay the mentioned flat rate of amounts that have not paid the corresponding Mexican tax income.
Article eleven of the Decree establishes that the Mexican Tax Authorities (Servicio de Adminsitracion Tributaria, “SAT”) could issue general rules for due application of the Decree.
Those rules were published on May 15, 2017 and among other establish the following:
<ul>
<li>They clarify how payment of the 8% income tax rate should be made (first the UBO shall repatriate the funds to a Mexican financial institution, then file a return in the SAT web portal to ask the Tax Authorities the amount they should pay, then SAT will give them a wire transfer payment code and after that they could make the corresponding payment which should be made no later than August 3, 2017);</li>
<li>If repatriation is made by multiple transactions the abovementioned procedure should be applied each time;</li>
<li>It clarifies that the investment of the repatriated funds can be made in financial instruments (such as debt, equity, guarantees) issued by Mexican companies in Mexican Pesos or in foreign currency;</li>
<li>Rules do not confirm if only the income is subject to repatriation, but they exempt from the tax base the amounts repatriated that can be evidence to be tax compliant (for which there was no obligation to pay the income tax (for example, earnings obtained from a trust to finance descendants education up to an undergraduate degree), or were exempt of income tax payment (for example, inheritance, or donations among spouses or among ascendants and descendants in direct line), or because they already paid the income tax);</li>
<li>Rules allow for the offset of favorable tax credits against the 8% income tax due from the repatriation;</li>
<li>Rules grant individuals the possibility to pay taxes and products with the repatriated funds (in the Decree this benefit was granted only to companies);</li>
<li>Taxpayers who have acquired shares or debt instruments issued by foreign residents before December 31, 2016 could sale such titles and repatriate both the gain from the sale of the instrument and the capital thereof, paying the 8% income tax rate only for the gain if they could evidence capital already paid taxes in Mexico. This is also applicable to capital reimbursements of foreign entities; and</li>
<li>Originally the Decree did not considered taxpayers currently under a tax audit as eligible of the advantages provided by the Decree. In these rules they extend the repatriation benefit for those taxpayers.</li>
</ul>
If you are interested in more information related to this matter please contact your account manager, Amicorp Mexico or the Private Clients Unit.
Amicorp’s Services:
Amicorp, together with the client’s advisor, can:
1. Support in getting the relevant documents of the structures prepared (documents of trusts, foundations, companies, funds, legalized or translated); 
2. Request and collect all relevant bank documents; and 
3. Analyze case-by-case in order to provide a potential solution.
<hr>
For further information, please contact: 
<div>
<h3>Geralda Kral-Buckley</h3>
Global Head – Private Clients 
+41 44 252 08 80 
<a href="mailto:g.buckley@amicorp.com">g.buckley@amicorp.com</a>
<hr>
</div>
<div>
<h3>Juan Pablo Demichelis</h3>
Director - Cross Border Transactions Structuring 
+52 55 5202 5999 
<a href="mailto:j.demichelis@amicorp.com">j.demichelis@amicorp.com</a></div>
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<guid>http://www.amicorp.com/AmiNews/2017/may/transferring_an_offshore_entity_to_malta_or_cyprus.php</guid>
<title>Transferring an offshore entity to Malta or Cyprus: Amicorp makes it easy</title>
<link>http://www.amicorp.com/AmiNews/2017/may/transferring_an_offshore_entity_to_malta_or_cyprus.php</link>
<pubDate>18 May 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description>
<![CDATA[
In this Aminews we describe the benefits and ease of re-domiciliation from an offshore jurisdiction to either of two European Union ones – Malta or Cyprus.
<img src="http://www.amicorp.com/AmiNews/2017/may/transferring_an_offshore_entity_to_malta_or_cyprus.jpg" height="120" width="500" />
]]>
</description>
<content:encoded>
<![CDATA[
<h2>Transferring an offshore entity to Malta or Cyprus: Amicorp makes it easy</h2>
In this Aminews we describe the benefits and ease of re-domiciliation from an offshore jurisdiction to either of two European Union ones – Malta or Cyprus.
There are various reasons why a company or other legal entity would want to change its jurisdiction, these including changes in the political, economic and fiscal environment, and the recent drive towards transparency and compliance. This has meant that companies are looking for more “robust” locations such as Malta and Cyprus.
However, these are not the only reasons for re-domiciliation. Other factors include:
<ul>
<li>Simplifying group structures (merging and/or consolidating vehicles and regulatory licenses);</li>
<li>Addressing capital adequacy and solvency requirements;</li>
<li>Taking the opportunity to dispose of non-core business;</li>
<li>Developing core business and associated infrastructure;</li>
<li>Ability to create better governance, create enhanced substance activities with added value in a near-shore location;</li>
<li>With the POEM moved to near-shore, there is less risk that POEM is in country of the UBO;</li>
<li>Supports more optimal transfer pricing;</li>
<li>Investments in EU and OECD entities will in many countries not be subject to CFC rules;</li>
<li>Asset protection through Trusts, as well as segregation of assets legislation for the likes of investment funds and securitization vehicles where applicable;</li>
<li>Geographical risk spreading, such as hospitality and healthcare investments from outside the EU;</li>
<li>Offers a center of excellence in niche markets, such as the small to medium companies and start-ups;</li>
<li>A flexible but robust and reputable financial services sector; and</li>
<li>Finally, whilst not the subject of this article, companies are also relocating to Malta and Cyprus due to “Brexit”.</li>
</ul>
Choosing the right country
Once the decision is taken to re-domicile, the next step is to choose the right country, taking into account factors such as:
<ul>
<li>Sovereign credit rating: this will give an insight into the level of risk associated with the new country;</li>
<li>Political stability: the entity would want assurance that the political environment is a business friendly and stable one on which to build a long-term vision;</li>
<li>Markets access: choosing the right country can also result in new markets penetration, for example to enter the EU market through one of its member states;</li>
<li>Operating costs: set-up and recurrent costs need to be competitive, ensuring that the long term advantages of the new country outweigh the total costs and taxes; and</li>
<li>Fiscal environment: a fiscally stable and competitive country, with transparent incentives, allowances, tax rebates and extensive double taxation agreements will be an added benefit.</li>
</ul>
In most cases, the easiest option is to incorporate a new entity in a second country whilst closing down the one in the first country. However, this is not always possible where for example a company wants to retain its trading history or it has a number of open contracts. In such cases, provided that both countries recognize this concept in their respective law, re-domiciliation would be the choice.
<h3>MALTA: Reasons and examples of re-domiciliations</h3>
Malta is an EU member state offering political and economic stability as certified through the main credit rating agencies which repeatedly rate it as an “A” country. It has a robust banking system and has one of the best performing EU GDPs.
When re-domiciling to Malta, a company will become subject to Maltese law and regulations and is treated as ordinarily resident and domiciled in Malta for tax purposes. This will allow it to benefit from Malta’s extensive double-taxation treaty network with over 70 countries. The country is also the only EU member state which adopts the full imputation tax system through which shareholders are entitled to claim refunds on the tax paid by the company. Refunds vary in line with the source out of which the dividend is being distributed, this potentially enabling shareholders to reduce the effective tax rate to 10%, 5% or have such income exempted from tax. There are also tax exemptions or benefits offered to special categories of employees.
The country offers a well-developed telecommunications and IT infrastructure, a highly productive, multi-lingual and well educated workforce. Office space is offered at relatively low rents and employee remunerations are cost competitive, especially when compared to other developed EU jurisdictions. Malta also ranks in the top positions when it comes to the best places to live and work in.
All the above, as well as its continuous success in keeping its regulatory framework in line with the changing demands of the industry and with the requirements laid out at EU level, is facilitating a commercially secure business environment. This in turn is helping international investors setting up or transferring their businesses, such as:
<ul>
<li>Corporates looking for cost-effective and tax efficient solutions for their:
<ul>
<li>International structuring;</li>
<li>Headquarters;</li>
<li>Treasury units; and</li>
<li>Non-core activities.</li>
</ul>
</li>
<li>M&A transactions, this including an increasing interest from outside the EU;</li>
<li>Securitization transactions enabling a number of possible advantages to originators and investors;</li>
<li>Investment funds and asset managers, in which Malta is consistently ranked as one of Europe’s top domiciles;</li>
<li>Ship registration, with the Maltese flag being the most popular in Europe;</li>
<li>Aircraft registration, with Malta now committed in replicating its shipping success in aviation;</li>
<li>Trusts and foundations, whereby Malta operates an Anglo-Saxon trust concept within a civil law framework, modernized in line with international trends;</li>
<li>Wealth management, this combining the economic and fiscal advantages with the high quality of life. Such advantages can also include:
<ul>
<li>Yacht and private aircraft registration;</li>
<li>Residence programs, offering a flat tax rate of 15% to individuals such as foreign entrepreneurs, intellectuals, athletes or consultants who could establish a second residence in Malta. Such programs will allow visa-free travel throughout Europe’s Schengen zone +; and</li>
<li>Citizenship through investment in property and financial assets.</li>
</ul>
</li>
<li>Qualifying recognized overseas pension schemes, this making Malta the main market for UK expats’ pensions.</li>
</ul>
According to 2014 figures, 75% of the companies re-domiciled to Malta are from outside the EU, with 33% involved in property activities, 19% in private investment companies and 14% were holding companies.
The reputation and integrity of the country is now well established and Malta is well known for the robustness of its legal, statutory and regulatory framework. As a result Malta is proving ever more appealing for businesses looking to re-domicile from an offshore to a safe and stable EU onshore jurisdiction.
<h3>The re-domiciliation process: MALTA</h3>
The general steps will include the entity to provide:
<ol type="1">
<li>A certificate of good standing issued by the Registrar of the first country;</li>
<li>A Board resolution confirming the intention to re-domicile and the person(s) who will be authorized to execute the change; and</li>
<li>The latest 3 sets of audited financial statements.</li>
</ol>
Once all the required documentation has been accepted by Malta, the Registrar will issue a provisional registration certificate. Following the strike-off of the entity from the first country, Malta will issue a final registration certificate. In cases where the entity carries out a licensable activity, such as for example investment, additional requirements would be applicable.
<h3>CYPRUS: Benefits to re-domiciliation</h3>
The Cypriot economy has quickly recovered from the banking crisis of 2013 and market confidence is restored. The economy is growing at a real GDP rate of 2.9% in 2016 and is expected to further increase. Cyprus’ credit rating was also recently upgraded by S&P to BB+.
Business and Tax Benefits of Cyprus
<ul>
<li>Member of the EU since 2004 and the Euro currency zone since 2008;</li>
<li>Strategic geographical location at the crossroads of Europe, Asia and Africa;</li>
<li>Transparent and effective common law legal system;</li>
<li>Wide DTT network with more than 50 countries;</li>
<li>Several reciprocal agreements are in place for investor protection with many countries, in addition to the full range of common law protection tools;</li>
<li>Low corporate tax rate at 12.5%, one of the lowest rates in the EU;</li>
<li>No WHT in Cyprus on payments of dividends, interest, and royalties to non-residents (apart from royalties paid for IP economically utilized in Cyprus);</li>
<li>No Capital Gains tax in Cyprus except for sale of real estate situated in Cyprus (or company owning real estate in Cyprus unless listed);</li>
<li>Full participation exemption for tax resident companies on dividend income (subject to non-stringent conditions);</li>
<li>No taxation on profits from the sale of securities;</li>
<li>No Controlled Foreign Companies (CFC), thin capitalization, transfer pricing or substance legislation;</li>
<li>Unilateral tax credit relief irrespective of the existence of a tax treaty;</li>
<li>No taxation on liquidation of a Cyprus company;</li>
<li>Notional Interest Deduction (NID), which applies as a deemed interest expense on newly injected capital and can reduce the effective tax rate to up to 2.5%; and</li>
<li>Ideal for business people and entrepreneurs due to abundance of high-skilled professionals at low salary levels.</li>
</ul>
Other Lifestyle Benefits of Cyprus
<ul>
<li>High standard of living yet at low cost;</li>
<li>Modern road infrastructure and connectivity via air and sea;</li>
<li>Low crime rate;</li>
<li>High standard of private schools and universities;</li>
<li>Hospitable people and excellent cuisine;</li>
<li>Ideal for retirees due to the stable, warm climate;</li>
<li>Advanced medical centers; and</li>
<li>Ideal for athletes due to optimum climatic conditions for training.</li>
</ul>
Check out Cyprus’ promotional video on <a href="https://youtu.be/84gLZ0EZNMc" target="_blank">https://youtu.be/84gLZ0EZNMc</a> and Invest Cyprus website <a href="http://www.investcyprus.org.cy/" target="_blank">http://www.investcyprus.org.cy/</a>
Additional Benefits of Cyprus for Individuals
<ul>
<li>Incentives and tax benefits for high-earning employees that relocate to Cyprus;</li>
<li>Entitlement to claim Cyprus tax residency after spending more than 183 days in Cyprus, which allows for 50% exemption from income tax for 10 years for remunerations exceeding EUR 100,000; and 20% for smaller amounts for 5 years</li>
<li>Flat tax rate of 5% for retiree pensions;</li>
<li>Resident non-domiciled status effective, whereby interest, royalties and dividend income, whether sourced in or outside Cyprus not subject to Special Defence Contribution (SDC);</li>
<li>Dual citizenship allowed;</li>
<li>Visa free travel to over 168 countries worldwide;</li>
<li>Express procedure of 3 months to obtain citizenship with minimum investment of EUR 2 million;</li>
<li>Investment may be released after 3 years of holding. (Investing, not donating funds);</li>
<li>Permanent residency can be granted simultaneously with citizenship;</li>
<li>No official data on citizenship applications, thus all applicants’ details remain confidential; and</li>
<li>Citizenship may be granted to spouse, financially dependent children of up to 28 years old and parents of applicant.</li>
</ul>
The re-domiciliation process: CYPRUS
The offshore company must appoint a local approved representative to assist with the re-domiciliation process in Cyprus. The application to be filed with the Registrar and accompanied with a number of documents including:
<ul>
<li>Memorandum and articles of association of the company;</li>
<li>Certificate of good standing;</li>
<li>List of current members and directors of the company; and</li>
<li>An affidavit by a director of the company confirming the company has notified the relevant authority in its current jurisdiction of its decision to re-domicile to Cyprus.</li>
</ul>
A temporary certificate will then be released confirming that the offshore company has re-domiciled to Cyprus and can continue its business activities in line with the laws of Cyprus. Within six months of this, the offshore company must present the Registrar with evidence from the relevant authority that it is no longer registered in the jurisdiction of its incorporation. Once this has been satisfied, a certificate of continuation confirming that the company is registered in Cyprus is issued.
<h3>How Amicorp can assist with the re-domiciliation process</h3>
Amicorp Group is available to assist with any queries you might have in relation to relocating from an offshore jurisdiction to Malta or Cyprus. We can assist in the set-up and on-going maintenance of entities as well as with personalized and family support in your relocation, citizenship and residency needs. In addition, with offices in more than 30 countries, Amicorp offers global solutions and expertise to meet your on-gong global needs.
<hr>
<div>
<h3>Malta - Mario Buttigieg</h3>
Managing Director 
+356 22 58 47 00 
<a href="mailto:m.buttigieg@amicorp.com">m.buttigieg@amicorp.com</a>
<hr>
 
</div>
<div>
<h3>Cyprus - Elia Nicolaou</h3>
Managing Director 
+357 22 504 000 
<a href="mailto:e.nicolaou@amicorp.com">e.nicolaou@amicorp.com</a></div>
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<guid>http://www.amicorp.com/AmiNews/2017/may/uae_offshore_companies_can_they_really_compete.php</guid>
<title>UAE offshore companies: can they really compete?</title>
<link>http://www.amicorp.com/AmiNews/2017/may/uae_offshore_companies_can_they_really_compete.php</link>
<pubDate>08 May 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2017/may/uae_offshore_companies_can_they_really_compete.jpg" height="120" width="500" />
The many advantages of a UAE offshore company]]></description>
<content:encoded>
<![CDATA[<h2>UAE offshore companies: can they really compete?</h2>
The many advantages of a UAE offshore company
The world of offshore companies and set up has been turned upside down in the past few years. A few major shifts and events happened that will have long term impact on the whole offshore industry. These include:
<ul>
<li>The 2008 financial crisis was a catalyst for indebted governments to crack down on tax havens;</li>
<li>The Panama papers was a major PR blow to the industry, and tainted the concept of offshore itself, no matter if the offshore is used in a legal way or not; and</li>
<li>The major push from the USA and the OECD on transparency with initiatives such as FATCA and the Common Reporting Standard.</li>
</ul>
These events are more than simple obstacles on the road of offshore jurisdictions. It has already changed fundamentally the landscape. A good sign of these changing times is that last year, for the first time more offshore entities were closed than opened. This trend is accelerating. The small providers of offshore entities are disappearing and the large providers are getting stricter on which type of clients they can onboard.
The use of offshore entities for confidentiality purposes is now over. With the Automatic Exchange of Information already being enforced in all the major offshore centers, and soon in about 100 countries, there is no point setting up an offshore vehicle if what you are trying to achieve is confidentiality. In addition, with the really bad press that the term “offshore” carries, many high profile corporate groups have ceased to use traditional offshore jurisdictions and are now moving to less conspicuous jurisdictions that will play the same role but won’t be plagued with the same bad reputation and press.
As a result the offshore industry is in turmoil. Demand for such vehicles is decreasing, fees are under pressure, and the cost of compliance from registered agents is increasing. This is unsustainable and many offshore centers will disappear in the near future. Only a few jurisdictions that have managed to position themselves will remain. A few jurisdictions that have managed to stay ahead for the game include the Cayman Islands, Hong Kong, Singapore, Delaware, BVI and Mauritius. There are numerous other jurisdictions offering offshore options but they do not come close in commanding significant market share.
Given this environment, it is fair to ask if it is worthwhile for the UAE to develop its offshore entity offering. In addressing this question it is first useful to understand how the other top offshore jurisdictions are currently being used.
<table width="720" border="1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="159" valign="top">Jurisdiction</td>
<td width="159" valign="top">What is primarily used for</td>
<td width="159" valign="top">Advantages</td>
<td width="159" valign="top">Disadvantages</td>
</tr>
<tr>
<td width="159" valign="top">Cayman</td>
<td width="159" valign="top">Hedge funds for the US</td>
<td width="159" valign="top">Excellent regulatory framework; critical mass in the fund business</td>
<td width="159" valign="top">Difficult and expensive to open bank account</td>
</tr>
<tr>
<td width="159" valign="top">BVI</td>
<td width="159" valign="top">Holding vehicles, SPV</td>
<td width="159" valign="top">Critical mass, known brand, flexible jurisdiction</td>
<td width="159" valign="top">Difficult and expensive to open bank account, lots of questions about substance of BVI</td>
</tr>
<tr>
<td width="159" valign="top">Delaware</td>
<td width="159" valign="top">US-based assets holding vehicle, SPV under a Delaware Trust</td>
<td width="159" valign="top">Quality business friendly environment, not a Caribbean island</td>
<td width="159" valign="top">Not recognized for other worldwide assets</td>
</tr>
<tr>
<td width="159" valign="top">Hong Kong</td>
<td width="159" valign="top">Trading entity</td>
<td width="159" valign="top">Location in Asia</td>
<td width="159" valign="top">Difficult and expensive to open bank account; makes sense mostly for Asian business</td>
</tr>
<tr>
<td width="159" valign="top">Mauritius</td>
<td width="159" valign="top">Holding vehicle, SPV</td>
<td width="159" valign="top">Can be converted easily into an onshore entity that gives tax treaty benefits</td>
<td width="159" valign="top">Difficult and expensive to open bank account</td>
</tr>
<tr>
<td width="159" valign="top">Jersey / Guernsey</td>
<td width="159" valign="top">UK property structure</td>
<td width="159" valign="top">Very close to the UK, legacy in estate planning</td>
<td width="159" valign="top">With new IHT rules offshore structure to hold properties no longer work</td>
</tr>
</tbody>
</table>
 
The above list is actually much longer, but this gives some indication as to main vehicles in demand and the needs of our global clients.
The United Arab Emirates Offshore Entity
In this context, why would the UAE develop its offshore offering? There are 3 jurisdictions offering an offshore set up in the UAE:
<ul>
<li>Dubai: Jebel Ali (Jafza) offshore</li>
<li>Ajman: Ajman offshore</li>
<li>Ras Al Khaimah: RAKICC</li>
</ul>
The JAFZA value proposition was mainly its ability to structure Dubai properties for succession planning. Now with the DIFC will in place, it remains to be seen if the JAFZA offshore will still be relevant in the near future. It is also very expensive. Ajman offshore is starting to pick up some momentum. It is quick and cheap to set up.
Meanwhile the RAK offshore is one of the most used offshore set ups in the UAE. It is relatively inexpensive and also easy to set up.
Currently, all offshore in the UAE pale in comparison to the BVI and Cayman when it comes to brand recognition. We often see that clients want an internationally recognized vehicle. When we discuss the UAE offshore options with them, they ask us to move on to other offshore solutions. They want the BVI or Cayman. However, once we are able to explain some of the main differences, and how the UAE offshore can be better for their business locally, the UAE offshore start to sound exceptionally good to the client of audience we are speaking with.
A major advantage is the banking account opening. If you have tried to open a bank account for a BVI anywhere in the world, you will be able to understand the considerable frustration you will encounter. Most of the banks will tell you that they simply cannot assist you. If, by chance, you find a banker who is willing, you soon get the sense you are dealing in some illegal activity, and in addition the costs involved with everything needed to be certified with an apostil for every document from the BVI, as well as needing to lock down a large sum of money with the bank to make it worth their while. It is an expense that can soon go up to the tens of thousands of USD.
However, if you take the option of an RAKICC offshore, you can open up the bank account with almost all the local banks in about 2 weeks’ time. Furthermore, because it is considered a UAE entity you will not need to spend time or money doing paperwork to get the incorporation documents certified, apostilled, attested across 3 countries.
Another advantage in the case of the RAKICC, is that they now have business activities that are defined in the Memorandum and articles of association. This means that it will be a lot easier to use those entities to handle transactions. The BVI does not have any such categories and it makes it increasingly difficult to justify international transactions.
If you are contemplating the idea of doing some real business in the UAE then the RAKICC gives another major advantage over the BVI. Basically, you can upgrade the offshore to a free zone and get a proper trade license, visas, etc. You simply cannot do this with a BVI. So for startups this is ideal. You can do all your development phase at a very low cost using only an offshore entity and then when you are ready for the next step you convert into a free zone, which also gives you the trade license and visas.
In summary, what we see from our industry is that whilst the UAE entity cannot compete in terms of brand recognition with the other more established offshore centers, when you look at the practicalities, the UAE offshore offering and in particular the RAKICC has a very interesting niche market that it can address.
How can Amicorp in Dubai assist you?
Our office specializes in delivering innovative international structuring solutions in investment, holding, finance, license, and trading. Additionally, Amicorp's office in Dubai can assist clients with establishing and managing free zone entities that benefit their trading activities. Amicorp's thorough knowledge of changing regulations, legislation, and double taxation avoidance agreements results in the best service for our clients.
<hr>
<div>
For further information, please contact:
<div>
<h3>Alexandre Teodoresco</h3>
Business Development Manager 
+971 4304 2900 
<a href="mailto:a.teodoresco@amicorp.com">a.teodoresco@amicorp.com</a>
<hr>
</div>
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<guid>http://www.amicorp.com/AmiNews/2017/march/amicorp-offers-private-label-fund-solutions-for-families.php</guid>
<title>Amicorp offers Private Label Fund Solutions for Families</title>
<link>http://www.amicorp.com/AmiNews/2017/march/amicorp-offers-private-label-fund-solutions-for-families.php</link>
<pubDate>16 Mar 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2017/march/amicorp-offers-private-label-fund-solutions-for-families.jpg" height="120" width="500" />A case study with a Family Office with four different family branches creating one fund]]></description>
<content:encoded>
<![CDATA[<h2>Amicorp offers Private Label Fund Solutions for Families</h2>
A case study with a Family Office with four different family branches creating one fund
Private Label Fund solutions have been utilized by institutional investors and asset managers for some time, but are now increasingly being used by wealthy private clients and families. Private Label Funds are identical, and offer the same protection, as retail funds, but they are designed around the private client’s requirements in terms of type of fund and legal structures. They are seen by many as ideal for private wealth structuring, not least because their existence may not be a matter of public record. The fund can hold a family’s assets including companies, real estate, as well as liquid financial assets.
Families create a customized solution for their specific needs with a consolidated view of their assets
For example, the sub funds of a private fund can have different rights attributable to them. Shares in a liquid financial portfolio can be cashed in, but shares in another sub fund holding the family business may not be disposed of for a set period. With this solution a family can always maintain a consolidated view of their assets, different asset classes can be managed and maintained with different mandates and beneficiaries can have varying levels of participation depending on their shares and classes in the fund.
An added advantage is that many high-net-worth individuals find this structure easier to understand and manage than the more unfamiliar trusts and foundations available to them which some families regard as too restrictive.
<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td>Private Label Funds: tailor made investment funds
Key features:
<ul>
<li>Provide the same protection as commercially offered funds (retail funds), but they are tailored to the client’s needs (type of fund, legal structures)</li>
<li>Funds are very safe investment vehicles due to extensive regulation and supervision</li>
<li>Asset Protection: offer segregated assets (off-balance sheet)</li>
<li>Allow flexible asset allocation (as well as pooling, subscription, redemption)</li>
<li>Complete flexibility in relation to tactical asset allocation, asset classes, investment strategies, regions, currencies, multimanager solutions, etc.</li>
<li>Privacy (beneficial owner is not visible)</li>
<li>Client determines the name of the fund</li>
</ul></td>
</tr>
</tbody>
</table>
 
Amicorp’s Private Label Fund offering
At Amicorp, we provide specialist Private Label Fund solutions. We operate in the well-known jurisdictions for private equity across Europe, Asia, the Caribbean and Africa. We have dedicated service teams with extensive knowledge in their respective jurisdictions and substantial experience in the set-up of Private Label Fund structures with the accompanying fund administration, accounting and corporate management services.
A Global Fund service provider
Amicorp’s Fund Services provides reliable solutions for Private Label funds. Amicorp assists clients with the set up a Private Equity / Private Label fund in respect to the following jurisdictions: British Virgin Islands, Bahamas, Cayman Islands, Chile, Curaçao, Hong Kong, Luxembourg, Malta, Mauritius, Singapore, etc.
Comprehensive Private Label Fund Administration Services
Our global presence and expertise in financial services enables us to offer a broad spectrum of business solutions including NAV calculation, investor services, private equity / private label fund structuring, fund administration and accounting and corporate management.
We are engaged to assist in determining the structure and other details of the fund, in view of the funds specific investment ideas and goals. Advantages and disadvantages of fund jurisdictions are evaluated to ensure that the operation of the fund is as simple as possible, and to avoid regulatory, tax and operational problems. Securities regulations and tax ramifications applicable to the fund’s investors are assessed and addressed in the fund structure.
Amicorp understands that Private Label funds often have complex administration requirements. We also have substantial experience in meeting our clients’ requirements such as multiple closes, non-traditional waterfalls, closed end and limited partnership structures, as well as partner defaults, unseen partner allocations, illiquid securities / non-traditional allocations within general partner entities and tax allocations and partnership closing. We ensure that your fund complies with AIFMD, FATCA and other legislation. This means that you can focus on your fund’s returns, product development and new opportunities.
Fund Set Up and Administration
Our goal is to always create the perfect solution for the specific purpose of the fund in question. Whether choosing the fund’s legal form or drafting the fund documents, every decision is taken with the greatest care and attention, to achieve the long-term objectives of the fund.
<ul>
<li>Amicorp’s experienced and well-connected internal lawyers and tax staff can help clients to provide essential information to select the fund domiciliation jurisdiction. We also share with clients our experience in fund structuring.</li>
<li>We will arrange the required bank accounts, including handle all application documents and coordination of the preferred banks to open the account on behalf of the clients.</li>
<li>Fund Administration faces the challenges of regulation, valuation, transparency and ever-increasing legal complexity. Overcoming these challenges require both a broad knowledge and a significant amount of expertise. At Amicorp we place at your disposal a wealth of experience and our use of cutting-edge systems to meet specific requirements for any type of fund.</li>
</ul>
Location and Establishment of Funds
Amicorp is familiar with providing our Private Label solutions from a variety of locations. Luxembourg, Malta, Cayman Islands, Mauritius and Singapore are the five most popular locations in which Ultra High Net Worths and their families choose to establish Private Label Funds.
<ul>
<li>A jurisdiction should have good tax treaties with the countries in which the UBOs are interested in acquiring private equity. However, in the absence of double taxation treaties, the Private Equity Vehicle can establish a Special Purpose Vehicle (SPV) which has a double taxation treaty with the country where the Private Equity is acquired.</li>
<li>Recommended EU fund jurisdictions are: Luxembourg and Malta.</li>
<li>Recommended non-EU jurisdictions include the Cayman Islands, Mauritius and Singapore.</li>
</ul>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td>Case Study: Example of a Family Office with four different family branches creating one fund
Amicorp has addressed the requirements of a Family Office covering 4 different family branches. This Family Office had investment in several real estate projects in which it invested in for diversification reasons. The Family Office wished to consolidate the money from the different family branches into a fund, and then have the fund invest in different real estate projects.
The advantages of making investments into real estate through a fund
Amicorp established that funds provide privacy when acquiring real estate since compliance will be done on the fund itself and not on the family trusts, which will be investing the funds. The fund was able to hire a specialized private equity investment advisor to clearly stipulate strategy, and Amicorp provided its fund administration, allowing for independent valuation of the fund shares so that the different family branches can trust the valuation. The Fund offers a more professional impression which would allow for the fund to attract additional funding from banks or other families in the future if required.
Investment Method and the Real Estate investments
The UBOs are Settlors and/or Beneficiaries of 3 BVI Trusts with each having an underlying International Business Companies (or IBCs). The UBOs are interested in utilizing funds accumulated in the IBC to reinvest in the collective vehicle and, in turn receive regular dividend distributions. The UBOs were interested in acquiring real estate throughout Europe, and in each country where a real estate investment would be made, a local tax adviser was utilized to provide an opinion on how best to acquire and maintain the real estate in a tax efficient manner, in combination with the collective holding vehicle. Amicorp also needed to coordinate the hiring of professionals to maintain the real estate investments as well as arrange for insurances, payments of bills, etc. The total investments made were EUR 200 million.
Decisions criteria for the legal form of the investment
The UBOs had the option to choose between the following legal forms:
<ul>
<li>Partnerships: Tax transparent (usually no taxes to be paid at the level of the partnership itself as partners pay taxes on an individual level), but often not beneficiaries of double taxation treaties.</li>
<li>Corporate Entities: They are beneficiaries of double taxation treaties, but usually have a withholding tax on the level of the entity and a withholding tax once again when dividends or capital gains are distributed to its shareholders. Because of this reason, sometimes partnerships are more tax efficient.</li>
<li>Funds: There are various forms of funds to choose from. The main differences are Open Ended and Closed ended Funds, and Regulated versus Non-Regulated Funds. Depending on the fund jurisdiction chosen, there a various legal variations available. Regulated Funds often require a license and the asset manager is requires to be licensed and regulated. Therefore, Regulated funds are more reputable, have more investment flexibility, and could be beneficiaries of double taxation treaties.</li>
<li>Non-Regulated Funds: Depending on the Fund jurisdiction, you may still need to have a license for the Fund or for its asset manager. Non-regulated Funds will have investment and size restrictions and is often meant for smaller close ended and non-retail investment funds.</li>
</ul>
Criteria for Fund jurisdiction
The jurisdiction should not be blacklisted, and should have good tax treaties with most European countries in which the UBOs are interested in acquiring real estate. However, in the absence of double taxation treaties, the Real Estate Vehicle was able to establish a Special Purpose Vehicle (SPV) which has a double taxation treaty with the country where the real estate is acquired.
There are advantages with the jurisdiction of the Real Estate being European due to Participation Exemption between the EU member states – and we recommended either Luxembourg or Malta for this particular client.
Summary
Our Family Office client opted for a Luxembourg Non-Regulated Fund structure, which also offered the required substance they were looking for.
<img src="http://www.amicorp.com/AmiNews/2017/march/chart.jpg" alt="Chart"> 
 </td>
</tr>
</tbody>
</table>
<hr>
For further information, please contact:
<div>
<h3>Geralda Kral-Buckley</h3>
Global Head – Private Clients 
+41 44 252 08 80 
<a href="mailto:g.buckley@amicorp.com">g.buckley@amicorp.com</a>
<hr>
</div>
<div>
<h3>Álvaro Becerra</h3>
Head - Global Family Office 
+44 207 977 1278 
<a href="mailto:a.becerra@amicorp.com">a.becerra@amicorp.com</a></div>
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<guid>http://www.amicorp.com/AmiNews/2017/february/amicorps-enhanced-corporate-services.php</guid>
<title>Amicorp's Enhanced Corporate Services offering can assist your business in today's Base Erosion Profit Shifting environment</title>
<link>http://www.amicorp.com/AmiNews/2017/february/amicorps-enhanced-corporate-services.php</link>
<pubDate>27 Feb 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2017/february/amicorps-enhanced-corporate-services.jpg" height="120" width="500" />The tax developments of the past ten years such as BEPS, or Base Erosion and Profit Shifting, have altered the way in which tax planning is being implemented worldwide. More economic substance and value added services are required in the onshore, mid-shore and offshore entities in order to address these developments]]></description>
<content:encoded>
<![CDATA[<h2>Amicorp’s Enhanced Corporate Services offering can assist your business in today’s Base Erosion Profit Shifting environment</h2>
The tax developments of the past ten years such as BEPS, or Base Erosion and Profit Shifting, have altered the way in which tax planning is being implemented worldwide. More economic substance and value added services are required in the onshore, mid-shore and offshore entities in order to address these developments
Among the tax developments over the last few years we have:
<ul>
<li>The referenced BEPS initiative;</li>
<li>EU Anti-Tax Avoidance Directive;</li>
<li>Place of Effective Management or “POEM”;</li>
<li>Foreign Account Tax Compliance Act or “FATCA”; and</li>
<li>Common Reporting Standard, or “CRS”.</li>
</ul>
Why BEPS is important to you?
BEPS and other anti-tax avoidance measures are already a reality being incorporated in different legislations across the world. They are accelerating the global trend toward greater tax and financial transparency. The OECD/G20 BEPS refers to tax planning strategies that exploit gaps, mismatches and loopholes in tax rules and tax treaties in order to make profits “disappear” for tax purposes or to shift profits to locations where there is little or no real activity but where the taxes are low, resulting in little or no overall corporate tax being paid.
The BEPS initiative identifies 15 actions focused on:
<ul>
<li>Establishing coherence in international taxation;</li>
<li>Aligning taxing rights with substance; and</li>
<li>Improving transparency.</li>
</ul>
BEPS is the result of struggling economies driving to obtain more income from their tax base, stronger global focus and public opinion pressure for promoting transparency and the overall movement towards automatic exchange of information on ultimate beneficial owners (FATCA, CRS, AEOI, etc.). In this sense, BEPS aims to deliver tools for governments to close the gaps in existing international rules that allow corporate profits to “disappear” or be artificially shifted to low or no tax jurisdictions, where companies have little or no economic activity.
In essence, the BEPS project attempts to align taxation with activity. Companies should be taxed in the country or countries in which the activities take place. Holding, royalty and finance structures which lack economic substance and are set up for treaty shopping purposes would be impacted by the recommended introduction of Limitation on Benefits provision (LOB) and/or the Principle Purpose Test in tax treaties and denied such benefits. Hybrid mismatch arrangements and thinly capitalized entities will be questioned.
Transfer pricing structures and the allocation of taxable profits needs to be aligned with economic activities and value creation in the respective countries. Aggressive structures have to be disclosed and transfer pricing transactions needs to be properly documented and filed to give tax authorities more information. Already over 90 countries and jurisdictions are members of the new inclusive framework on BEPS, and have committed to implement or participate in the BEPS package.
EU Anti-Tax Avoidance Directive (ATAD)
In June 2016, the EU Council reached political agreement on the Anti-Tax Avoidance Directive (ATAD). The ATAD will be formally adopted in a forthcoming EU Council meeting. The main goal of the ATAD is to ensure a coordinated and coherent implementation at the EU level of some of the OECD’s recommendations regarding BEPS and to add certain anti-tax avoidance measures which are not part of the BEPS project. Among the measures are new rules on controlled foreign companies (CFCs) with the objective of tackling the practices whereby multinationals shift profits from a high-tax country to a low-tax jurisdiction in order to avoid tax. A new exit tax will be levied on companies moving assets such as intellectual property or patents from one tax jurisdiction to another, as well as an interest limitation provision will be introduced (already implemented in Spain). Most elements of the directive will have to be transposed into national law by the Member States by the end of 2018.
Place of Effective Management (POEM) rules
The OECD recognizes the concept of POEM for determination of a company. Company triggering residency under a particular income-tax law may tie break treaty residency in one jurisdiction, which is linked to POEM. In this sense, companies which have a headquarters in one jurisdiction A and have outbound operations should understand the concept of POEM to assess if they would qualify as a tax resident of that jurisdiction A. Health checks of various foreign companies (whether operating or set up for strategic holding purposes) should be conducted.
What are the points to take into consideration for a POEM analysis (and the subsequent service response)? For example:
<ol type="a">
<li>Whether the charter document of the company in jurisdiction A gives veto power to a parent company in jurisdiction B;</li>
<li>Whether board of directors of a company in jurisdiction A merely approves (i.e. in form) the decisions taken by the parent company in jurisdiction B;</li>
<li>Whether secretarial, administrative and accounting work, including operation of the bank account in jurisdiction A is carried out from jurisdiction B;</li>
<li>What is the employee strength and constitution of board of foreign companies, and do they have the competence to exercise independent decisions?</li>
</ol>
Amicorp’s Enhanced Corporate Services
Amicorp, through its various offices, not only provides corporate directors, but also individual directors, executives and employees specialized in the specific market segment of the structure (e.g. consulting, holding, trading); administration of entities; accounting; F&A; corporate legal services; corporate governance; etc., and other enhanced added value services that are functional to the required economic substance.
Efficient structuring is key for every client and it has become more complex to balance operational economic requirements with a sound tax plan following the above described new tax framework. It is then essential to remain compliant while ensuring efficiency across different operations. In this regard, Amicorp has created a strategy to:
<ul>
<li>Create awareness;</li>
<li>Perform Health Checks;</li>
<li>Implement improvements;</li>
<li>Offer Alternative Solutions; and</li>
<li>Continuous Monitoring.</li>
</ul>
Create awareness: What is the level of awareness that you as a client have in terms of the implications of the OECD BEPS Action Plan among companies at the tax function, management and board levels? What steps are you taking in order to address BEPS risk and position your tax functions for success in the years to come? Perform Health Checks: It is necessary to review your existing tax transactions and structures in order to identify potential weakness, and take measures to rectify these areas.
Implement improvements: Depending on each client’s specific circumstances, improvements may include movement of functions, assets and personnel within a client’s group / structure; development of legal, tax and transfer pricing documentation as support and working internal guidelines to mitigate tax risks.
Alternative Solutions: You must engage in BEPS and other anti-tax avoidance measures related consultations to ensure your practical business issues are raised and considered. Effective and alternative solutions can only be forged through broad consultation with tax professionals.
Continuous monitoring: Requires a comprehensive resource to monitor BEPS related developments, including country updates on proposed and enacted tax law changes. Furthermore, a benchmarking analysis to help assess the activities of other companies in their peer group industry.
In order to improve the required economic substance, Amicorp offers a menu of items from which you can select and choose the tailor-made enhanced service offerings vis-à-vis your needs such as:
<ul>
<li>Providing different types of directorship for client entities (e.g. corporate directors, personal directors) based on profile, experience in the specific market segment (in order to align the required added value and economic substance with the holding, finance, royalty, trading, or consulting business of the structure);</li>
<li>Domiciliation services, including provision of registered address, temporary or permanent leasing of offices or provision of furnished office space and other support services;</li>
<li>Enhancing added value by bookkeeping; opening a bank account in the country of incorporation of the fiduciary entity, etc.;</li>
<li>Corporate legal services and governance, etc.;</li>
<li>Tax compliance services, including CIT and VAT registration and filing services, in conjunction with the company’s tax advisors; and</li>
<li>Payroll and HR services, including assistance with hiring staff.</li>
</ul>
How to structure these services in different levels, per activity?
These services can be tailored to the needs of the clients and can also be adapted to the legislation of each country (e.g. Netherlands, Spain, etc.). For Holding companies the focus is to ensure that the most important board decisions are made in the country of incorporation. For consulting and trading companies the focus is to have adequate human and material resources to manage its participations and to ensure that the consultancy service has actually been rendered. The trading company must have a sufficient workforce to perform the trading and other related activities (e.g. trade finance, shipping documents, collection, etc.).
In conclusion
The anti-tax avoidance initiatives like BEPS, POEM and ATAD have already altered the international tax landscape dramatically and tax planning structures that companies have widely employed may no longer be viable. Many countries international tax regimes will be extensively modified as a result of BEPS, POEM and ATAD. Correspondingly, a proactive approach is needed to stay on top of these changes.
For more information on how we can assist you, visit our website <a href="http://www.amicorp.com/">www.amicorp.com</a> or contact our dedicated team directly.
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<guid>http://www.amicorp.com/AmiNews/2017/february/amicorp-dubai-a-place-to-do-business.php</guid>
<title>Dubai: A Place to do Business</title>
<link>http://www.amicorp.com/AmiNews/2017/february/amicorp-dubai-a-place-to-do-business.php</link>
<pubDate>17 Feb 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2017/february/amicorp-dubai-a-place-to-do-business.jpg" height="120" width="500" />In less than 40 years, Dubai has transformed itself from a local trading community into one of the most inspirational, exciting and successful cities in the world. With a diverse, multicultural population, Dubai offers its residents and businesses a unique environment, a bustling metropolis with the cultures of more than 190 nationalities and a quality of life and work unrivalled in the Middle East.]]></description>
<content:encoded>
<![CDATA[ <h2>Dubai: A Place to do Business</h2>
In less than 40 years, Dubai has transformed itself from a local trading community into one of the most inspirational, exciting and successful cities in the world. With a diverse, multicultural population, Dubai offers its residents and businesses a unique environment, a bustling metropolis with the cultures of more than 190 nationalities and a quality of life and work unrivalled in the Middle East.
Why Dubai?
With an indigenous population of just 170,000, the number of Dubai expatriate residents now stands at more than two million, thanks to its lifestyle appeal and investment incentives. The tax-free policies and penalty-free repatriation of earnings have enormous benefits on both a personal and business level, with outstanding opportunities for private savings and professional profits. As thousands of new businesses are discovering each year, Dubai is the perfect gateway between East and West and the lynchpin for the region's imports and exports market – one of the most lucrative in the world.
Competitive advantage: regional headquarters
Dubai is well established as the Middle East's prime destination for the regional headquarters of multinational corporations. Its global reputation as a wealth generator and investment stronghold continues to drive the city's growth. Dubai’s economy is now dominated by knowledge and services based sectors.
The inspirational and innovative businesses which establish themselves in Dubai are supported by the Emirate's overwhelming ambition to drive technology, pioneer new innovation and foster thought leadership. World class leaders in trade, logistics, financial services, hospitality and tourism, real estate, construction and manufacturing now make up over 90% of business activity in the Emirate.
This diversification, along with its strategic location, world class infrastructure and ease of business philosophy make it the natural choice for local and international organizations to either begin operations or expand into the Middle East.
Although its meteoric rise may have been swift, Dubai is well established as the Middle East's prime destination for the regional headquarters of multinational corporations. Its global reputation as a wealth generator and investment stronghold continues to drive the city's growth and attract both worldwide corporations and international SMEs.
Infrastructure
The city's business infrastructure is second to none, with state-of-the-art telecommunications and unparalleled connectivity, all servicing a range of clients from the most established multinational corporations to start-up SMEs.
Accessibility
Dubai's travel and transport network and location as a link between Europe and Asia makes face-to-face meetings simple.
Logistics
Dubai is the third largest re-export hub in the world and home to Jebel Ali port, one of the top ten busiest worldwide. Dubai World Central Airport will be the world's largest and during 2011, its first full year of operation, carried 90,000 tons of air freight.
Events and exhibitions
Dubai hosts leading industry events and exhibitions to millions of trade visitors looking to source local goods and services each year. In its own right, the Meetings, Incentives, Conventions and Exhibitions (MICE) industry generates millions of dollars of revenue for service providers, hotel owners and retailers among many others.
Taxation in the UAE
There are no Taxes levied by the Federal Government on income or wealth of companies and individuals. Further, there are no withholding taxes on outward remittance, whether of dividends, interest, royalties or fees for technical services, etc., from the other businesses operating in the UAE.
However under the Emirates based tax decrees, corporate income tax may be imposed on all companies (including branches and permanent establishment) at a rate of 55%, but in practice the corporate income tax is currently imposed only on oil and gas companies. Municipal taxes are charged in some of the Emirates, customs (import) duties are levied generally at a rate of 5% but there are many items which are duty exempt, such as medicines, most food products, capital goods and raw material for industries etc.
UAE offers 3 types of Legal Entities
<ul>
<li>Mainland UAE licensed entities</li>
<li>Free Zone Companies/Establishments (FZC/FZE)</li>
<li>Offshore Companies</li>
</ul>
Mainland UAE License entities
Mainland License entities are permitted to conduct business within the mainland as sole Proprietorship, Partnership and Limited Liability Company (LLC). It is mandatory to have a local sponsor to conduct business activities. An LLC can be formed with a minimum of two and a maximum of fifty persons and the minimum capital required varied by Emirate (For instance Dubai requires AED 300,000 whereas Abu Dhabi requires AED 150,000).
The UAE commercial Company Law prescribes that the foreign ownership of an LLC may not exceed 49% with the remaining balance of 51% to be held by a UAE national. However, the foreign investor may include the following clauses for protection in the constitutional documents:
<ul>
<li>Right to appoint all of the directors</li>
<li>Right to veto major decisions</li>
<li>Right to assets of the company on winding up</li>
<li>Right to more than 49% of the profits</li>
</ul>
Free Zone Companies/Establishments (FZC/FZE)
UAE’s Free Trade Zones has proved to be attractive for foreign investors, as it permits 100% foreign ownership. There are approximately 36 different Free zones in UAE. Each Free Zone in the United Arab Emirates is designed around one or more business industry categories and only offers licenses to companies within those categories. An independent Free Zone Authority (FZA) in UAE governs each free zone, and is the agency responsible for issuing FTZ operating licenses and assisting companies with establishing their business in the FTZ. Investors in the United Arab Emirates can either register a new company in the form of a Free Zone Establishment (FZE) or simply establish a branch or representative office of their existing or parent company based within the UAE or abroad. Free Trade Zone entities, which are treated differently from ‘Onshore’ entities have their own rules and regulations. These entities are offered guaranteed tax holidays for a period of between 15-20 years, which is renewable.
Advantages & Features
The Free Zone Companies offers UAE Residency option.
<ul>
<li>Free Zone Companies are entitled to apply for Tax Residency Certificates thereby enabling clients to take advantage of the double taxation treaty benefits</li>
<li>The minimum number of shareholders and directors is one.</li>
<li>All shares must be fully paid when allocated and no bearer shares or differential classes of shares are allowed. Some of the Free Zone authorities do not require the company to deposit the capital in bank.</li>
<li>100% foreign ownership permitted and Free Zone authorities do not impose direct taxation or VAT.</li>
<li>Opening a corporate bank account in a bank in Dubai, UAE is permitted.</li>
<li>One stop shop for dealing with Government formalities, which make it smooth and easy to become established.</li>
</ul>
Offshore Companies
Offshore Companies can be registered through the licensed registered agents approved by the respective free zone authority. The Offshore companies in the UAE are offered by the following jurisdictions:
<ul>
<li>Jebel Ali Free Zone Offshore Companies (JAFZA Offshore)</li>
<li>Ras Al Khaimah Free Zone International Companies (RAKIC)</li>
<li>Ras Al Khaimah Investment Authority Offshore Companies (RAKIA Offshore)</li>
</ul>
Advantages
<ul>
<li>Provides commercial confidentiality over financial affairs and allows wealth growth without intrusion.</li>
<li>Asset Protection.</li>
<li>Limited liability.</li>
<li>Eliminate or minimization of capital gains.</li>
<li>Accounting or auditing not mandatory.</li>
</ul>
These offshore companies are allowed to carry on trading activities, act as a holding company and offer investment and consultancy services overseas. The JAFZA offshore is the only offshore entity allowed to own free hold properties in designated areas in UAE. The offshore companies are not permitted to carry on business with persons/companies resident in UAE nor carry on banking, financial or insurance business. The offshore companies can have a bank account in the UAE.
Double taxation treaties
The UAE has signed advantageous double tax treaties with close to 100 countries, making it one of the most efficient jurisdictions to establish holding structures. The UAE has not implemented rules on controlled foreign companies, thin capitalization or transfer pricing.
Common reporting standard and automatic exchange of information
The UAE is a signatory of the Common Reporting Standard and has started collecting the relevant information through the financial institutions. The UAE will start the automatic exchange of information in 2018. Many clients of Amicorp elect to set up their UAE residency in order to be in an advantageous position when it comes to the AEOI. It is a relatively easy and cost effective process. For individuals seeking UAE residency, they can obtain it by incorporating a simple free zone entity, maintain a domicile address, utility bill and traveling to the UAE at least once every 6 months. They can then open the local bank account and use their UAE residency to be classified as a UAE tax resident in the financial institution systems.
<hr>
For further information, please contact:
<div>
<h3>Alexandre Teodoresco</h3>
Business Development Manager 
+971 4304 2900 
<a href="mailto:a.teodoresco@amicorp.com">a.teodoresco@amicorp.com</a>
</div>
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<guid>http://www.amicorp.com/AmiNews/2017/february/amicorp-offers-canadian-limited-partnership.php</guid>
<title>Amicorp offers the Canadian Limited Partnership</title>
<link>http://www.amicorp.com/AmiNews/2017/february/amicorp-offers-canadian-limited-partnership.php</link>
<pubDate>15 Feb 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="2017/february/amicorp-offers-canadian-limited-partnership.jpg" height="120" width="500" />A case study into this effective solution for Mexican clients]]></description>
<content:encoded>
<![CDATA[ <h2>Amicorp offers the Canadian Limited Partnership</h2> A case study into this effective solution for Mexican clients
Amicorp has considerable experience in offering the Canadian Limited Partnership (LP), a highly prestigious Canadian entity well-regarded internationally. For example, we have found that the Canadian LP is particularly popular among our clientele in Mexico, Brazil and other Latin American jurisdictions, offering tax optimization, as well as other significant advantages which are further explained in this Aminews.
What are Limited Partnerships?
Limited Partnerships are a simple form of business registration in Canada, which creates a Canadian entity. A Canadian LP with foreign members, which does not carry on business in Canada, derives no income on Canadian territory, and are managed and controlled outside of Canada, are exempt from Canadian Federal and Provincial corporation taxes.
The LP, under Canadian law, does not have an existence separate and apart from its partners. They are not considered as a taxable entity and therefore are not required to file corporate tax returns and pay income taxes. It is the founders (“Partners”) who are required to pay taxes from the profits received by the LP in their respective place of residence, in proportions according to the shares of interests belonging to them in the partnership.
For these reasons, the Canadian LP is a useful holding entity for foreign investors investing in non-Canadian properties and businesses because of its Canadian tax transparency.
Canadian LP Key Characteristics
<table width="600" border="1">
<tbody>
<tr>
<td>Registered Office</td>
<td>The Canadian LP will typically have a Registered Office address at a Law firm in Canada.</td>
</tr>
<tr>
<td>General Partner</td>
<td>Stand-alone Canadian LP: The structure must include a General Partner and a Limited Partner. Please note that at this time, Amicorp will not be offering the services of General Partner.</td>
</tr>
<tr>
<td>CRS</td>
<td>For CRS purposes, the General Partner may be under a reporting obligation in the jurisdiction where it resides.</td>
</tr>
<tr>
<td>Supervision by Canada’s Central Bank</td>
<td>Registration of an LP in Canada would trigger little or no supervision from the Central Bank of Canada.</td>
</tr>
</tbody>
</table>
 
General Benefits of a Canadian LP
<ul>
<li>The general partner has unlimited liability for the liabilities of the LP. Whereas, the limited partner’s liability is limited to the amount of property that it contributes or that it agrees to contribute toward the capital of the LP;</li>
<li>All profit received by LPs passes through the entity to its partners. Partners, who are not Canadian residents do not have tax liabilities in Canada. If a partner is a Canadian resident, he is required to include his part of profit received through his Limited Partnership into his personal tax return and pay personal income tax;</li>
<li>There is no withholding tax on the profit passed to partners, who are non-Canadian residents;</li>
<li>FATCA: Full pack of classification and sponsoring available;</li>
<li>CRS: reporting is subject to LP’s General Partner’s tax residency.</li>
</ul>
Other advantages of a Canadian Limited Partnership
<ul>
<li>No restrictions on the residency of partners;</li>
<li>Availability of one-man LP, when one person is a sole general and limited partner; a person may be a general partner and a limited partner at the same time in the same LP. Therefore, just one person is needed for registration of limited partnership;</li>
<li>There is no minimum authorized capital. Partners can make any contribution to the limited partnership;</li>
<li>No requirements to file corporate tax returns; and</li>
<li>There are no audit requirements for LPs.</li>
</ul>
Incorporation Process
The standard and prudent practice is to first have the partners enter into a limited partnership agreement. Initially, the limited partnership agreement can be in short-form and subsequently amended and restated when the limited partnership is fully capitalized. After the partners have entered into the limited partnership agreement, a declaration is completed and signed by the general partner who then files it with the Registrar. The information that is disclosed in the declaration is available to the public. The declaration must contain the following information:
<ul>
<li>The name of the limited partnership which must include a legal element, such as "Limited Partnership”;</li>
<li>A description of the general nature of the business;</li>
<li>The names of the general partners, including the residential address and address for service;</li>
<li>The principal place of business in the province of the limited partnership;</li>
<li>The Canadian authorities will proceed to issue a Certificate of Incorporation having been satisfied with the documents submitted. A Limited Partnership effectively comes into existence on the date shown on its Certificate of Incorporation;</li>
<li>Authorized capital requirements: No minimum capital requirements, however, the standard authorized capital is CAD 1,000 which may be contributed as property but not services.</li>
</ul>
Financial statements and Reporting obligations
Each Canadian LP must keep appropriate accounting records, and prepare a Financial Statement annually.
Restrictions: Canadian LPs are not regarded as resident for tax purposes in Canada, and therefore are not entitled to take advantage of Double Tax treaties concluded by Canada with other countries.
Reporting Obligations: whilst there are no filing requirements for non-resident partners in Canada, each partner must ensure that any profits received from the LP are disclosed in his or her place of residence in line with the Common Reporting Standards regime as well as, FATCA, should US Indicia be present.
FATCA, IGA’s and Common Reporting Standard (CRS)
Canada and more than 100 countries have signed an IGA with the USA to implement FATCA in domestic legislation, and have committed to implement the Common Reporting Standard (CRS). CRS is resulting in automatic exchange of information between all CRS Participating Jurisdictions on financial accounts held by tax residents in CRS participating jurisdictions. Automatic exchange of information by September 2017; late adopter countries will start CRS per 1 January 2017 with first automatic information exchange by September 2018.
A Canadian LP is considered an entity for CRS purposes. Based on activities and the residence of its partners, the tax residence of the LP needs to be determined in order to identify the applicable CRS jurisdiction. Subsequently, depending upon the CRS Classification, this may require the Canadian LP either to report its account holders (debt and equity owners) to local tax authorities or may require to disclose its controlling persons to banking and other Financial Institutions where it holds an account.
Place of Effective Management (“POEM”) of a Canadian LP
Co-ordination by Amicorp Barbados in setting up the Canadian LP is not determinative that the Canadian LP’s POEM is Barbados. Common law suggests that the POEM of a Canadian LP would typically be deemed to be:
<ul>
<li>Where the GP resides; and</li>
<li>Where business decisions are usually taken. Therefore, as stated above the GP of a Canadian LP must be resident in a non-black listed jurisdiction.</li>
</ul>
Be cognizant of where the LP resides and evaluate the facts, on a case by case basis based on the structure and business activities of the LP.
The Canadian LP and Mexican Clients
We recognize that the establishment of a Canadian LP in the province of Ontario is preferred for our Mexican clients. Currently, any Canadian LP established in the province of Ontario will have its registered address at a Law Firm based in Ontario. Moreover, it is the preference to appoint a Mexican Company as the General Partner.
As mentioned above, because a Canadian LP is an entity without legal or tax personality, it has fiscal transparency for Mexican tax purposes. Thus, a Mexican resident shall consider as its own, the income acquired by the Canadian LP in the same taxable year in which the income is generated, and shall include said income in their annual tax return.
<ul>
<li>There might be no reporting obligations by the UBO in the structure if the General Partner is a Mexican Company and holds the control effect.</li>
<li>Where there is a tax withholding at the source of the investment that was carried out on behalf of the investor (e.g. the Limited Partner who provides a direct investment to the Canadian LP), the withheld tax could be credited by the investor in their annual tax return.</li>
<li>No minimum value or limited choice of assets</li>
</ul>
Further benefits for Mexican clients:
<ul>
<li>Under Mexican income tax law a Canadian LP is an entity without legal or tax personality, therefore it has fiscal transparency for Mexican tax purposes. Thus, a Mexican resident shall consider as its own, the income acquired by the Canadian LP in the same taxable year in which the income is generated, and shall include said income in their annual tax return;</li>
<li>There might be no reporting obligations by the UBO in the structure if the General Partner is a Mexican Company and holds the control effect;</li>
<li>The Canadian LP allows for tax deferral. Tax will be triggered once the beneficiaries receive the assets/money;</li>
<li>Gift tax is not applicable for Mexican residents;</li>
<li>In the case of certain types of assets, the investor could access a reduce interest rate in Mexico (as if they were held under personal title);</li>
<li>No minimum value or limited choice of assets</li>
</ul>
POEM and Mexican Clients
Mexican tax law does not give any guidance as to the interpretation of tax residency of foreign entities when those entities do not have their effective place of management in Mexico.
<hr>
<div>
For further information, please contact:
<div>
<h3>Careen A. Byfield Leyshon</h3>
Managing Director – Amicorp (Barbados) Ltd. 
+1 246 228 5363 
<a href="mailto:c.leyshon@amicorp.com">c.leyshon@amicorp.com</a></div>
</div>
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<guid>http://www.amicorp.com/AmiNews/2017/january/mexican-tax-incentive-for-capital-repatriation-2017.php</guid>
<title>Mexican tax incentive for capital repatriation 2017</title>
<link>http://www.amicorp.com/AmiNews/2017/january/mexican-tax-incentive-for-capital-repatriation-2017.php</link>
<pubDate>26 Jan 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2017/january/mexican-tax-incentive-for-capital-repatriation-2017.jpg" height="120" width="500" />As part of a joint action by the Federal Government, the business sector, trade unions, and primary sector organization to support the economy of Mexican families, an Agreement for the Economic Strengthening and Protection of the Family Economy was signed on January 9, 2017]]></description>
<content:encoded>
<![CDATA[ <h2>Mexican tax incentive for capital repatriation 2017</h2>
As part of a joint action by the Federal Government, the business sector, trade unions, and primary sector organization to support the economy of Mexican families, an Agreement for the Economic Strengthening and Protection of the Family Economy was signed on January 9, 2017
One of the actions mentioned in the agreement was to grant a tax incentive to promote capital repatriation of foreign assets kept outside of Mexico up to December 2016, with the purpose of boosting investments in the country. 
As a result of this agreement, on January 18th, 2017 a Decree for repatriation of funds maintained outside Mexico by Mexican companies, individuals and permanent establishments in Mexico (the “Decree”), was published in the Federal Official Gazette.
THE FOLLOWING IS A SUMMARY OF THE CONTENT OF THE KEY ASPECTS OF THE DECREE:
<ul>
<li>(i) Allows individuals, entities and permanent establishments in Mexico who directly or indirectly obtained and/or hold income abroad as of December 31, 2016, to comply with their income tax obligations applying a lower income tax rate of 8% with respect to the total amounts repatriated in to Mexico, without any deduction. 
Therefore, this fiscal ease could also be applied if foreign assets of the Mexican companies, individuals and permanent establishments in Mexico are held by a foreign structure (Trust, Investment Funds, etc.)</li>
<li>(ii) The applicable exchange rate for the calculation of the 8% tax rate will be the official exchange rate of the date in which the tax is paid.</li>
<li>(iii) Allows taxpayers to claim foreign tax credits, the foreign tax credit shall not surpass the amount that results from applying the 8% tax rate to the total amount of the repatriated funds.</li>
<li>(iv) Compliance tax obligations related to the repatriated resources (payment of the income and filing of informative tax returns) will be considered as complied with. Therefore, taxpayers will avoid incurring in tax penalties and surcharges.</li>
<li>(v) The resources should be repatriated during the following six months from the date of entry into force of the Decree, thus from January 19, 2017 until July 19, 2017.</li>
</ul>
INDIVIDUALS, ENTITIES OR INCOME EXCLUDED FROM THE DECREE BENEFITS:
<ul>
<li>When the Tax Administration Service (SAT) has exercised a tax audit concerning the resources subject to repatriation prior to the application of the Decree;</li>
<li>If the individuals or entities have filed a judicial or administrative action related to the resources subject to repatriation. In such a case, the individual or entity could desist its action to apply the Decree benefits;</li>
<li>If the income received abroad originates from illegal activities or is used to finance such; and</li>
<li>If the income to be repatriated has been previously deducted in Mexico.</li>
</ul>
REPATRIATION PROCESS: 
The resources should be repatriated into Mexico through Mexican financial institutions and taxpayers using the tax incentive would have to pay the corresponding tax within 15 days from the repatriation of funds. 
Entities and permanent establishment in Mexico would be required to invest repatriated resources in:
<ul>
<li>(i) Fixed assets or real estate located in Mexico for commercial purposes and must not be sold or transferred for a minimum of two years after their acquisition.</li>
<li>(ii) Research and development for scientific or technological purposes for their business.</li>
<li>(iii) Repayment of loans to independent parties. Such payments have to be made through Mexican financial institutions or Mexican broker dealers. Moreover, it is important to point out that repatriation payments can be made in any currency, however, for some foreign currency accounts located in Mexico, the currency must be the US dollar and these accounts may be held only by companies and not individuals. Also, these repayments include payment of contributions, as well as salaries paid to employees that render their services within the Mexican territory.</li>
<li>(iv) Investments in Mexico through Mexican Financial Institutions or Mexican Broker Dealers for a minimum of two years.</li>
</ul>
Individuals must invest the repatriated resources in Mexico under any of the alternatives above mentioned excluding repayment of loans or contributions or in financial instruments issued by Mexican residents through Mexican financial institutions or in shares issued by Mexican companies resident in Mexico. 
Keep in mind that under alternatives (i), (ii) or (iv) listed above, in order to apply to this benefit, the repatriated resources must remain in Mexico for at least 2 years.
We consider some Mexican residents will be interested in this new repatriation scheme because unlike the repatriation scheme for 2016, this year the tax program grants the tax incentive to apply a lower tax rate (8%, instead of 30% or 35%) of the repatriated amounts.
Remember that as from August 15th 2016, Mexican residents with investments in countries listed in the Mexican Black list (regardless if such blacklisted jurisdictions have a Broad Exchange of Information Agreement in place with Mexico or not) have to file the Informative Tax Return as of Fiscal Year 2016 to report the income generated by such legal entity or vehicles no later than February 28, 2017.
As a result, if they report an income they will have to file the corresponding Annual Tax Return of Fiscal Year 2016 and pay an income tax rate of 30% if the taxpayer is a corporation or 35% if the taxpayer is an individual. The Annual Tax Return has to be filed no later than March 31 for corporations, or on April 30 for individuals.
If taxpayers apply the advantages of the Decree they will benefit of a lower tax rate, no penalties and although it is not explicitly mentioned on the Decree, an indirect benefit of such would be the elimination of any criminal liability arising from the noncompliance with the filing of informative tax returns.
We strongly advise clients together with their tax advisors and in collaboration with Amicorp to re-evaluate their current structures, how they have been using these structures and whether application of this tax benefit is recommended.
AMICORP CAN ASSIST CLIENTS OR THEIR TAX ADVISORS WITH THE FOLLOWING:
<ul>
<li>Request of all relevant data such as relevant bank data or other documents (documents of trusts, foundations, companies, funds);</li>
<li>Processing of all relevant data (such as list of assets, incoming and outgoing payments in order to check the source of funds, etc.) in close cooperation with the local partner;</li>
<li>Arranging the legal certification procedure and the issuance of apostils, if required; and</li>
<li>Support the clients, together with their tax advisors, in restructuring and optimizing any offshore vehicles after repatriation.</li>
</ul>
For any clarification related to this matter please contact your account manager, Amicorp Mexico or the Private Clients Unit which can analyze case by case, in order to provide a potential solution together with the tax advisor.
<hr>
<div> For further information, please contact:
<div>
<h3>Juan Pablo Demichelis</h3>
Director - Cross Border Transactions Structuring 
+52 55 5202 5999 
<a href="mailto:j.demichelis@amicorp.com">j.demichelis@amicorp.com</a>
<hr>
</div>
<div>
<h3>Geralda Kral-Buckley</h3>
Global Head – Private Clients 
+41 44 252 08 80 
<a href="mailto:g.buckley@amicorp.com">g.buckley@amicorp.com</a>
</div>
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<guid>http://www.amicorp.com/AmiNews/2017/january/chinas-new-foreign-investment-law.php</guid>
<title>Solving the difficulties which arise out of China’s New Foreign Investment Law</title>
<link>http://www.amicorp.com/AmiNews/2017/january/chinas-new-foreign-investment-law.php</link>
<pubDate>23 Jan 2017 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2017/january/chinas-new-foreign-investment-law.jpg" alt="2017/january/chinas-new-foreign-investment-law.php">
On October 1, 2016 China changed its system for government control over foreign investment. The change was accomplished by revising the statutes concerning wholly foreign owned entities (WFOEs), equity joint ventures and contractual joint ventures and by promulgating a new basic regulation governing registration of foreign invested entities (FIEs).]]></description>
<content:encoded>
<![CDATA[ <h2>Solving the difficulties which arise out of China’s New Foreign Investment Law</h2>
On October 1, 2016 China changed its system for government control over foreign investment. The change was accomplished by revising the statutes concerning wholly foreign owned entities (WFOEs), equity joint ventures and contractual joint ventures and by promulgating a new basic regulation governing registration of foreign invested entities (FIEs).
China’s new Foreign Invested Enterprise (FIE) online filing registration is used by the foreign investor to state who will be the actual controlling person of the foreign invested entity. The online form defines this person as ether (1) the person or persons who collectively have 50% ownership in the foreign investor that will establish the FIE, or (2) the persons who actually control the foreign investor through means other than ownership, such as contractual control over the foreign investor’s decision making body.
In modern corporation ownership and management it can be difficult to answer this seemingly simple question, given the complex structures for non-public companies that are intentionally structured to ensure that no single individual has actual control.
The ownership structure can involve individuals, trusts, funds, private equity, limited partnerships, etc. However, the new online form only allows for one response: either the controlling person is an individual or group of individuals, or the controlling person is a public corporation, and can only be categorized in the following way:
<ul>
<li>Foreign Listed Company</li>
<li>Foreign Natural Person</li>
<li>Foreign Government Agency</li>
<li>International Organization</li>
<li>Domestic Listed Company</li>
<li>Domestic Natural Person</li>
<li>SOE/Collective</li>
</ul>
No private business entity of any kind is listed in the categories. Therefore, all individuals who control the enterprise will have to be recorded. Where an entity is one of the owners, the ownership of the entity will also have to be reported. Only natural persons or the name of a public company can be provided.
The reason for this change? China does not want the identity of the actual owners of entities to be hidden any longer, and particularly China wishes to identify those engaged in round trip investments.
Additional new requirements make the new system both time consuming and difficult to comply with, and the whole process of registering a wholly foreign owned entities became much more difficult.
However, Amicorp’s Shanghai office is ready to assist you with this process and other services. We offer a number of services to foreign clients for their PR China investments based on the new compliance:
<ol type="1">
<li>PRC company setup / registration</li>
<li>Actual control people filling</li>
<li>Annual compliance services</li>
<li>Accounting and tax filling services</li>
<li>Trademark registration in China</li>
</ol>
Why a listing on the DCSX in Curaçao can help in this new environment
For (fast growing) Chinese companies seeking to raise capital, an IPO in Europe can be a superior route to funding growth. CEO’s from Chinese companies with an overseas listing experience various benefits, such as gaining high quality recognition, foreign currency share price denomination as M&A currency, higher valuation and less underpricing and a more diversified (institutional) investor base. Listing in Curaçao on the Dutch Caribbean Securities Exchange (“DCSX”) adds additional advantages like a faster listing and approval process and the possibility to become a shareholder of the DCSX. Amicorp has access to the leading listing advisor and broker for the DCSX in Curaçao. Please feel free to contact us in order to explore if a listed on the DCSX would be a good feasible opportunity for your company.
<hr>
<div>
For further information, please contact:
<div><h3>Brian Elders</h3>Sales Director Amicorp Hong Kong Limited <a href="mailto:b.elders@amicorp.com">b.elders@amicorp.com</a><hr></div>
<div><h3>Zhixing Shao</h3> Director Sales Amicorp (Shanghai) Consultants Ltd. <a href="mailto:z.shao@amicorp.com">z.shao@amicorp.com</a></div>
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<guid>http://www.amicorp.com/AmiNews/2016/december/Revised-DTA-between-Cyprus-and-India.php</guid>
<title>Revised DTA between Cyprus and India: structuring your inbound investments through Cyprus</title>
<link>http://www.amicorp.com/AmiNews/2016/december/Revised-DTA-between-Cyprus-and-India.php</link>
<pubDate>08 Dec 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2016/december/Revised-DTA-between-Cyprus-and-India.jpg" alt="2016/december/Revised-DTA-between-Cyprus-and-India">
On 18th November 2016 a revised agreement between Cyprus and India for the avoidance of double taxation (DTA) was signed which will replace the existing DTA that was signed by the two countries in June 1994.]]></description>
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<![CDATA[ <h2>Revised DTA between Cyprus and India: structuring your inbound investments through Cyprus</h2>
On 18th November 2016 a revised agreement between Cyprus and India for the avoidance of double taxation (DTA) was signed which will replace the existing DTA that was signed by the two countries in June 1994.
Provisions of the new DTA will enter into force once the ratification procedures on both sides are completed, and according to the recent press release issued by the Indian authorities, the revised DTA is expected to come into effect in India as of 1st April 2017. The key highlights from the announcements of the Indian and Cyprus authorities are outlined below.
Key Highlights:
There are 3 routes to becoming an ICON:
<ul>
<li>De-classification of Cyprus as NJA: Indian authorities shall proceed with retrospectively rescinding the classification of Cyprus as ‘Notified Jurisdictional Area’ (NJA) as from 1st November 2013.</li>
<li>Source-based taxation on capital gains on shares acquired on or after 1st April 2017: Capital gains arising from the sale of shares acquired on or after 1st April 2017 shall be taxable in India. However, capital gains on the sale of shares acquired prior to 1st April 2017 shall be grandfathered and taxed in Cyprus. This source-based taxation shall be applicable for shares of an Indian resident company or shares of a company whose property consists of immovable property in India.</li>
<li>Reduction of WHT on Royalty: Royalty payments to a Cyprus resident shall be subject to 10% withholding tax in India. The rate currently is 15%.</li>
</ul>
The de-classification of Cyprus as NJA following the revision of the DTA paves the way for more cooperation and opportunities between Cyprus and India. The amendment from resident-based to source-based taxation of capital gains also follows the recent changes made in the DTA between India and Mauritius. The grandfathering of investments made prior to 1st April 2017 should add further certainty for both existing and future structures and investments in India via Cyprus.
At Amicorp we can assist you with your structuring requirements for inbound investments through Cyprus
 
<img src="http://www.amicorp.com/AmiNews/2016/december/chart.jpg" alt="chart"> 
 
HoldCo:
<ul>
<li>Dividends from India shall be tax exempt in Cyprus. There is a 10% WHT on dividends in India according to the DTA, however this WHT is currently not imposed by the Indian authorities.</li>
<li>No WHT in Cyprus on dividends to Investor.</li>
<li>Capital gains on sale of Investments shall be tax exempt only for those Investments made prior to 1st April 2017 under grandfathering. Capital gains on Investments made on or after 1st April 2017 shall be subject to tax in India.</li>
</ul>
FinCo:
<ul>
<li>Interest income shall be subject to 10% WHT in India.</li>
<li>Notional Interest Deduction (NID)* in Cyprus can reduce taxable interest income from 12.5% to 2.5%, with net effect 0% tax payable in Cyprus through credit received for 10% WHT in India.</li>
<li>No WHT in Cyprus on dividends to Investor.</li>
<li>If financing done through CCDs, sale of the same shall not attract capital gains tax in India.</li>
</ul>
* Two-tier structures holding assets other than immovable property situated in India, would still take advantage of the capital gains tax applicable in Cyprus, which would be 0% for any type of securities.
* Notional Interest Deduction (NID): This applies as a deemed interest expense on newly injected capital and can reduce the effective tax rate to 2.5%. NID is calculated by multiplying a ‘reference interest rate’ on the new capital issued by the company. The reference interest rate is the 10-year government bond rate of the State the capital is invested in, plus 3%. However, this cannot be less than the 10-year Cyprus government bond increased by 3%. The allowable deemed expense cannot exceed 80% of the taxable income of the company. In case of a tax loss, no expense can be claimed.
Further assistance from Amicorp
Amicorp Cyprus is available to assist with any queries you might have and help you explore the opportunities that may arise for your business as a result of the revised DTA between Cyprus and India. Amicorp can assist in the set-up and on-going maintenance of Cyprus entities and provide global solutions through its worldwide expertise and presence in more than 30 countries.
<hr>
<div>
For further information, please contact:
<div>
<h3>Alexandros Gavrielides</h3>
Director Sales 
Amicorp (Cyprus) Ltd 
<a href="mailto:a.gavrielides@amicorp.com">a.gavrielides@amicorp.com</a>
<hr>
</div>
<div>
<h3>Elia Nicolaou</h3>
Managing Director 
Amicorp (Cyprus) Ltd 
<a href="mailto:e.nicolaou@amicorp.com">e.nicolaou@amicorp.com</a></div>
</div>
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<guid>http://www.amicorp.com/AmiNews/2016/december/Amicorp-offers-bahamian-ICON-funds.php</guid>
<title>Amicorp offers Bahamian ICON Funds</title>
<link>http://www.amicorp.com/AmiNews/2016/december/Amicorp-offers-bahamian-ICON-funds.php</link>
<pubDate>06 Dec 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2016/december/Amicorp-offers-bahamian-ICON-funds.jpg" alt="2016/december/Amicorp-offers-bahamian-ICON-funds">At Amicorp we have been successfully offering retirement and estate planning portfolio solutions to our clients who want a simpler and more cost efficient product. We see that some clients have become uneasy with “offshore” solutions and structures (Panama leaks and Bahamas leaks), and are instead increasingly interested in investing their wealth in a retirement fund, which provides most of the tax deferral and succession planning advantages that most offshore structures do.]]></description>
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<![CDATA[ <h2>Amicorp offers Bahamian ICON Funds</h2>
An ideal cost efficient private label fund solution for Latin American clients
Amicorp has established a number of Bahamian ICON funds for various Brazilian and Mexican clients. ICON funds are cost efficient and ideal private label funds for all types of clients.
The ICON is the newest and most-ground breaking example of The Bahamas’ market-sensitivity and regulatory responsiveness. Although not limited to use by investors and fund managers from any one country, this new vehicle was created and tailored on the basis of Brazilian fund regulations and industry practices. The condominium has been a part of the Brazilian civil code for nearly a century and all of Brazil’s approximately 13,000 funds are organized as condominiums.
The ICON is a contractual relationship subsisting between one or more investors (called participants) under which the investors agree to pool assets for the purpose of investing those assets as a collective. The structure is then licensed and fully regulated as an investment fund.
Similar to the Brazilian condominium, the ICON possesses no distinct legal personality except that for the purpose of the legislation it is able to hold assets in its name; enter into agreements into its name; and sue or be sued in its name. The lack of legal personality is addressed by the appointment of a governing administrator that is empowered to transact in its name, and represent and bind the ICON.
The ICON is established upon the terms and conditions, and with the rights and powers, subject to any limitations, empowered to borrow and lend money and give security over its assets as provided under the ICON’s governing regulations and Bahamian law.
Establishing an ICON
There are 3 routes to becoming an ICON:
<ul>
<li>Establish an ICON, and then license it as an investment fund.</li>
<li>Convert an existing Bahamian IBC, exempted limited partnership, or unit trust into an ICON, and then license it as an investment fund.</li>
<li>Re-domicile a foreign company or partnership to its Bahamian counterpart, convert the entity into an ICON, or in the case of a foreign trust change its governing law to that of The Bahamas, and convert it into an ICON, and then license it as an investment fund.</li>
</ul>
An ICON is established upon the execution of its governing regulations by one or more initial participants. The establishment of an ICON is evidenced by the certificate of establishment, signed by the governing administrator. The certificate of establishment together with the prescribed fee is submitted to the Registrar of Companies within seven days of the date of establishment. Upon receipt of the certificate of establishment and the prescribed fee, the Registrar shall enter the name of the ICON in the register.
Legal Form
Investment funds may be set up as a company, partnership, unit trust, investment condominium, or other similar body formed and organized under the laws of The Bahamas. Bahamian law also allows for multiple portfolios to be operated under one legal structure while avoiding cross liability between them. This eliminates the need for separate legal structures and make it well-suited to for instance for umbrella funds.
<table border="1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="100%" valign="top"><h3>The Securities Commission has pre-approved seven templates, with six templates currently in use:</h3>
SMART FUND 001: a fund for discretionarily managed accounts of Bahamian institutions
SMART FUND 002: an incubator fund with a maximum of ten professional investors
SMART FUND 004: a private investment company with a maximum of five investors
SMART FUND 005: a private investment fund with a maximum of five professional investors
SMART FUND 006: a side pocket fund where illiquid assets from an existing identified investment fund can be transferred into, provided however that no more than 30% of the gross assets of the existing identified investment fund are invested in the SMART fund
SMART FUND 007: also known as the Super Qualified Investment Fund. 007 represents the lion share of all new Bahamian fund launches over the past two years. Over such a short period of time, it has come to represent nearly 10% of all SMART funds licensed in the jurisdiction, according to data released by the Securities Commission. 007 serves as a regulatory wrapper for structuring private placement funds open to no more than 50 investors, each of whom is required to make a minimum initial investment of USD 500,000 or its equivalent. What sets the 007 apart, other than the expanded investor pool, from the other SMART funds, is that the director of the fund choose the appointment and location of the fund administrator, similar to the appointment of any other service provider.
Closed-ended funds are outside of the scope of regulation.</td>
</tr>
</tbody>
</table>
 
Conversion of existing fund structure to an ICON
The Bahamian ICON legislation allows for the conversion of an existing Bahamian IBC, exempted limited partnership, or unit trust into an ICON and then license it as an investment fund.
To effect the conversion, all of the directors and majority of voting shareholders, all of the general partners and majority of voting limited partners or the trustee and majority of the voting unit holders, as the case may be, must prepare and approve the Articles of Conversion which must include, inter alia, the following provisions:
<ul>
<li>provisions detailing the basis upon which equity interests shall be converted to participation interests in the ICON along with details of any rights attaching thereto;</li>
<li>provisions for the valuation and accounting treatment of the assets and liabilities and any retained earnings upon conversion;</li>
<li>the date of incorporation, continuation, registration or establishment, as the case may be, and intended date for conversion to an ICON ; and</li>
<li>an annexed copy of the Governing Regulations.</li>
</ul>
Once the Articles of Conversion have been approved, the Administrator must prepare and submit to the Registrar General’s Department within 7 days the Certificate of Conversion along with the requisite fee. The RG will enter the name of the ICON on the register and then stamp the Certificate of Conversion.
At the date of conversion, all of the assets and liabilities of the existing Bahamian structure will be vested in the ICON and the existing Bahamian structure will be struck to the register and will cease to exist without being dissolved or wound-up, as the case may be. All of the equity interests of the structure will be converted into participation interests in accordance with the Articles of Conversion. Participants remain liable for any amount unpaid on any equity interest incurred prior to conversion.
The provisions relating to licensing apply to a converted ICON as they do to a newly established ICON. It is important to note that conversion does not relieve officers, directors, trustees or partners from liability nor does it extinguish any debt or liability of the entity/UT prior to conversion.
For foreign entities, the normal route for re-domiciling the foreign company, exempted limited partnership, or unit trust to a Bahamian company, Bahamian exempted limited partnership, or Bahamian trust and then converting the Bahamian structure into an ICON as provided above.
In relation to foreign companies and exempted limited partnerships, the caveat is that the foreign law and constitutional documents of the company or partnership must allow for the re-domiciliation of the entity. With respect to foreign trusts, the trust instrument must include powers to (i) change the governing law of the trust to that of The Bahamas; and (ii) vary the provisions of the trust.
Administrators
The initial participants must appoint a governing administrator and a general administrator which roles may be filled by a single entity or separate entities.
The governing administrator shall have the authority to bind the ICON and the acts of the governing administrator as the case may be shall so bind the ICON unless such governing administrator acting has in fact no authority to act in the particular matter, and the person with whom it is dealing knows or reasonably ought to know that it has no authority.
<ul>
<li>Amicorp Bahamas Management Limited is licensed to act as governing administrator of an ICON.</li>
<li>Amicorp Fund Services N.V. is licensed to act as general administrator of an ICON.</li>
</ul>
Record Keeping
The governing administrator of the ICON is required to keep at its office:
<ul>
<li>a copy of its governing regulations and all amendments thereto; and</li>
<li>a register of participant interests.</li>
</ul>
The governing administrator must also ensure that reliable accounting records are kept in relation to all sums of money received and expended for and on account of the ICON and the matter in respect of which such receipt and expenditure takes place, inclusive of all sales, purchases and other transaction and the assets and liabilities of the ICON. All records that are to be maintained shall be kept for a minimum period of five (5) years.
Tax and Exchange Control Exemptions
Funds and non-Bahamian investors are exempted from all tax levied by Bahamian authorities. The ICON is exempt from paying any business license tax, any tax on income or distributions accruing to or derived from such ICON or in connection with any transaction to which that ICON or participant is a party. Further, the ICON is exempt from estate, inheritance, succession or gift tax rate, duty, levy, or other charge payable in The Bahamas with respect to any participation interest. The profits paid to investors will, of course, remain subject to tax in the hands of the investors.
The Bahamas: A Jurisdiction of Choice
The Bahamas is ideally positioned as a leading international financial center, with the existence of a highly skilled professional talent pool, legislation conducive to business, a risk based regulatory environment, and systems for the prevention and detection of money laundering and financing of terrorism. The depth and quality of financial services institutions is complemented by the provision of a tax neutral platform for all business activity. The Bahamas is listed on the white list of the OECD and is a FATF-recognized jurisdiction with respect to KYC/AML/FATF standards.
Amicorp Bahamas
Amicorp has its own office in Nassau, The Bahamas. Amicorp Bahamas Management Limited is the premier provider of corporate services to international clients. We are devoted to providing high-class service to our clients and demonstrating our unwavering commitment to efficiency and reliability, developing a longstanding relationship with our clients predicated on trust and confidence.
<hr>
<div>For further information, please contact:
<div>
<h3>Marvin Taylor</h3>
Managing Director 
Amicorp Bahamas Management Limited 
+1 242 603 5575/6 
<a href="mailto:m.taylor@amicorp.com">m.taylor@amicorp.com</a>
<hr>
</div>
<div>
<h3>Geralda Kral-Buckley</h3>
Global Head – Private Clients 
+41 44 252 08 80 
<a href="mailto:g.buckley@amicorp.com">g.buckley@amicorp.com</a>
<hr>
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<guid>http://www.amicorp.com/AmiNews/2016/december/amicorp_retirement_portfolio_solutions.php</guid>
<title>Amicorp’s Retirement Portfolio solutions. Managing your retirement portfolio for estate planning purposes</title>
<link>http://www.amicorp.com/AmiNews/2016/december/amicorp_retirement_portfolio_solutions.php</link>
<pubDate>01 Dec 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2016/december/amicorp_retirement_portfolio_solutions.jpg" alt="2016/december/amicorp_retirement_portfolio_solutions"/>
At Amicorp we have been successfully offering retirement and estate planning portfolio solutions to our clients who want a simpler and more cost efficient product. We see that some clients have become uneasy with “offshore” solutions and structures (Panama leaks and Bahamas leaks), and are instead increasingly interested in investing their wealth in a retirement fund, which provides most of the tax deferral and succession planning advantages that most offshore structures do.]]></description>
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<![CDATA[ <h2>Amicorp’s Retirement Portfolio solutions. Managing your retirement portfolio for estate planning purposes</h2>
At Amicorp we have been successfully offering retirement and estate planning portfolio solutions to our clients who want a simpler and more cost efficient product. We see that some clients have become uneasy with “offshore” solutions and structures (Panama leaks and Bahamas leaks), and are instead increasingly interested in investing their wealth in a retirement fund, which provides most of the tax deferral and succession planning advantages that most offshore structures do.
We work with a leading independent provider of specialty insurance which offers this “onshore” solution from Puerto Rico for high net worth clients and business owners. Since Puerto Rico is a U.S. territory, there are no FATCA or CRS reporting requirements, which also makes the solution more cost-effective, and much simpler to establish and manage than, for instance, International Business Companies with a separate custodian bank and External Asset Manager. One annual fee covers the insurance policy, the custodian bank, and the asset manager.
We recognize the need for a retirement solution for business owners who wish to transition their lives from active pursuit of capital growth to passive receipt of accumulated income. Our solution is an innovative Retirement Savings Plan that provides for both income in the latter part of life and efficient transfer of wealth to future generations of family members. Premiums should be between USD 1 million and USD 5 million.
Key benefits
This is a highly standardized and therefore cost efficient product with limited investment choices (4 fund profiles), with asset protection as a result of a segregated cell structure and therefore suitable for clients with assets between USD 1 -5 million.
Clients will be charged a one-time establishment fee and an annual maintenance fee, and will not have to pay separately for asset management or custodian fees.
Separate Retirement Funds can be set-up for specific intermediaries / clients, who wish to bring in a portfolio of clients (though a minimum combined asset base would be required).
<table border="1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="189" valign="top">Premium in USD</td>
<td width="189" valign="top">Establishment fee</td>
<td width="189" valign="top">Annual maintenance</td>
</tr>
<tr>
<td width="189" valign="top">1,000,000 – 2,499,999</td>
<td width="189" valign="top">0.90%</td>
<td width="189" valign="top">1.500%</td>
</tr>
<tr>
<td width="189" valign="top">2,500,000 – 5,000,000</td>
<td width="189" valign="top">0.80%</td>
<td width="189" valign="top">1.200%</td>
</tr>
</tbody>
</table>
 
And for greater asset protection and diversity of assets
If even greater asset protection is the key motivating factor, combined with the inclusions of different asset classes (marketable securities such as stocks, bonds and funds, but also alternative investments such as private equity and operating companies), flexible death coverage and asset protection due to a segregated cell structure, we also have the solution for you. Again, our pricing is a simple fixed annual fee.
<hr>
<div>For further information, please contact:
<div>
<h3>Geralda Kral-Buckley</h3>
Global Head – Private Clients 
+41 44 252 08 80 
<a href="mailto:g.buckley@amicorp.com">g.buckley@amicorp.com</a>
<hr>
</div>
<div>
<h3>Pablo Sandonato</h3>
Manager – Business Development 
+41 44 252 08 80 
<a href="mailto:p.sandonato@amicorp.com">p.sandonato@amicorp.com</a>
<hr>
</div>
<div>
<h3>Hanno de Vriend</h3>
Global Head - BPO 
+34 932 082 581 
<a href="mailto:h.devriend@amicorp.com">h.devriend@amicorp.com</a>
<hr>
</div>
<div>
<h3>Gijsbert van Doorn</h3>
Managing Director - Amicorp Insurance 
+31 6 1213 0548 
<a href="mailto:g.doorn@amicorpinsurance.com">g.doorn@amicorpinsurance.com</a></div>
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<guid>http://www.amicorp.com/AmiNews/2016/november/ACF-deepens-its-social-impact-in-desa-les.php</guid>
<title>ACF deepens its social impact in Desa Les with a hospitality skills training center</title>
<link>http://www.amicorp.com/AmiNews/2016/november/ACF-deepens-its-social-impact-in-desa-les.php</link>
<pubDate>04 Nov 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2016/november/ACF-deepens-its-social-impact-in-desa-les.jpg" height="120" width="500" />Amicorp Community Foundation (ACF) forges on with plans to deepen its positive impact in Desa Les and to help turn dreams of a better life into a reality for many who live there. The game-changing training center will deliver hospitality education and skills-building that will contribute to the building of an inclusive economy, and ensuring that those at the bottom of the pyramid can have a stake in.]]></description>
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<![CDATA[ <h2>Amicorp Community Foundation (ACF) forges on with plans to deepen its positive impact in Desa Les and to help turn dreams of a better life into a reality for many who live there. The game-changing training center will deliver hospitality education and skills-building that will contribute to the building of an inclusive economy, and ensuring that those at the bottom of the pyramid can have a stake in.</h2>
In 2014, ACF started the process of setting up the Amicorp Community Centre (ACC), a hospitality skills center in Les. In phase one of the project, the center will deliver training in life skills, and food and beverage and culinary skills, as well as permaculture and Balinese dance and music.
ACC will prepare young people (aged 15 - 24) from low or no income families to take advantage of employment from the influx of hotels expected to be established in the area as the government further invests in infrastructure in the region. In the first two years, the center will take in 100 students per year, mostly from the community, and in subsequent years, up to 300 from across Bali and beyond. Employment in the much sought after cruise industry is also anticipated.
Our architect has designed an innovative building which will impress many, especially students of architecture. This flagship center will feature a rooftop herb garden above an inspiring building consisting of a training kitchen and restaurant, meeting spaces and classrooms, connected by its central pavilion, all offering sweeping views of the verdant permaculture. It fully embraces our belief in sustainability. Mirroring the culture and values of the Amicorp Community Foundation that in turn mirror those of the parent Amicorp Group, the ACC will inculcate the attitude of “standing out from the crowd” by emphasizing on goal setting, perseverance and finishing projects successfully, delivering outcomes that demonstrate quality, creativity and sustainability.
This vocational training center expresses the change that ACF seeks to make towards a more sustainable world by adopting the quadruple bottom line approach, with equal emphasis on values of people, planet, profit and passion. The ACC personifies this with its positioning as a social enterprise that generates revenue without compromising our promise to deliver quality training to the needy. It further personifies this with its donation-generating international volunteer programs, whereby corporate and individual donors and investors can mentor, and impart invaluable skills and expertise to our students in an ongoing basis with a combined program of both onsite presence as well as virtual communication.
Unlike other social impact foundations, ACF is involved from the beginning to the end of our projects – starting with the due diligence, project planning and implementation, funding, employment, building, maintenance, education, etc., until we are satisfied that we have completed the project and that going forward it is successfully embedded into and managed by the local community. ACF also differentiates itself from other foundations in how it uses funds received from non-Amicorp donors. Because ACF is privileged to receive 1% of Amicorp Group’s annual revenue, every dollar received from donors and social impact investors is directed towards our social projects, not to overheads or administration costs.
ABOUT AMICORP COMMUNITY FOUNDATION
Amicorp Community Foundation (ACF) was established in 2001 by Amicorp Group to drive social impact in a structured way. ACF is non-political and non-religious, and its twin goals are:
<ol type="1">
<li>eradicating poverty with a focus on inspiring and empowering marginalized communities with skills and education, and</li>
<li>raising environmental consciousness.</li>
</ol>
ACF hopes to inspire clients and partners to join in these goals.
TWO OF OUR PARTNERS
ACF has already acquired great knowledge partners supporting this project. One of these is the Locavore Restaurant, voted Asia’s top 50 restaurants in 2016 as well as Indonesia’s top restaurant, and the prestigious international hospitality brand W in Bali (part of Starwood Hotels and Resorts). “You have our full support on this important project.” Craig Seaward, General Manager, W Bali.
Today, ACF has social impact projects worldwide. These include:
<ul>
<li>Desa Les, Bali Indonesia: Amicorp Community Center - A game-changing center of inspiration delivering hospitality-skills training for marginalized communities</li>
<li>Curaçao: Tuma Mi Man – A day care center providing solid foundations for children from disadvantaged families</li>
<li>Chile: Carbon Offset Project – Tree planting to offset CO2 emissions from flying</li>
</ul>
We invite you, philanthropist, family or corporate to partner with us by adopting one of our projects, or let us assist you with setting up and managing social impact actions in meaningful, manageable and measurable ways.
TO MAKE A DONATION TOWARDS THE AMICORP COMMUNITY CENTER
If you would like to partner with ACF in this Community Center project, you may make a donation either by visiting our website ( <a href="http://www.amicorp.com/csr.php" target="_blank">http://www.amicorp.com/csr.php</a> ) or you can make a wire transfer to:
Amicorp Community Foundation 
PO Box 4914 Curaçao 
USD a/c: 8000000054299274 
Bank: RBC CURAÇAO 
Swift Code: RBTTCWCU
We have a dollar for dollar donation matching program and a naming rights program ongoing throughout 2016. We also welcome your enquiries about partnerships, so do reach out to us at <a href="mailto:csr@amicorp.com">csr@amicorp.com</a>
To find out more, please visit <a href="http://www.amicorp.es/csr" target="_blank">http://www.amicorp.es/csr</a> or contact our dedicated team at <a href="mailto:csr@amicorp.com">csr@amicorp.com</a>
<hr>
<div>
For further information, please contact:
<div>
<h3>William van Eijle</h3>
Director – Sustainable Development 
<a href="mailto:w.eijle@amicorp.com">w.eijle@amicorp.com</a>
<hr>
</div>
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<guid>http://www.amicorp.com/AmiNews/2016/october/ACF-completes-a-four-year-long-social-impact-project-in-Bali.php</guid>
<title>ACF completes a four-year long social impact project in Bali, Indonesia, lifting thousands to better lives.</title>
<link>http://www.amicorp.com/AmiNews/2016/october/ACF-completes-a-four-year-long-social-impact-project-in-Bali.php</link>
<pubDate>27 Oct 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2016/october/ACF-completes-a-four-year-long-social-impact-project-in-Bali.jpg" height="120" width="500" />In early 2016 we successfully completed our most important social impact project to date: the kamar mandi project. This has been a four-year long sanitation project where we helped to bring dignity, better health, hygiene, safety and economic empowerment to more than one third of the community of Desa Les in the north Bali regency of Buleleng.]]></description>
<content:encoded>
<![CDATA[ <h2>In early 2016 we successfully completed our most important social impact project to date: the kamar mandi project. This has been a four-year long sanitation project where we helped to bring dignity, better health, hygiene, safety and economic empowerment to more than one third of the community of Desa Les in the north Bali regency of Buleleng.</h2>
The project that cost ACF nearly USD 500,000 has brought some 725 families across eight out of nine hamlets of the Les village their own personal kamar mandi (bath outhouse with latrine and bathing facilities). Prior to having their own kamar mandis, these families, mostly households of four or more people, would either defecate in the open, or borrow their neighbors’ units. This would frequently cause sickness such as diarrhea and food and water contamination, hold-ups and long queues leading to loss of time for other pursuits, and shame and embarrassment leading to lack of self-confidence. For many in this community of 8,000 people, having their own kamar mandi means much more than words can describe. “We are grateful that we have brought relief to the community of Desa Les, where the largest numbers of the island’s most marginalized families subsist, and often on less than USD 2 a day”, said Toine Knipping, CEO of ACF.
To ensure that the beneficiaries receive the full benefit from their kamar mandis, ACF conducts ongoing training on maintenance of the units, and also organizes the international Community-Led Total Sanitation (CLTS) training together with the PUSKESMAS (community health department). Aside from the multiple long-term benefits that good sanitation practices bring, this project also created employment for 40 contractors in a community where very few jobs are available to unskilled people. Beneficiary families have also worked alongside the contractors, as this action forms part of ACF’s mission to impart values of collaboration and self-empowerment.
Throughout the project, the use of funds have been stringently controlled and accounted for, with 78.4% of the project cost spent on material, 20.58% on manpower and the balance on such miscellaneous costs as postage, transport, storage, etc. Unlike other social impact foundations, ACF is involved from the beginning to the end of our projects – starting with the due diligence, project planning and implementation, funding, employment, building, maintenance, education, etc., until we are satisfied that we have completed the project and that going forward it is successfully embedded into and managed by the local community. ACF also differentiates itself from other foundations in how it uses funds received from non-Amicorp donors. Because ACF is privileged to receive 1% of Amicorp Group’s annual revenue, every dollar received from donors and social impact investors are directed towards our social projects, not to overheads or administration costs.
If you would like to make a donation to ACF that will help bring further relief to our beneficiaries, please go to <a href="http://www.amicorp.com/csr" target="blank">http://www.amicorp.com/csr</a>
<img src="http://www.amicorp.com/AmiNews/2016/october/kamarmandi-book.jpg" alt="Kamar Mandi Book">
 
ABOUT AMICORP COMMUNITY FOUNDATION
For a donation towards the building fund of our hospitality skills training space in this area, you will receive a complimentary copy of this beautiful picture book depicting our beneficiaries, and daily life of this vibrant community, filled with age-old customs and traditions.
Amicorp Community Foundation (ACF) was established in 2001 by Amicorp Group to drive social impact in a structured way. ACF is non-political and non-religious, and its twin goals are:
<ol type="1">
<li>eradicating poverty with a focus on inspiring and empowering marginalized communities with skills and education, and</li>
<li>raising environmental consciousness.</li>
</ol>
ACF hopes to inspire clients and partners to join in these goals.
Today, ACF has social impact projects worldwide. These include:
<ul>
<li>Desa Les, Bali Indonesia: Amicorp Community Center - A game-changing center of inspiration delivering hospitality-skills training for marginalized communities</li>
<li>Curaçao: Tuma Mi Man – A day care center providing solid foundations for children from disadvantaged families</li>
<li>Chile: Carbon Offset Project – Tree planting to offset CO2 emissions from flying</li>
</ul>
We invite you, philanthropist, family or corporate to partner with us by adopting one of our projects, or let us assist you with setting up and managing social impact actions in meaningful, manageable and measurable ways.
To find out more, please visit <a href="http://www.amicorp.com/csr" target="_blank">http://www.amicorp.com/csr</a> or direct your enquiries to <a href="mailto:csr@amicorp.com">csr@amicorp.com</a>
<hr>
<div>
For further information, please contact:
<div>
<h3>William van Eijle</h3>
Director – Sustainable Development 
<a href="mailto:w.eijle@amicorp.com">w.eijle@amicorp.com</a>
<hr>
</div>
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<guid>http://www.amicorp.com/AmiNews/2016/september/voluntary-disclosure-programs.php</guid>
<title>Voluntary Disclosure Programs and how Amicorp can assist in their filing for your clients</title>
<link>http://www.amicorp.com/AmiNews/2016/september/voluntary-disclosure-programs.php</link>
<pubDate>09 Sep 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2016/september/voluntary-disclosure-programs.jpg" height="120" width="500" />Worldwide there are numerous Voluntary Disclosure Programs (VDP) in place. These are often also called a tax amnesty. In the era of Common Reporting Standards these are likely to be the last of the major voluntary disclosure and tax amnesty programs. At Amicorp we have a three phase process in place so that your clients with undeclared assets/income can take advantage of a voluntary disclosure program in the jurisdiction where they are tax resident. Amicorp is working with various tax/law firms specialized in filing a voluntary disclosure.]]></description>
<content:encoded>
<![CDATA[ <h2>Worldwide there are numerous Voluntary Disclosure Programs (VDP) in place. These are often also called a tax amnesty. In the era of Common Reporting Standards these are likely to be the last of the major voluntary disclosure and tax amnesty programs. At Amicorp we have a three phase process in place so that your clients with undeclared assets/income can take advantage of a voluntary disclosure program in the jurisdiction where they are tax resident. Amicorp is working with various tax/law firms specialized in filing a voluntary disclosure.</h2>
The Voluntary Disclosure Program (VDP) is a tax friendly regime and is the last opportunity for taxpayers (individuals and/or entities as the case may be) with undeclared assets or income to regularize them.
The VDPs’ offer low tax rates, low penalties and in most cases a full settlement of prosecution against potential tax crime.
There are 2 different kind of VDP, either a:
<ul>
<li>General Voluntary Disclosure Program (General VDP onwards), a permanent program, or</li>
<li>Special Voluntary Disclosure Program (Special VDP or Tax Amnesty onwards), a temporary initiative with better conditions than the general ones.</li>
</ul>
The VDPs in the countries indicated in the bullet points below are an excellent opportunity to regularize undeclared income and assets, avoiding criminal prosecution and publicity. This mitigates tax risks for your clients and will allow continuation of relationships with banks and providers.
It is essential to ensure that your clients’ structures are tax compliant and that the Ultimate Beneficial Owner (UBO) is fully compliant with his tax obligations in their country of tax residency.
Amicorp can assist you with an analysis, the regularization process and the implementation of optimized solutions for your clients.
The countries featured below depict those in which Amicorp has UBO presence and which have VDP programs or general VDP in place. (There are also other countries with general VDPs in place).
Countries with Special VDP in place
<ul>
<li>Argentina (available until March 31, 2017)</li>
<li>Brazil (available until October 31, 2016)</li>
<li>India (available until September 30, 2016)</li>
<li>Indonesia (available until March 31, 2017)</li>
<li>Malaysia (available until December 15, 2016)</li>
<li>South Africa (draft)</li>
<li>Turkey (available until December 31, 2016)</li>
<li>USA (available for an open period)</li>
</ul>
Countries with a General VDP in place
<ul>
<li>Chile</li>
<li>Colombia</li>
<li>Mexico</li>
<li>Russia</li>
<li>Taiwan</li>
</ul>
At Amicorp we have a three stage process to ensure your clients’ success with the regularization of their assets.
<img src="http://www.amicorp.com/AmiNews/2016/september/chart.jpg" alt="Chart">
Phase One: Analysis
Analysis of UBO’s personal situation: tax residency, structure and tax treatment of the same, undeclared assets / income and tax compliance. Information gathering process for the possibility to file a voluntary disclosure, including availability of a permanent or temporary Voluntary Disclosure Program, possibility of a voluntary disclosure on an administrative basis, possible limitation periods, potential reasons for an ineffectiveness of a voluntary disclosure, general considerations according to a disclosure, etc.
<ul>
<li>Analysis of possible tax risks on the basis of the description of the facts by the client.</li>
<li>Identification of persons affected by a possible voluntary disclosure (e.g. other family members, employees).</li>
<li>Request and collect all relevant bank or other documents (documents of trusts, foundations, companies, funds).</li>
<li>Close coordination with banks, trustees, councils of foundations, wealth managers etc.</li>
</ul>
Phase Two: Regularization
<ul>
<li>Processing of all relevant data according to the respective national law (such as list of assets, incoming and outgoing payments in order to check the source of funds, etc.) in close cooperation with the local tax advisor or law firm partner.</li>
<li>Arranging the legal certification procedure and the issuance of apostille, if required.</li>
<li>Study, in close cooperation with the local tax advisor or law firm partner, the possibilities offered by its country of tax residency, such as VDP / tax amnesty, calculating the financial impact.</li>
<li>We then propose the best solution according to the client’s personal situation (VDP / tax amnesty).</li>
<li>The client decides whether to submit a VDP / tax amnesty.</li>
<li>Once the client decides the best program, we coordinate with the local tax advisor or law firm partner.</li>
<li>In the event the client decides not to become compliant, we would advise breaking the relationship with him.</li>
</ul>
Phase Three: Optimization
<ul>
<li>Development, implementation and administration of estate and succession planning structures for the post-disclosure era.</li>
<li>Delivering of supporting documents and accounts of structures for tax reporting for future tax periods.</li>
</ul>
<hr>
<div>
For further information, please contact:
<div>
<h3>Geralda Kral-Buckley</h3>
Global Head – Private Clients 
+41 44 252 08 80 
<a href="mailto:g.buckley@amicorp.com">g.buckley@amicorp.com</a>
<hr>
</div>
<div>
<h3>Pablo Sandonato</h3>
Manager – Business Development 
+41 44 252 08 80 
<a href="mailto:p.sandonato@amicorp.com">p.sandonato@amicorp.com</a>
<hr>
</div>
<div>
<h3>Carla Cerqueira</h3>
Specialist – Global Solutions Development 
+34 932 417 563 
<a href="mailto:c.cerqueira@amicorp.com">c.cerqueira@amicorp.com</a></div>
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<guid>http://www.amicorp.com/AmiNews/2016/september/amicorp's-data-sourcing-and-analysis-services.php</guid>
<title>Amicorp’s Data Sourcing and Analysis Services</title>
<link>http://www.amicorp.com/AmiNews/2016/september/amicorp's-data-sourcing-and-analysis-services.php</link>
<pubDate>01 Sep 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2016/september/amicorp's-data-sourcing-and-analysis-services.jpg" height="120" width="500" />Amicorp is specialized in the sourcing of data from various origins across the web, as well as analyzing, translating and handling of this data into the required format.]]></description>
<content:encoded>
<![CDATA[ <h2>Amicorp is specialized in the sourcing of data from various origins across the web, as well as analyzing, translating and handling of this data into the required format. </h2>
Today’s data is used to solve business problems, to innovate better than competitors and to generate higher profits. With data mining and data extraction services, Amicorp is able to extract information out of unstructured or structured data and integrate this data in clients’ systems. This ranges from legal data to financial data and each solution is tailored to the client’s need.
By using automated scripts and/or manual searches, sourcing is executed and various data required by Amicorp’s clients is being collected. If required this data can be translated, further analyzed and extracted to be prepared in the format which is required by the client and the client’s systems.
Amicorp’s data team is prepared to handle data in a wide variety of languages, including languages from all major Asian, (Latin) American and some European countries. In addition to these services, Amicorp offers a unique scanning service which combines years of technological innovation with manual checks and balances to obtain 100% recognition.
The streamlined process of the scanning service offers significant benefits for processing volumes of documentation, such as financial documents like invoices and bank statements and other documents like legal documents and forms. For the scanning of the financial documents, we offer standard connections with a broad range of accounting packages, including cloud solutions. If required, the digitalized information can be completed with a booking proposal or an immediate booking.
We add value by offering you a simplified process, designed to minimize repetitive administrative tasks and focus on the end result. To keep pace with evolving platforms and formats, we also work with uploads of receipts/invoices made by a smartphone app.
Most of the Amicorp Outsourcing Services are rendered out of (ISO certified) offices in the Philippines and India. Client relationship managers are within reach in all the Amicorp offices and most offices have staff available to coordinate or even to execute a part of the work.
Contracts can be labor or seat based, transaction based or even goal based. Unlike other service providers, Amicorp is able to offer tailored and personalized high quality services, also for clients looking at a limited number of people involved.
Our clients benefit from around the clock services at a fraction of their current operating costs (savings of 50% can be achieved). The return-to-focus concept provides a dramatic bottom line impact that can help positively transform the economies of any business (including small and medium enterprises) and increase the efficiency of transaction execution.
Amicorp Outsourcing Services ensures value by enhanced process management, high standard service levels and substantial cost savings!
<hr>
<div>
<div>
For further information, please contact:
<h3>Hanno de Vriend</h3>
Director – Amicorp Outsourcing Services 
+34 932 082 581 
<a href="mailto:h.devriend@amicorp.com">h.devriend@amicorp.com</a> 
</div>
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<guid>http://www.amicorp.com/AmiNews/2016/august/the-chilean-private-investment-fund.php</guid>
<title>The Chilean Private Investment Fund (“FIP”)</title>
<link>http://www.amicorp.com/AmiNews/2016/august/the-chilean-private-investment-fund.php</link>
<pubDate>05 Aug 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2016/august/the-chilean-private-investment-fund.jpg" height="120" width="500" />Amicorp Funds Services is a fund administrator with a presence in Chile (Administradora de fondos de inversion Amicorp SA) which with the advice of external legal offices is creating Private Investment Fund structures and is responsible for the operational activities of these, whilst the investment is determined by the external fund manager. (Amicorp does not provide investment advice).]]></description>
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<![CDATA[ <h2>Amicorp Funds Services is a fund administrator with a presence in Chile (Administradora de fondos de inversion Amicorp SA) which with the advice of external legal offices is creating Private Investment Fund structures and is responsible for the operational activities of these, whilst the investment is determined by the external fund manager. (Amicorp does not provide investment advice). </h2>
Amicorp is a fund administrator that, with the advice of external legal advice, is creating Private Investment Funds structures and is responsible for the operational activities of it, whilst the investment is determined by the external fund manager. (Amicorp does not provide investment advice).
The private placement memorandum of the fund, according to its specially agreed investment strategy, allows the fund to invest in a variety of assets and financial instruments, including equities, bonds and derivative instruments including credit derivatives, options and futures, swap contracts, forward contracts, currencies and currency forward contracts, repurchase agreements, as well as listed and over-the-counter options and shares in other investment vehicles and unlisted companies.
Implementation and Administration
The steps for the implementation of the Chilean Private Investment Fund (“FIP”) are as follows:
<ol type="1">
<li>Once the FIP is formed through the execution of the Private Placement Memorandum (“PPM”) the FIP has to apply for a tax ID in Chile, which will be arranged by Amicorp.</li>
<li>Once the FIP has the tax ID the FIP will be able to open an investment account / bank account.</li>
<li>It will be necessary to obtain a Chilean tax ID for each and every investor (quota holder). In order to obtain a tax ID for the quota holder a Power of Attorney (“POA”) should be issued together with a copy of the quota holder´s passport which is then legalized at the Chilean consulate.</li>
<li>Once funds are invested in the FIP, each investor will be receiving quotas in USD (or any other currency) according to the amount invested (the initial value of each quota will be determined in the PPM of the FIP).</li>
<li>The Fund administrator is obliged by law to register each investment made with the Servicio de Impuestos Internos (“SII”, the Chilean tax authority) in Chile and with the Chilean Central Bank via Cap.14 (<a href="http://www.bcentral.cl/normativa/cambio-internacional/compendio-normas/pdf/CapXIV.pdf" targer="_blank">http://www.bcentral.cl/normativa/cambio-internacional/compendio-normas/pdf/CapXIV.pdf).</a></li>
<li>The Fund administrator then informs SII and the Central Bank in Chile (via Cap. 12 (<a href="http://www.bcentral.cl/normativa/cambio-internacional/compendio-normas/pdf/CapXII.pdf" target="_blank"> "http://www.bcentral.cl/normativa/cambio-internacional/compendio-normas/pdf/CapXII.pdf</a>) that the FIP will be investing in USD outside of Chile.</li>
</ol>
The information regarding investment objectives, risks, charges, expenses, etc. is provided in the PPM, which must be read and considered carefully before investing. Investments managed by the FIP are not insured or guaranteed by any bank, the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency and the quotas have not been and will not be registered under any Securities Act or any state securities laws.
The FIP can issue a POA to invest the funds if the investment manager deems this to be appropriate. This could be a natural person or company with proven professional experience in the investment field. The POA will be limited to the extent that the attorney-in-fact will not be allowed to make transfers to persons other than the quota holder.
Tax Treatment
The FIP is set up to (i) invest in all kind of securities, corporate rights, credit titles (i.e. loans) and/or (ii) in a Chilean company (i.e. Sociedad Anónima), which contributes to the net asset value (“NAV”) of the fund. The investors can be individuals and legal entities, Chilean or foreign.
Under Chilean law, the fund is a private entity without any legal personality, which does not require any preliminary approval of the local authorities in order to carry out the activities. The fund is regulated only by an internal regulation provided by the investors (PPM). Despite the absence of legal personality, the FIP is obliged to be included in the Chilean Tax database and, according to certain decisions, is considered subject to tax. Amicorp is obliged to provide the Chilean Superintendencia de Valores y Seguros every three months with basic Private Investment Fund information.
Amicorp’s Services
Our services include the full implementation and administration of the FIP. The set-up of a FIP consists of the preparation of the PPM and the subscription agreement, the NAV calculation and the completion of financials and any other relevant report to comply with the applicable laws in Chile.
The FIP is structured based on the collective objective of a potential group of investors interested in a certain economic sector or special portfolio investments. The objective of the FIP can vary from a diversified financial portfolio to specific private equity projects. Once the objectives are clearly defined, we will start the coordination of the investments process, which in some circumstances may require the appointment of third party advisors specialized in determined investments areas.
We establish a close relationship with each investor to achieve high standards of client satisfaction and corporate governance. For this purpose we have developed investment control reports in order to benchmark the achievements with the initial targets, making sure that special measures will be taken to improve the investment strategy if deemed necessary.
FIP features
<ul>
<li>Managed by an Amicorp preferred provider.</li>
<li>The number of quota holders can vary from 1 to 49.</li>
<li>The preferred provider is not allowed to offer the fund publicly.</li>
<li>The FIP is not regulated by the local authorities in Chile. However Amicorp needs to provide SVS with general information regarding the fund.</li>
<li>The investors must be registered with the SII (Chilean tax authorities).</li>
<li>Offshore and onshore investments are allowed.</li>
<li>The quota holders may be residents in Chile or non-residents.</li>
<li>The FIP may have a sole investment such as a participation in a Special Purpose Vehicle (SPV).</li>
<li>The FIP must prepare financials and be audited at least once a year.</li>
<li>The NAV will be provided to the investors periodically as is indicated in the PPM.</li>
<li>The FIP may open an account in Chile and offshore in USD or in any other currency in order to receive the contributions from the quota holders.</li>
</ul>
Foreign Client Applications
<ul>
<li>Chile is a politically stable country and is very attractive for foreign investors as Chile does not qualify as a low tax jurisdiction.</li>
<li>Chile has a modern infrastructure.</li>
<li>Chile has a well-developed investment market.</li>
<li>Chile is member of various international organizations, such as the OECD and FATF; and</li>
<li>Chile has a network of double taxation and bilateral investment protection treaties.</li>
</ul>
<hr>
<div>
<h3>Federico Tabja</h3>
Managing Director – Amicorp Americas LLC Agencia en Chile 
+56 2 2480 2700 
<a href="mailto:f.tabja@amicorp.com">f.tabja@amicorp.com</a> 
<hr>
</div>
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<guid>http://www.amicorp.com/AmiNews/2016/august/providing_corporate_service_solutions_for_your_challenges.php</guid>
<title>Amicorp: providing corporate service solutions for your challenges</title>
<link>http://www.amicorp.com/AmiNews/2016/august/providing_corporate_service_solutions_for_your_challenges.php</link>
<pubDate>01 Aug 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2016/august/providing_corporate_service_solutions_for_your_challenges.jpg" height="120" width="500" />Amicorp is a leading corporate service provider, particularly for the emerging markets which, since our establishment, has been our “home market”. At Amicorp we assist our clients in a multitude of ways, but key is assisting them in growing and internationalizing their businesses.]]></description>
<content:encoded>
<![CDATA[ <div>
<h2>Amicorp is a leading corporate service provider, particularly for the emerging markets which, since our establishment, has been our “home market”. At Amicorp we assist our clients in a multitude of ways, but key is assisting them in growing and internationalizing their businesses. </h2>
Do you have clients who want to open a hotel (chain) in the Caribbean, even in Cuba? Do they want to build or operate a railway in Africa? Do they need to arrange a royalty stream? Do they want to open a hospital group in India?
Amicorp is ready to assist our clients with non-standardized (yet client customized) solutions for the increasingly complex local and international regulatory environment we all find ourselves in.
Our experienced team of over 900 global professionals know and understand the challenges of growing our clients’ businesses. Our solutions meet the unique needs of each client, delivering the highest and most up-to-date standards of service, risk management, compliance expertise and regulatory knowledge. 
From Turkey to Indonesia, Brazil to Ethiopia we have recently helped our clients expand in the following industries and sectors:
<ul>
<li>Solar power generators</li>
<li>Hospital building</li>
<li>Cement producers</li>
<li>Telecom sector</li>
<li>Breweries</li>
<li>Hospitality sector</li>
<li>Palm oil plantations</li>
<li>Arranging royalty streams</li>
<li>Railroad & airport construction</li>
<li>Security trading platforms</li>
<li>Shipping terminals</li>
<li>Internet shopping platforms</li>
</ul>
<table border="1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="100%" valign="top">No “typical” clients: a recent client case study
A recently acquired client of Amicorp needed to establish a Hong Kong company for various trading activities. This is the type of request we receive all the time, and which we were able to expedite efficiently. On discussing the goals of the client it became apparent that he was unaware of the totality of services which Amicorp could assist him with.
The clients company was in the IT sector in China. He wanted to internationalize and grow his company, but he also wanted to acquire an FX trading platform in the Asia Pacific region as well. Our client was able to use Amicorp as a one-stop-shop for all their requirements.
Having established the Hong Kong company, as well as arranging a nominee director, we also worked with a business brokerage service in locating an Australian FX trading platform which, after conducting due diligence, our client went on to buy. We utilized the services of Amicorp Bank & Trust for escrow services (among others services), and took care of all licensing requirements.
This client is now also using our compliance and assurance services. He appreciated using Amicorp service offering, not least in bridging the cultural differences between China and Australia, as well as other markets, when growing internationally and making an international acquisition.</td>
</tr>
</tbody>
</table>
<hr>
<div>
<h3>Tomás Alonso</h3>
Head - Corporate Clients - Americas 
+1 (305) 416 4730 
<a href="mailto:t.alonso@amicorp.com">t.alonso@amicorp.com</a> 
<hr>
</div>
<div>
<h3>Matthijs Bogers</h3>
Head - Corporate Clients - Europe 
+352 26 27 43 1 
<a href="mailto:m.bogers@amicorp.com">m.bogers@amicorp.com</a>
<hr>
</div>
<div>
<h3>Debashish Dasgupta</h3>
Head - Corporate Clients - Asia/Middle East/Africa 
+971 4304 2900 
<a href="mailto:d.dasgupta@amicorp.com">d.dasgupta@amicorp.com</a>
<hr>
</div>
<div>
<h3>Brian Elders</h3>
Head - Sales - Hong Kong/China 
+852 3105 9882 
<a href="mailto:b.elders@amicorp.com">b.elders@amicorp.com</a>
</div>
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<guid>http://www.amicorp.com/AmiNews/2016/july/utilizing_amicorp_platform_for_your_financial_statements.php</guid>
<title>Utilizing Amicorp’s platform for your Financial Statements</title>
<link>http://www.amicorp.com/AmiNews/2016/july/utilizing_amicorp_platform_for_your_financial_statements.php</link>
<pubDate>29 Jul 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2016/july/utilizing_amicorp_platform_for_your_financial_statements.jpg" height="120" width="500" />Amicorp’s platform can assist you with managing your financial statements, and by offering a world of streamlined solutions to ensure you are in compliance with IFRS.]]></description>
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<![CDATA[ <div>
<h2>Amicorp’s platform can assist you with managing your financial statements, and by offering a world of streamlined solutions to ensure you are in compliance with IFRS.</h2>
We deliver monthly reports as well as the set of annual financial statements, which are composed mainly of the following reports:
<ul>
<li>Profit and Loss Accounts;</li>
<li>Balance Sheet;</li>
<li>General Ledger; and</li>
<li>Trial Balance.</li>
</ul>
This keeps comprehensive and reliable records for shareholders, owners, management, and other stakeholder to be informed about the company’s financial position. It also aids in verifying information that needs clarification from the auditor of financial statements. Additional reports and services can also be generated, depending on the business and needs of the client as mentioned below:
<ul>
<li>Cash Reports;</li>
<li>Detail Reports;</li>
<li>Performance Reports;</li>
<li>Position Reports;</li>
<li>Financial Ratios;</li>
<li>XBRL Reports;</li>
<li>Payroll processing (including leave management, retrieval of pay-slips, year-end summaries);</li>
<li>Handling of pension contributions;</li>
<li>Calculations of specific financial ratios; and</li>
<li>Linking of client bank accounts to the system.</li>
</ul>
<h3>SET-UP</h3>
All your financial accounts in the cloud
<ul>
<li>Setting up of generic chart of accounts;</li>
<li>Setting up bank accounts and assistance for automatic bank feeds;</li>
<li>Assigning of user access levels; and</li>
<li>User log-ins for all users.</li>
</ul>
Benefits of Accounting in the cloud
<ul>
<li>One time set-up fee;</li>
<li>No upgrade fees, no annual contracts;</li>
<li>Unlimited customer support;</li>
<li>Access anywhere, any time; and</li>
<li>Automatic backups.</li>
</ul>
 At a glance: the Dashboard
<ul>
<li>Summary of all bank accounts’ details and balances;</li>
<li>Summary of money coming in and moving out;</li>
<li>Watch list of accounts you specifically want to monitor;</li>
<li>Transactions details; and</li>
<li>Every report you need at a click of a button.</li>
</ul>
<h3>FEATURES</h3>
No data entry
Data feeds flows automatically to XERO from banks and other business software. Clients can enjoy real-time access to their transactions where bank reconciliation ensures up to date records.
Single Ledger
Businesses and their accounting professionals share the same set of financial data with no version control and no file transfer issues.
Integrated Payroll
Payroll data flawlessly flows to the ledger in XERO.
Flexible Reporting
Nice web-based reports that allow businesses to better understand their own financial position and performance. Export reports as PDF or Excel with complete cell formatting and formulas.
Extending XERO with add-ons
Can connect to more than a hundred add-ons that allows customers to create a solution that is right for them.
Unlimited Users
Organizations can invite as many people into XERO as they need to help ensure efficient operations, at no additional cost with controlling the access of these additional users.
Easy conversions
Easily convert QB data file to XERO at no cost.
24/7 unlimited support
Free unlimited support delivered through emails, comprehensive online help and online communities.
Secure and Private
All accounting information is stored on highly secured corporate grade servers that are automatically backed up.
<hr>
<div>
For further information, please contact:
<h3>Hanno de Vriend</h3>
Director – Amicorp Outsourcing Services 
+34 932 082 581 
<a href="mailto:h.devriend@amicorp.com">h.devriend@amicorp.com</a> 
</div>
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<guid>http://www.amicorp.com/AmiNews/2016/july/new_luxembourg_reserved_alternative_investment_fund.php</guid>
<title>The New Luxembourg Reserved Alternative Investment Fund</title>
<link>http://www.amicorp.com/AmiNews/2016/july/new_luxembourg_reserved_alternative_investment_fund.php</link>
<pubDate>20 Jul 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2016/july/new_luxembourg_reserved_alternative_investment_fund.jpg" height="120" width="500" />On July 14th 2016 the Luxembourg Parliament voted and approved the Law concerning the implementation of the new investment fund regime, known as the “Reserved Alternative Investment Fund (RAIF)”. ]]></description>
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<h2>On July 14th 2016 the Luxembourg Parliament voted and approved the Law concerning the implementation of the new investment fund regime, known as the “Reserved Alternative Investment Fund (RAIF)”.</h2>
This is another step towards increasing the attractiveness and leadership of the Luxembourg investment fund and asset management industry (first in Europe for investment funds, and second worldwide behind the U.S.) and represents a welcome enhancement of the Luxembourg AIF environment.
A RAIF is a Luxembourg alternative investment fund (AIF) managed and supervised by an external authorized Alternative Investment Fund Manager (AIFM) and subject to AIFMD requirements. A RAIF is not directly subject to the approval and (product) supervision of the local Supervisory Authority (CSSF) but only to indirect supervision through its Fund Manager (one layer solution).
The key advantages of the RAIF are therefore:
<ul>
<li>A very attractive and quick time to market</li>
<li>Very flexible risk diversification rules</li>
<li>The possibility to create umbrella vehicles / Fund of Funds</li>
<li>The possibility to create contractual vehicles like the FCPs</li>
<li>Fund taxation (not corporate tax) is applicable (except in case of risk capital)</li>
<li>No restrictions on distributions, no legal reserve required</li>
<li>Schemes with variable capital are available</li>
<li>Only indirect supervision by AIFM, directors, depository and auditors</li>
</ul>
The RAIF is expected to complete the toolkit of Investment Fund Products available in Luxembourg and is the perfect solution for asset managers, family offices, financial institutions and UHNWIs as it combines the advantages and attractiveness offered by regulated vehicles with the flexibility and quick time to market provided by unregulated instruments.
The Fund Services Division of Amicorp Luxembourg SA provides central administration, domiciliation and transfer agent services for all sorts of Luxembourg investment fund vehicles and regulated entities and is able to offer, together with its local partners, turnkey solutions from scratch.
Should you need more information about the new RAIF or our other solutions please do not hesitate to contact us.
<hr>
<div>
For further information, please contact:
<h3>Marco Lagona</h3>
Senior Relationship Manager 
+352 26 27 43 1 
<a href="mailto:m.lagona@amicorp.com">m.lagona@amicorp.com</a> 
</div>
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<guid>http://www.amicorp.com/AmiNews/2016/july/amicorp-participates-in-launch-of-umbrella-fund-for-impact-investments.php</guid>
<title>Amicorp participates in launch of Umbrella Fund for Impact Investments</title>
<link>http://www.amicorp.com/AmiNews/2016/july/amicorp-participates-in-launch-of-umbrella-fund-for-impact-investments.php</link>
<pubDate>19 Jul 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2016/july/amicorp-participates-in-launch-of-umbrella-fund-for-impact-investments.jpg" height="120" width="500" />Amicorp Luxembourg is pleased to announce that we have participated in the launch of a new Luxembourg Multi-Compartment Umbrella Fund for Impact Investments (European Impact Investing Platform SICAV-SIF). ]]></description>
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<h2>Amicorp Luxembourg is pleased to announce that we have participated in the launch of a new Luxembourg Multi-Compartment Umbrella Fund for Impact Investments (European Impact Investing Platform SICAV-SIF). </h2>
Amicorp Luxembourg is one of the partners of the new SICAV-SIF Platform “European Impact Investing Platform – EIIP” that has been approved by the local Supervisory Authority (CSSF) earlier this month.
This is the first SICAV-SIF worldwide fully dedicated to the Impact Investment Strategies and the first compartment which will be launched in a few weeks will invest in Social Housing Projects in Europe, in particular in Italy.
Amicorp Luxembourg SA provides the Central Administration, Domiciliation and Transfer Agent services for this new Umbrella Fund (Multi-Compartment) that matches perfectly with Amicorp’s philosophy in connection with social sustainability and Corporate Social Responsibility.
Should you wish more information concerning this new Multi-Compartment Platform, or on our other solutions please do not hesitate to contact us.
<hr>
<div>
For further information, please contact:
<h3>Marco Lagona</h3>
Senior Relationship Manager 
+352 26 27 43 1 
<a href="mailto:m.lagona@amicorp.com">m.lagona@amicorp.com</a> 
</div>
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<guid>http://www.amicorp.com/AmiNews/2016/july/opportunities-arising-from-Cyprus-DTT-with-Iran.php</guid>
<title>Opportunities arising from Cyprus DTT with Iran</title>
<link>http://www.amicorp.com/AmiNews/2016/july/opportunities-arising-from-Cyprus-DTT-with-Iran.php</link>
<pubDate>07 Jul 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2016/july/opportunities-arising-from-Cyprus-DTT-with-Iran.jpg" height="120" width="500" />On August 4th 2015 Cyprus signed an agreement with Iran for the avoidance of double taxation. The provisions of the treaty came into force on January 1st 2016 in Cyprus and in March 2016 in Iran. ]]></description>
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<h2>On August 4th 2015 Cyprus signed an agreement with Iran for the avoidance of double taxation. The provisions of the treaty came into force on January 1st 2016 in Cyprus and in March 2016 in Iran.</h2>
The tax treaty, which is based on the OECD Model Conven
<h3>On August 4th 2015 Cyprus signed an agreement with Iran for the avoidance of double taxation. The provisions of the treaty came into force on January 1st 2016 in Cyprus and in March 2016 in Iran.</h3>
The tax treaty, which is based on the OECD Model Convention for the Avoidance of Double taxation on Income and on Capital, adds to Cyprus’ extensive network of double tax agreements, which currently covers more than 50 countries.
The agreement opens up new opportunities for trade and cooperation between the two countries, following the lifting of international sanctions against Iran.
Main provisions of the treaty can be seen in the diagram and notes below:
 
<img src="http://www.amicorp.com/AmiNews/2016/july/chart1.jpg" alt="Chart"> 
 
N1 – As per treaty the withholding tax rate on dividends is 5% if the bene¬ficial owner holds directly at least 25% of the capital of the dividend paying company. In all other cases the withholding tax rate is 10%. However currently Cyprus and Iran do not impose withholding tax on dividends. The treaty rates will apply only when any or both of the two states impose withholding tax in their domestic legislation.
N2 – Interest payments from Iran to the Cypriot beneficial owner of the interest will be subject to a WHT at a rate of 5% as per double tax treaty. However, under Iranian law, interest payments to non-Iranian tax residents are subject to a withholding tax of 3% and therefore, the lower rate of 3% is expected to apply for interest payments from Iran to Cyprus.
N3 – Capital gains derived from the sale of shares will be taxable only in Cyprus, unless the shares derive more than 50% of their value directly from immovable property situated in Iran. In this respect, such gains will be subject to taxation in Iran. Gains on the sale of shares in Cyprus will be exempt from tax, unless more than 50% of their value derives directly from immovable property situated in Cyprus. If not capital gains tax in Cyprus is 20%.
N4 – Interest income received from intra-group lending bears 12,5% Corporation tax. In case of back-to back financing the minimum profit margins on the lending interest rates acceptable by the Cypriot tax authorities are as follows:
 
<table width="500">
<tbody>
<tr>
<td>Less than EUR 50mln</td>
<td>-----> 0.35%</td>
</tr>
<tr>
<td>EUR 50mln - EUR 200mln</td>
<td>-----> 0.25%</td>
</tr>
<tr>
<td>Over than EUR 200mln</td>
<td>-----> 0.125%</td>
</tr>
</tbody>
</table>
 
N5 - Incoming dividends from Iran, are exempt from Cyprus corporation tax and may also be exempt from SDC provided that one of the below is met:
<ul>
<li>No more than 50% of the Iranian Company’s activities lead to investment income; or</li>
<li>The foreign tax rate must not be significantly lower than the tax payable in Cyprus (i.e. lower than 6.25%).</li>
</ul>
N6 – Royalty profits are subject to 12.5% corporation tax. However, if intellectual property is owned by the Cyprus company, 80% of the any income generated from intellectual property is exempt from corporation tax. Therefore the effective tax rate is reduced to 2.5%.
<img src="http://www.amicorp.com/AmiNews/2016/july/chart2.jpg" alt="Chart">
Cyprus’ infrastructure, legal framework and availability of educated and qualified individuals are favorable conditions for the development of an R&D center in Cyprus. Amicorp Cyprus can assist and support in setting up and managing such entity.
N7 – These amounts will vary depending on the country. Indicative rates as per applicable tax/treaties for some major countries/jurisdictions are as follows:
 
<table width="500">
<tbody>
<tr>
<td>REGION</td>
<td>DIVIDENDS</td>
<td>INTEREST</td>
<td>Royalties</td>
</tr>
<tr>
<td>Russia</td>
<td>5-10%</td>
<td>0%</td>
<td>0%</td>
</tr>
<tr>
<td>India</td>
<td>10-15%</td>
<td>0-10%</td>
<td>15%</td>
</tr>
<tr>
<td>USA</td>
<td>5-15%</td>
<td>0-10%</td>
<td>0%</td>
</tr>
<tr>
<td>Ukraine</td>
<td>5-15%</td>
<td>2%</td>
<td>5-10%</td>
</tr>
<tr>
<td>Middle East</td>
<td>0-15%</td>
<td>0-15%</td>
<td>0-15%</td>
</tr>
<tr>
<td>China</td>
<td>10%</td>
<td>10%</td>
<td>10%</td>
</tr>
<tr>
<td>EU (Application of EU Directives)</td>
<td>0%</td>
<td>0%</td>
<td>0%</td>
</tr>
</tbody>
</table>
 
N8 – The Notional Interest Deduction (NID) that can be used to reduce taxable income. This applies as a deemed interest expense on newly injected capital and can reduce the effective tax rate to 2.5%. It is calculated by multiplying a ‘reference interest rate’ on the new capital issued by the company. The reference interest rate is the ten year government bond rate of the State the capital is invested in, plus 3%. However this cannot be less than the ten-year Cyprus Government bond increased by 3%.
<img src="http://www.amicorp.com/AmiNews/2016/july/chart3.jpg" alt="Chart">
The allowable deemed expense cannot exceed 80% of the taxable income of the company. In case of a tax loss, no expense can be claimed.
A plethora of rules and regulations is being developed by international bodies in order to combat tax avoidance. These include the OECD’s base erosion and profit shifting (BEPS) project and several EU anti abuse rules. Cyprus, being a member country of the European Union and geographically located at the crossroad of three continents, as well as having a multi-lingual, highly skilled human capital and first grade infrastructure can provide the right economic and strategic reasons to set up an entity on the island.
Amicorp Cyprus is available to assist with any queries you might have, help you understand and explore the opportunities that may arise for your business as a result of this DTAA and assist in the set-up and maintenance of Cyprus as well as other jurisdiction entities.
<hr>
<div>
For further information, please contact:
<h3>Elia Nicolaou</h3>
Managing Director 
+357 22 504 000 
<a href="mailto:e.nicolaou@amicorp.com">e.nicolaou@amicorp.com</a> 
</div>
<div>
<h3>Antonis Melas</h3>
Accounting Manager 
+357 22 504 000 
<a href="mailto:a.melas@amicorp.com">a.melas@amicorp.com</a>
</div>
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<guid>http://www.amicorp.com/AmiNews/2016/june/amicorp-social-impact-solutions-services.php</guid>
<title>Amicorp Social Impact Solutions Services</title>
<link>http://www.amicorp.com/AmiNews/2016/june/amicorp-social-impact-solutions-services.php</link>
<pubDate>14 Jun 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2016/june/amicorp-social-impact-solutions-services.jpg" height="120" width="500" />Presents investors with an opportunity to make a positive impact on endangered animal species by saving a family of 6 elephants.]]></description>
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<h2>Presents investors with an opportunity to make a positive impact on endangered animal species by saving a family of 6 elephants.</h2>
Amicorp Group is committed to help drive social impact. How can you, your family or your company invest time, money and expertise into making a positive impact with identifiable projects which have clear goals? At Amicorp we work hand in hand with trusted partners to bring you such opportunities. Our unique service provides a one-stop solution to running philanthropy, charity and corporate social responsibility programs in meaningful, effective, easy and measurable ways. Together with Shared Universe Ventures, one of our partners, we are offering a social impact investment opportunity in which you can make a difference, a positive impact, to endangered wildlife in Africa.
Help Save the Elephants
A beautiful family of six majestic elephants will be culled unless they can be transported from their current location to a new home. Shared Universe Ventures (SUV) Ltd, needs to raise USD 170,000 at short notice for electrifying the fence around their new 7221 hectares (17800 acres) home as well as their transportation. Right now, the elephants are in a smaller private reserve, they have outgrown, and where their needs can no longer be met. Shared Universe Ventures can adopt all 6 animals for free, on condition that it can fund the transportation and electrification costs (USD 30,000 is needed to transport the elephants from their current location and a further USD 140,000 is required to electrify 43 kilometers of fence to meet standards to protect the family).
We are battling deadlines to liberate these majestic animals from their death sentence. The preparation expenditures are significant, to meet established Big 5 game codes so the family can go about their lives in a protected safe haven. This is literally a labor of love.
Throughout Africa, over 20,000 elephants were killed for ivory in 2015. The mission of Shared Universe is to fundamentally safeguard elephants, rhinos and other endangered wildlife. This family of elephants needs decision makers - now. We have one chance and the countdown in underway. Will you help this family of 6 defenseless elephants?
What will you receive in return?
The greatest reward is the satisfaction knowing that you helped save these animals from certain death. Moreover, for every USD 10,000 invested, you will receive a share in SUV and be welcomed into the game breeding circle that entitles you to accommodation at the exclusive, 4* Mopane Bush Lodge. Discounts on accommodation and consumables at Mopane Bush Lodge, including use of game drive vehicles. And the opportunity to build your own personal lodge within the game reserve. Also accommodation is interchangeable at the luxurious Alpasión Lodge (one of SUV partners) located in the beautiful wine valley of Mendoza, Argentina.
In addition when investing the following amounts you will also be entitled to:
<ul>
<li>USD 10K-50K: a nomination on the website;</li>
<li>USD 50K-100K: presence on SUV’s Shareholder wall of fame and rights to short movies with reserve/animals for promotional purposes;</li>
<li>USD 100K-200K: name a vehicle after the donor; a nomination on the reserve itself (Donor wall of fame); rights to short movies with reserve/animals for promotional purposes;</li>
<li>USD 200K or more: name a building/enclosure after the donor; a nomination on the reserve itself (Donor wall of fame); rights to short movies with reserve/animals for promotional purposes.</li>
</ul>
This is a unique opportunity to own an exclusive part of South Africa dedicated to the conservation of endangered animals, including Big 5 game. With your impact investment, we can create hope for the animals and their habitat and ultimately jobs for local families. At almost 18,000 acres with opportunities for further growth, this is the biggest private farm in the Limpopo Valley region.
At Shared Universe Ventures, every aspect of activities from a management and operational perspective is focused on legacy and creating a bright future for endangered animals and everybody associated with it. Shared Universe is an investment fund investing in and protecting critically endangered species. It was established in February 2014, and has attracted investors from eight countries on five continents including South Africa, the United States, the United Kingdom, The United Arab Emirates, India, Singapore, the Netherlands and Argentina.
About Shared Universe Ventures
Shared Universe Ventures Ltd. (BVI company registration no. 1811442) was founded on February 2014 with a mission to protect endangered species, and a vision to become the best rhino conservancy of Africa. It is a listed investment fund and operates the 7,220 hectare Mapesu Private Game Reserve (Pty) Ltd. in Limpopo Province in South Africa, part of the Limpopo Valley Conservancy and borders with the Mapungubwe National Park, a UNESCO World Heritage Site.
Visit the website at: <a href="http://www.shareduniverseafrica.com/">www.shareduniverseafrica.com</a> and join the social media community for updates:<a href="http://www.facebook.com/shareduniverseventures">www.facebook.com/shareduniverseventures</a>
More about our Social Impact Services
At Amicorp we have experience in running our own corporate foundation and impact projects around the world. We can advise you on defining and setting goals related to financial returns and social outcomes. We also identify which types of investments that deliver the greatest impact in your area of interest and guide you through structuring these investments, and measuring your social impact as well as defining your personal role in the investment effort.
At Amicorp our team of highly qualified social impact experts can support you with all your requirements in your drive to deliver social impact. Our team is supported by many experts within Amicorp, and given our global presence we can deliver truly local knowledge in your social impact drive.
Reach out to us directly or take a look on our website for more on how we can help you with other social impact solutions to meet your needs.
<hr>
<div>
For more information on this investment, help save the elephants, please contact:
<h3>Sue Meng Chan</h3>
Director of Sustainable development +31 20 578 8388 <a href="mailto:s.chan@amicorp.com">s.chan@amicorp.com</a> (+65) 6532 2902 Mopane Bush Lodge: <a href="http://mopanebushlodge.co.za/">http://mopanebushlodge.co.za/ </a> Alpasión Lodge: <a href="http://www.alpasion.com/">http://www.alpasion.com/</a>
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<guid>http://www.amicorp.com/AmiNews/2016/may/routing-investments-in-india-through-the-netherlands.php</guid>
<title>Routing investments in India through the Netherlands</title>
<link>http://www.amicorp.com/AmiNews/2016/may/routing-investments-in-india-through-the-netherlands.php</link>
<pubDate>25 May 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://amicorp.com/AmiNews/2016/may/routing-investments-in-india-through-the-netherlands.jpg" height="120" width="500" />Further to the latest developments in relation to the protocol signed between India and Mauritius and consequent taxation of capital gains on the sale of Indian companies, the Netherlands can continue to be a preferred jurisdiction for routing investments in India due to its full participation exemption on dividends and capital gains derived from a qualifying shareholding in an Indian subsidiary, generally a shareholding of at least 5 per cent.]]></description>
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<h2>Further to the latest developments in relation to the protocol signed between India and Mauritius and consequent taxation of capital gains on the sale of Indian companies, the Netherlands can continue to be a preferred jurisdiction for routing investments in India due to its full participation exemption on dividends and capital gains derived from a qualifying shareholding in an Indian subsidiary, generally a shareholding of at least 5 per cent.</h2>
A double taxation treaty between India and the Netherlands is also in place which can reduce the withholding taxes on dividends paid to a Dutch holding company.
The Netherlands has a very favourable tax treatment for foreign-owned companies with no withholding taxes on interest and royalties and a full (to zero) or significantly reduced taxes on dividends.
<hr>
<div>
Amicorp Netherlands can assist with any queries you may have, for further information regarding pricing or required compliance documentation please contact: 
<h3>Harold van den Eynde</h3>
Amicorp Netherlands B.V. 
<a href="mailto:h.eynde@amicorp.com">h.eynde@amicorp.com</a>
</div>
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<guid>http://www.amicorp.com/AmiNews/2016/may/chinese-fund-administration-reporting-just-around-the-corner.php</guid>
<title>Chinese Fund Administration Reporting just around the corner</title>
<link>http://www.amicorp.com/AmiNews/2016/may/chinese-fund-administration-reporting-just-around-the-corner.php</link>
<pubDate>19 May 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://amicorp.com/AmiNews/2016/may/chinese-fund-administration-reporting-just-around-the-corner.jpg" height="120" width="500" />Traditional and Simplified Chinese funds administration reporting]]></description>
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<![CDATA[ <div>
<h2>Traditional and Simplified Chinese funds administration reporting</h2>
At Amicorp, we pride ourselves on our ability to improve our service offerings to satisfy our clients' needs.
We are pleased to launch the unique Chinese language fund administration reporting packages to our hedge and private equity fund clients to complement our already comprehensive services. These will be launched in Q3 2016.
The new reporting provides both Traditional and Simplified Chinese complying with IFRS accounting standards.
Our existing fund clients will have their reports delivered in June of this year.
<hr>
<div>
For further information, including information on fees/pricing, and how the DCSX can best work for you, please contact:
<h3>Stephen Wong</h3>
Relationship Manager 
<a href="mailto:s.wong@amicorp.com">s.wong@amicorp.com</a>
</div>
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<guid>http://www.amicorp.com/AmiNews/2016/february/amicorp-launches-cayman-islands-desk-in-hong-kong.php</guid>
<title>Amicorp launches Cayman Islands Desk in Hong Kong</title>
<link>http://www.amicorp.com/AmiNews/2016/february/amicorp-launches-cayman-islands-desk-in-hong-kong.php</link>
<pubDate>25 Feb 2016 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[<img src="http://www.amicorp.com/AmiNews/2016/february/amicorp-launches-cayman-islands-desk-in-hong-kong.jpg" height="120" width="500" />Amicorp has seen an increased demand from our Asia market for Cayman products and services. In an effort to address that growing demand, and the challenges posed by the different time zones and languages involved, a Cayman desk in our Hong Kong office was established in January of this year.]]></description>
<content:encoded>
<![CDATA[ <div>
<h2>Amicorp has seen an increased demand from our Asia market for Cayman products and services. In an effort to address that growing demand, and the challenges posed by the different time zones and languages involved, a Cayman desk in our Hong Kong office was established in January of this year.</h2>
Amicorp’s Cayman Islands Desk offers Cayman products in a timely fashion, addressing your clients’ trust or structuring solution requirements. For the Asian market the Caymans is particularly important for trusts, funds and companies.
Our Cayman desk is headed by Agnes Tsang who previously worked at the Cayman Desk for the law firm Maples in Hong Kong and who is fluent in multiple languages. From Hong Kong we have direct access to the various Government systems in the Cayman Islands.
Advantages of using Amicorp’s Cayman Islands Desk in Hong Kong:
<ul>
<li>English, Cantonese and Mandarin speaking Cayman trained staff who ensure faster onboarding of clients</li>
<li>As much work as possible will be handled on the ground in Hong Kong with final review/sign off/approval from Amicorp Cayman within 24 hours</li>
<li>A dedicated Account Manager in the Cayman will assist our staff with any matters that require immediate action in the Cayman Islands</li>
<li>Companies have the ability to name search in Hong Kong</li>
<li>With Trusts, the ability to draft letter of wishes in dual language – Mandarin and others</li>
<li>With Funds, we have the ability to do formations of the underlying entities</li>
</ul>
These advantages make Amicorp Cayman Islands Desk the preferred home for intermediaries and clients in Asia. The Cayman products we have seen the greatest interest in from Hong Kong and China include:
<ul>
<li>Cayman Islands Exempted Company</li>
<li>Cayman LP</li>
<li>STAR Trust</li>
<li>Grantor Trust Declaration of Trust</li>
<li>Cayman Mutual Fund</li>
</ul>
<hr>
<div>
For further information, including information on fees/pricing, and how the DCSX can best work for you, please contact:
<h3>Brian Elders</h3>
Head - Corporate Clients (Asia) 
<a href="mailto:b.elders@amicorp.com">b.elders@amicorp.com</a>
</div>
</div> ]]>
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<item>
<guid>http://www.amicorp.com/AmiNews/2015/december/the-dutch-caribbean-securities-exchange.php</guid>
<title>The Dutch Caribbean Securities Exchange</title>
<link>http://www.amicorp.com/AmiNews/2015/december/the-dutch-caribbean-securities-exchange.php</link>
<pubDate>06 Nov 2015 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[
<img src="http://www.amicorp.com/AmiNews/2015/december/the-dutch-caribbean-securities-exchange.jpg" height="120" width="500" />A multi-purpose solution for financing, investments, wealth planning and tax optimization. Amicorp is well placed to assist with your listing on the Dutch Caribbean Securities Exchange (DCSX) – and Curaçao offers an excellent jurisdiction which accomodates clients that consider listing.]]></description>
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<![CDATA[<div>
<h2>Amicorp is well placed to assist with your listing on the Dutch Caribbean Securities Exchange (DCSX) – and Curaçao offers an excellent jurisdiction which accomodates clients that consider listing.</h2>
The DCSX is a self-regulatory international exchange for the listing and trading of securities. Supervised by the Central Bank of Curaçao and Sint Maarten, the DCSX provides a timesaving and cost-efficient facility for both international and local corporations and investment funds, and other financing structures in a reputable jurisdiction furnishing a high quality alternative to the regional exchanges in the Caribbean and beyond. The DCSX offers the opportunity to the issuers to add the necessary value, market awareness, prestige and profile to their organizations, as well as a time and cost-efficient transparent listing process and securities placement with corporations and investment funds.
Along with the core business of an exchange, listing securities is also used as a wealth planning, privacy and tax optimization tool. In order to timely prepare and stay compliant in the era of global tax transparency, Amicorp can assist you with your listing, public or private placement on the DCSX.
Who may benefit from a DCSX listing?
<ul>
<li>Latin American, Pan-European and Asian markets;</li>
<li>Entrepreneurial platforms for start-up companies, innovation companies (SMEs) looking for alternative sources for capital and an alternative to crowdfunding;</li>
<li>Large privately/family held companies seeking private listing;</li>
<li>International and local funds / corporations (creating liquidity or testing the waters in preparation for a listing on larger exchanges);</li>
<li>“Technical listings”; and</li>
<li>Local corporations (both private and Government owned) in need of additional/alternative financing needs to expand their business; this in addition to the traditional bank financing possibilities.</li>
</ul>
<h2>Why Curaçao?</h2>
A multilingual mid-shore location close to Latin America with a developed and reputable financial services industry: a recognized jurisdiction.
Benefitting from the new Tax Arrangement between the Netherlands and Curaçao (“TANC”)
A rate of 0% Dutch dividend withholding tax (instead of the current rate of 8.3%) applies to a shareholding of at least 10% by the dividend receiving entity, if at least one of the following criteria is met:
<ul>
<li>Its shares are traded on a recognized securities exchange (direct securities exchange test);</li>
<li>At least 50% of its shares are held directly by a shareholder whose shares are traded on a recognized securities exchange (indirect securities exchange test);</li>
</ul>
The DCSX in Curaçao qualifies as a “recognized securities exchange”.
<h2>What Amicorp can do for you</h2>
We coordinate and manage the pre- and post-listing process of securities on the DCSX and other exchanges. We play a defining role for both issuers and investors as we ensure that the securities to be listed will fulfill the exchange’s requirements and its obligations to inform the public of market relevant data. We can also introduce the issuer to a select group of professional advisors who have the required expertise in project/corporate finance to efficiently structure and place offerings. Additionally, we can manage the issuance process in which the appropriate issuance partners are selected and the possible approaches to raise finance in the international capital market are analyzed.
These services include, but are not limited to:
<ul>
<li>Floating eligibility and SPOs: company corporate management & finance analysis</li>
<li>Selection of advisors / partners: business plan, due diligence and initial public offering (IPO)</li>
<li>Structuring, legal documentation and Securities Law Disclosure</li>
<li>Market analysis and research coverage</li>
<li>Marketing and placement: registration and listing, road show, pricing</li>
<li>Securities issuance and allocation</li>
<li>Post-issuance management: ongoing disclosure obligations and communications</li>
</ul>
<h2>Solution Examples</h2>
Foreign Direct Investment / Family Structures
The added value of listing as compared to classic structures include:
<ul>
<li>Sustainability: particular clauses for listed companies in LOB rules;</li>
<li>In some jurisdictions the UBO does not have to be disclosed;</li>
<li>Market value: the company’s profile is elevated;</li>
<li>Flexibility: easy allocation of shares in case of many shareholders; and</li>
<li>Cost – effective: DCSX fees are quite competitive.</li>
</ul>
Transactional Substance
<ul>
<li>A subsidiary (IBC1) of a Local Co. wants to purchase the shares of another company (IBC2).</li>
<li>The acquisition is normally executed on a private basis via a Sale and Purchase Agreement (SPA).</li>
<li>This procedure may be monitored by the local authorities arguing lack of both transparency and fair value in the purchase.</li>
<li>Substance and transparency will be provided by listing the IBC2 on the DCSX, and executing the purchase transaction via the exchange.</li>
<li>The transaction now takes place at fair market value, for purposes of the tax or other authorities in the home jurisdiction.</li>
</ul>
Minimizing capital gains taxes and transfer pricing rules
<ul>
<li>The Holding Co. acquires Local Co. for 12 and lists its own shares on the DCSX with value 12</li>
<li>Hold. Co 2 buys listed Holding. Co for 50</li>
<li>A capital gain of 38 is made without capital gains taxes in Curaçao (DCSX)</li>
<li>No capital gains in Holding Co jurisdiction</li>
<li>Capital gain tax savings can be achieved at the Local Co. level</li>
<li>A new market value of 50 for the Local Co. has been achieved</li>
<li>Avoidance of applicable transfer pricing rules by having an unrelated third party setting market price</li>
</ul>
Alternative to a Business-to-Business loan
<ul>
<li>UBO1 wants to inject capital to the Local Co. without issuing equity, but issuing debt instead (to avoid dilution).</li>
<li>The Int’l Holdco. issues a bond.</li>
<li>The bond is listed on the DCSX and offered on a private basis.</li>
<li>UBO1 purchases the bond via a banker or an SPV (e.g. EEMF).</li>
<li>The local Co. receives fresh capital.</li>
<li>The UBO does not have to be identified.</li>
<li>The bank or SPV charges a risk free commission/transactional fee.</li>
<li>The operation has the substance of a public transaction.</li>
</ul>
DCSX Listed Bond may qualify for UK withholding tax exemption
<ul>
<li>Traditionally UK advisors use SPVs in countries like the Netherlands and Luxembourg that have double tax treaties with the UK in order to minimize withholding tax</li>
<li>Due to international initiatives like BEPS and CRS, financing structures and SPV’s in general are under scrutiny</li>
<li>Underlining substance, recognized DCSX listed bonds provide a viable alternative solution for withholding tax relief</li>
</ul>
Investment funds opening up for institutional investors
Institutional investors are restricted to invest in certain investment funds only, such as funds incorporated in reputable jurisdictions and/or listed on an exchange such as the DCSX.
(Existing) Investment fund
An (existing) investment fund as well as a solution for families whereby different members hold different share classes.
<h2>Advantages Summarized</h2>
Contrary to what many imagine, a listing on the DCSX is not complex. Furthermore, Amicorp’s coordination of your listing alleviates all the concerns and makes sure your issue and the listing runs smoothly. Dependent on the particular situation and client interests, listing can fulfil financing, company profile elevation, estate planning, exit possibilities and value creation needs.
It is recommended to discuss with your financial / tax advisor the benefits a listing can bring you. Amicorp can participate in these discussions from the beginning.
Finally, in view of the global tax transparency initiatives like FATCA, CRS and BEPS, listing can contribute to a better structure for the entrepreneur and his enterprise(s).
<hr>
<div>
For further information, including information on fees/pricing, and how the DCSX can best work for you, please contact:
<h3>Frank Lammers</h3>
Director – Business Development - Curaçao 
<a href="mailto:f.lammers@amicorp.com">f.lammers@amicorp.com</a>
</div>
</div> ]]>
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<guid>http://www.amicorp.com/AmiNews/2015/november/amicorp-launches-social-impact-solutions.php</guid>
<title>Amicorp launches Social Impact Solutions</title>
<link>http://www.amicorp.com/AmiNews/2015/november/amicorp-launches-social-impact-solutions.php</link>
<pubDate>05 Nov 2015 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[For your CSR and Social Impact Solutions needs, reach out to your key source of expertise: Amicorp’s Social Impact Solutions. <img src="http://www.amicorp.com/AmiNews/2015/november/amicorp-launches-social-impact-solutions.jpg" height="120" width="500" /> ]]></description>
<content:encoded>
<![CDATA[<div>
<h2>For your CSR and Social Impact Solutions needs, reach out to your key source of expertise: Amicorp’s Social Impact Solutions.</h2>
We know that driving social impact, or investing your time, money and expertise into making a positive impact on society, is highly appealing to many. Yet it can also be a daunting prospect. The field is crowded with organizations asserting their championed causes. Today there is a dearth of information and expertise about social impact, along with a lack of structure and clarity on goals. Trying to make a difference is often frustrating and disenchanting, when it should be a meaningful experience.
What is needed is a trusted partner who is highly qualified to advise you in defining and setting goals related to financial returns and social outcomes. One who can identify which types of investments offer the greatest impact in your area of interest and guide you through structuring these investments, and measuring your social impact as well as defining your personal role in the investment effort.
At Amicorp our team of highly qualified social impact experts can support you with all your requirements in your drive to deliver social impact. Our team is supported by many experts within Amicorp, and given our global presence we can deliver truly local knowledge in your social impact investment drive.
You will be able to take advantage of our expertise through our service offering which includes:
<ul>
<li>Translating causes of interest into tangible opportunities</li>
<li>Identification of your specific social impact goals and project creation</li>
<li>Planning for multi-generational and peer involvement</li>
<li>Developing your CSR/Sustainability business strategy</li>
<li>Implementing different approaches for social impact</li>
<li>Measuring social impact efforts</li>
<li>Opportunity to use the Amicorp Community Foundation as an umbrella for your social impact actions</li>
<li>Access a portfolio of projects that are free of administrative charges where 100% of your giving goes directly to impact creation.</li>
</ul>
<hr>
<div>
Reach out and start the conversation today with your Amicorp liaison or Amicorp’s Social Impact Solutions team. 

<h3>Sue Meng Chan</h3>
Director – Sustainable Development - Singapore 
<a href="mailto:s.chan@amicorp.com">s.chan@amicorp.com</a>
</div>
</div>]]>
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</item>
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<guid>http://www.amicorp.com/AmiNews/2015/november/amicorp-fatca-and-crs-outsourcing-services.php</guid>
<title>Amicorp’s FATCA and Common Reporting Standards Outsourcing Services</title>
<link>http://www.amicorp.com/AmiNews/2015/november/amicorp-fatca-and-crs-outsourcing-services.php</link>
<pubDate>05 Nov 2015 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[To prevent identity theft, fraud, money laundering and terrorist financing, Know Your Customer (KYC) polices are increasingly important globally. Today’s business environment is without margin for error, with heavy emphasis on maintaining ethical standards and meeting requirements outlined by regulatory institutions.
<img src="http://www.amicorp.com/AmiNews/2015/november/amicorp-fatca-and-outsourcing.jpg" height="120" width="500" /> ]]></description>
<content:encoded>
<![CDATA[ <div>
<h2>KYC Compliance</h2>
To prevent identity theft, fraud, money laundering and terrorist financing, Know Your Customer (KYC) polices are increasingly important globally. Today’s business environment is without margin for error, with heavy emphasis on maintaining ethical standards and meeting requirements outlined by regulatory institutions.
Amicorp Compliance Services offers an integrated solution that enables firms to be compliant with KYC regulations and manage the associated non-compliance risks. We reduce your compliance burden by providing background checks on individuals and legal entities, as well as document management systems.
We improve your level of risk management, for small, medium and large businesses in various sectors. You will benefit immediately from:
<ul>
<li>A complete and efficient identity verification system;</li>
<li>Self-sustaining electronic document management;</li>
<li>A comprehensive risk management system; and</li>
<li>An experienced compliance department.</li>
</ul>
<h2>FATCA / CRS Compliance</h2>
You or your client may hold one or more entities with investment accounts, which under FATCA or IGAs may have to be classified as a Foreign Financial Institution (FFI). Registration of FFI’s becomes an important component in complying with the existing FATCA provisions.
This impacts not only mutual funds and trusts with corporate trustees, but also many offshore Private Investment Companies with a discretionary mandate granted to investment managers, which are to be classified as FFI-Investment Entities. Amicorp Outsourcing Services offers the following services:
<ul>
<li>Determine the initial classification of an entity as an FFI or NFFE under the FATCA regulations or IGAs;</li>
<li>Register the entity classified as FFI with the IRS and obtain a Global Intermediary Identification Number (GIIN);</li>
<li>Prepare the relevant “W8” Forms or self-certificates to establish the FATCA status of the entity to the banking institutions.</li>
</ul>
For entities that are identified as NFFEs, we prepare the necessary certification documentation required by the banking institutions and withholding agents, including the due diligence of substantial US owners or controlling US persons as connected to the entity.
The Common Reporting Standards (CRS) has been promoted by the OECD as a global framework for the automatic exchange of tax information. Amicorp continues to maintain close monitoring of all new regulations. We are well positioned to help you meet all the reporting requirements. CRS will impose due diligence and reporting obligations on financial institutions similar to FATCA, but now it comes to bank accounts owned by residents of any CRS Participating Jurisdiction. Financial institutions will even be required to look through certain investment entities established in non-CRS jurisdictions in order to identify and report on the relevant controlling persons who are resident of CRS Participating Jurisdictions.
Information on investment income and balances of bank accounts will be reported by the financial institutions to the local tax authorities, which will automatically exchange such information to the applicable tax authorities of other CRS Participating Jurisdictions that will use the same information to check the income declared by the individual taxpayers in their local tax returns.
Most of the Amicorp Outsourcing Services are rendered out of (ISO certified) offices in The Philippines, India and Mauritius. Client relationship managers are within reach in all the Amicorp offices and most offices have staff available to coordinate or even to execute a part of the work.
Contracts can be labor or seat based, transaction based or even goal based. Unlike other service providers, Amicorp is able to offer tailored and personalized high quality services for clients looking at a limited number of people involved (5 to 50 seats on average).
Our clients benefit from around the clock services at a fraction of their current operating costs (savings of 50% can be achieved). The return-to-focus concept provides a dramatic bottom line impact that can help positively transform the economies of any business (including small and medium enterprises) and increase the efficiency of transaction execution.
Amicorp Outsourcing Services ensures value by enhanced process management, high standard service levels and substantial cost savings!
<hr>
<div>
For further information, please contact: 

<h3>Hedde Plas</h3>
<a href="mailto:h.plas@amicorp.com">h.plas@amicorp.com</a> 
+31 20 578 8373
</div>
</div>]]>
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<guid>http://www.amicorp.com/AmiNews/2015/October/Partnering_with_Amicorp.php</guid>
<title>Partnering with Amicorp</title>
<link>http://www.amicorp.com/AmiNews/2015/October/Partnering_with_Amicorp.php</link>
<pubDate>30 Oct 2015 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[Offering the industry’s most efficient onboarding, white labelled and outsourced fiduciary services model to financial service firms. Amicorp is highlighting this release since it deals with the fundamental questions of how global financial institutions assess the future delivery of fiduciary services within the context of their broader wealth management offering.
<img src="http://www.amicorp.com/AmiNews/2015/October/PartWithAmic_Cover_Image.jpg" height="120" width="500" /> ]]></description>
<content:encoded>
<![CDATA[<div>
Brochure and independent research released
Offering the industry’s most efficient onboarding, white labelled and outsourced fiduciary services model to financial service firms.
Amicorp is highlighting this release since it deals with the fundamental questions of how global financial institutions assess the future delivery of fiduciary services within the context of their broader wealth management offering.
This represents more than a brochure or capability statement – it contains unique research conducted by Amicorp Institutional Sales and Scorpio Partnership (the global wealth management consultancy) on banks attitudes towards partnering, white labelling and outsourcing, providing an explanation of these three business models, and the strategic options and choices that banks face in terms of how to best deliver fiduciary services in the future.
The research covers:
<ul>
<li>Our commitment to partnering: onboarding and white labelling</li>
<li>Amicorp: offering the industry’s most efficient onboarding model</li>
<li>Amicorp’s unique experience and partnering capabilities</li>
<li>Partnering supported by independent research</li>
<li>Amicorp’s research-driven approach: “The Future of Trust”</li>
<li>Partnering: An increasing trend</li>
<li>The Onboarding process</li>
<li>Amicorp’s offering</li>
</ul>
Upon reading this, you will also appreciate why more than half of the top 10 global private banks choose Amicorp as their preferred services provider.
<div>Partnering supported by independent research
Recent independent research evaluating the future of the trust industry stretching beyond 2020 confirms the approach that Amicorp is taking. Partnering with Amicorp will complement the growth objectives of global private banks.
We have carried out extensive research (partly in association with the leading global wealth consultancy Scorpio Partnership) so that we can anticipate the future of the trust industry’s requirements through to 2020 and beyond. We have developed additional jurisdictions and increased our professional expertise in our constant commitment to service excellence in our outsourced operating model. This is designed to meet your needs in the changing global wealth industry.
</div>
Amicorp Institutional Sales are using this brochure and research at conferences and roundtables, so that given time constraints during sessions, participants will have most of their questions answered by reading this document, and can then continue the conversation with Amicorp.
The research can be downloaded <a href="http://www.amicorp.com/downloads/brochures/amicorp-ISU-partnering-with-amicorp-english.pdf" target="_blank">here</a>.
In addition our research has been further supported by the outcomes of the roundtables held this year with banking leaders in Singapore, Hong Kong, Miami, New York, Mumbai, Zurich and London, with Sao Paulo to be held later this year. You can read the summaries of the output of each roundtable discussion on the future for fiduciary services in the following Hubbis publications:
<ul>
<li><a href="http://www.hubbis.com/articles/pdf/1430302900.pdf" target="_blank">Hong Kong and Singapore</a></li>
<li><a href="http://www.hubbis.com/articles/pdf/1443487825.pdf" target="_blank">Mumbai</a></li>
<li><a href="http://www.hubbis.com/articles/pdf/1444122810.pdf" target="_blank">New York and Miami</a></li>
<li><a href="http://www.hubbis.com/articles/pdf/1448593409.pdf" target="_blank">Zurich and London</a></li>
</ul>
Amicorp's Institutional Sales unit employs all Amicorp business lines to create and deliver our solutions. We assemble the right team of professionals and coordinate the expertise of the entire Amicorp Group to bring these solutions to market.
<hr>
“I am proud to lead the Institutional Sales Unit and look forward to working with you in addressing your outsourcing and partnering requirements. I hope you enjoy reading about our global capabilities.”
<div>
For further information, please contact: 

<h3>Peter Golovsky</h3>
Global Head - Institutional Sales Amicorp Group 
<a href="mailto:p.golovsky@amicorp.com">p.golovsky@amicorp.com </a> 
+852 3105 9882</div>
</div>]]>
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<guid>http://amicorp.com/AmiNews/2015/October/benefit_sourcing_and_analyzing_services.php</guid>
<title>Benefit from Amicorp’s BPO Sourcing and Analyzing Services </title>
<link>http://amicorp.com/AmiNews/2015/October/benefit_sourcing_and_analyzing_services.php</link>
<pubDate>29 Oct 2015 13:00:00 GMT</pubDate>
<author>aminews@amicorp.com (Amicorp Aminews)</author>
<category>Amicorp Group - Aminews</category>
<description><![CDATA[Amicorp is specialized in the sourcing of data from various origins across the web, as well analyzing, translating and handling of this data into the required format.
<img src="http://www.amicorp.com/AmiNews/2015/October/benefit_sourcing_and_analyzing_services.jpg"
height="120" width="500" /> ]]></description>
<content:encoded>
<![CDATA[ <div>
<h2>Benefit from Amicorp’s BPO Sourcing and Analyzing Services</h2>
<div><img src="http://www.amicorp.com/AmiNews/2015/October/benefit_sourcing_and_analyzing_services.jpg" alt="Benefit from Amicorp’s BPO Sourcing and Analyzing Services"></div>
Amicorp is specialized in the sourcing of data from various origins across the web, as well analyzing, translating and handling of this data into the required format.
Today data is used to solve business problems, to innovate better than competitors and to generate higher profits. With data mining and data extraction services, Amicorp is able to extract information out of unstructured or structured data and integrate this data in clients’ systems. This ranges from legal data to financial data and each solution is tailored to client’s need.
By using automated scripts and/or manual searches, sourcing is executed and various data required by Amicorp’s clients is being collected. If required this data can be translated, further analyzed and extracted to be prepared in the format which is required by the client and the client’s systems.
Amicorp’s data team is prepared to handle data in a wide variety of languages, including languages from all major Asian countries, (Latin) American and some European countries.
In addition to these services, Amicorp offers a unique scanning service which combines years of technological innovation with manual checks and balances to obtain 100% recognition. The streamlined process of the scanning service offers significant benefits for processing volumes of documentation, such as financial documents like invoices and bank statements and other documents like legal documents and forms.
For the scanning of the financial documents, we offer standard connections with a broad range of accounting packages, including cloud solutions. If required the digitalized information can be completed with a booking proposal or an immediate booking.
Contracts can be labor or seat based, transaction based or even goal based. Unlike other service providers, Amicorp is able to offer tailored and personalized high quality services for clients looking at a limited number of people involved (5 to 50 seats on average).
Our clients benefit from around the clock services at a fraction of their current operating costs (savings of 50% can be achieved). The return-to-focus concept provides a dramatic bottom line impact that can help positively transform the economies of any business (including small and medium enterprises) and increase the efficiency of transaction execution.
Amicorp BPO ensures value by enhanced process management, high standard service levels and substantial cost savings!
<hr>
<div>
For further information, please contact: 

<h3>Hedde Plas</h3>
<a href="mailto:h.plas@amicorp.com">h.plas@amicorp.com</a> 
+31 20 578 8373</div>
</div> ]]>
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