SOVEREIGN REPORT 47 Bahamas, Bahrain, British Virgin Islands, Cayman, China, Curaçao, Cyprus, Dubai, Gibraltar, Guernsey, Hong Kong, Isle of Man, Malta, Mauritius, Portugal, Seychelles, Singapore, South Africa, Switzerland, The Netherlands, Turks & Caicos Islands, United Kingdom. CONTENTS Introduction Americas & The Caribbean Fiscal News In the Press Contact & Info 3 4 7 9 11 13 16 18 19 Europe Middle East & Asia Legal News Sovereign Man AT A GLANCE EUROPE AMERICAS / THE CARIBBEAN MIDDLE EAST / ASIA UK targets second-home owners in St. Lucia opens new Citizenship-by- Hong Kong again ranked as world’s 4 Autumn Statement 6 Investment scheme 9 freest economy 4 Sovereign Malta pensions to offer Cayman islands to introduce Limited 9 China and Singapore to enhance “flexi-access” drawdown 6 Liability Companies Free Trade Agreement Cyprus plans to amend Intellectual BVI introduces requirement to file a Invest HK assists record number 5 Property tax regime 7 Register of Directors 10 of foreign companies Swiss Senate votes for automatic US extends FATCA IGA information 10 China confirms drive to replace 5 exchange of tax information 7 exchange deadline Business Tax with VAT ® The Sovereign Group 2015 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of The Sovereign Group. The information provided in this report does not constitute advice and no responsibility will be accepted for any loss occasioned directly or indirectly as a result of persons acting, or refraining from acting, wholly or partially in reliance upon it. Sovereign Trust (Bahamas) Limited is licensed as a Financial Corporate Service Provider – Licence No: 153 / File No. 157. Sovereign (Cayman) Limited is licensed by the Cayman Islands Monetary Authority with a companies management. Licence No. 558456. Sovereign Trust (Gibraltar) Limited is licensed by the Financial Services Commission of Gibraltar – Licence No: FSC 00143B. Sovereign Asset Management Limited is authorised by the Financial Services Commission of Gibraltar to conduct investment business. Sovereign Insurance Services Limited is authorised by the Financial Services Commission of Gibraltar as a general and life insurance intermediary. Sovereign Trust (Channel Islands) Limited is licensed under a Full Fiduciary Licence by the Guernsey Editor Christopher Owen Financial Services Commission. Reference No: 2005108. Sovereign Trust (Isle of Man) Limited is licensed by the Isle of Man. Financial Supervision Commission as a Corporate Service Provider. (Licence No. 43,215) and as a Trust Service Provider (Licence No. 43,521). Sovereign Trust (Malta) Limited is licensed by the Malta Financial Services Authority as a Trust Service Provider (Licence Design Alison Tan no. C26143) and as a Retirement Scheme Administrator under Sovereign Pension Services Limited. (Licence no. C56627). Sovereign Trust (Mauritius) Limited is licensed as a Management Printer Asia One Printing Company. Licence No. Mc00006831. Sovereign Trust (Netherlands) BV is licensed as a Trust Company by De Nederlandsche Bank (DNB). Sovereign Trust (Seychelles) Limited is licensed by the Seychelles International Business. Authority. Licence No. ICS056. Sovereign Trust (TCI) Limited is licensed by the Financial Services Commission of the Turks & Caicos Islands. Licence No. 029. Artwork Harry Harrison Introduction Europe Americas & Middle East & Fiscal News Legal News In the Press Sovereign Man Contact + Info The Caribbean Asia INTRODUCTION The Sovereign Art Foundation collaborated with Thai-based artist studio StudiOK, led by artist Ravin Rawanwhcaikul, to create an interactive booth at Art Central full of activities for adults and children alike. of professionals and practitioners who The “Panama Papers” Sovereign acquires UK- are intent on creating the pre-eminent The release of the so-called “Panama based SIPPs specialist “healing through art” programme in Hong Papers” – all 11 million of them – has Kong, alongside our own newly expanded team of art teachers. once again turned the press spotlight on I am delighted to announce that Sovereign to the offshore finance industry and many has acquired MW Pensions Ltd (MWP) a politicians (at least those not mentioned In a very exciting first time collaboration UK-based and regulated business that with internationally-renowned Thai artist in the “Papers”) have rushed to comment provides a range of well-regarded Self- and criticise. But most of the commentary Navin Rawanchaikul and Chiang Mai- Invested Personal Pension (SIPP) and based StudiOK, SAF recently offered Art has been off the mark and fundamentally Small Self Administered Scheme (SSAS) misunderstands how things work. Central Hong Kong visitors the chance products. MWP will change its name to to hang out in its art-inspired activity Sovereign and continue to service its booth. Activities included the decorating Whilst it appears that the firm in question existing client and introducer base from was not applying the international of postcards, which were then sent to its offices in the North West of England. children attending the Ta-luk Elementary standards of transparency and due MWP’s sister operation in the Isle of Man, diligence, the exposure of its clients School in Chiang Mai, as well as the SIPP Specialists Ltd., will also be acquired chance to be painted into a live wall mural, has simply been brought forward by a as part of the deal. year. Just a few weeks ago, the OECD tale part in a curated art treasure hunt, told G20 Finance Ministers that Panama and a host of other activities inspired by Sovereign has developed into a market having fun with fabric. was back-tracking on its commitment to leader in the transfer and provision automatic exchange of financial account of pension schemes and retirement information and described it as “the last planning is now one of our core product Sovereign News major holdout that continues to allow offerings. Adding a SIPP operation in the funds to be hidden offshore from tax and UK makes sense for our Group. While As some readers may already be aware, law enforcement authorities.” most UK non-residents say they won’t our Head of Group Sales John Hanafin, return to the UK, the reality is that many has departed Sovereign to join one of our By the end of next year, the OECD’s do. Sovereign can now offer a one-stop- very good customers, Arton Capital. For Common Reporting Standard (CRS) will shop for their retirement planning needs. John this was an opportunity too good to have been introduced – 96 jurisdictions We offer free transfers within our range miss and, although he will leave a big gap, (and counting) will introduce automatic of QROPS products and that will now be we hope and expect this move will benefit exchange of financial account information extended to our SIPP offering. both us and Arton Capital in the future. within the next two years. This will require We are very grateful to John for all his all financial institutions – banks and work over the last 10 years. offshore service providers – to exchange SAF collaborates with information about anybody and everybody Also, congratulations go to Johannesburg- that does business with them who is not StudiOK at Art Central based Richard Neal on his appointment resident in their own jurisdiction. as Director of Sovereign Trust (South The Sovereign Art Foundation (SAF) has Africa) Ltd. We wish Richard well in this CRS does not mean that offshore struct- focused on developing its Make It Better new role. ures will no longer be effective or useful. programme in 2016 so as to reach more But we have been telling clients for years underprivileged communities in Hong that if they cannot afford to have the Kong than ever before. details of their arrangements revealed to their home tax authority, they should not SAF is now working with the University be doing it. A tax offence only occurs if the of Hong Kong’s expressive arts therapy taxpayer signs an incorrect tax form. See students, together with experienced Howard Bilton the full article on Page 14 of this issue. charity partners and a diverse group Chairman of the Sovereign Group page 3 Introduction Europe Americas & Middle East & Fiscal News Legal News In the Press Sovereign Man Contact + Info The Caribbean Asia EUROPE UK targets second-home owners in The Finance Bill 2016 draft clause 43, introducing the IHT changes, was published on 9 December 2015. In addition Autumn Statement to the shortened period for deemed domicile, a new rule is introduced whereby a person born in the UK with a UK Chancellor George Osborne, delivering his Autumn UK domicile who has since acquired a domicile of choice Statement to Parliament on 25 November 2015, announced that elsewhere will be treated as UK-domiciled for IHT purposes higher rates of stamp duty land tax (SDLT) will be charged from if they are resident in the UK in at least one out of the two 1 April 2016 on purchases of “additional” residential properties previous tax years. above £40,000 such as buy-to-lets and second homes. Draft legislation extending the deemed domicile rules for The higher rate will be 3% above current rates, at every band, income tax and CGT was published on 2 February 2016. taking the top rate band to 15% for properties above £1.5 million. Under the legislation non-doms will likewise be deemed UK- By providing a disincentive for investors purchasing additional domiciled for income tax and CGT if they have been resident properties, the measure is intended to assist first-time buyers. in the UK for 15 out of the previous 20 years. As a result, The surcharge will not apply to corporates and funds owning from 6 April 2017, the £90,000 remittance basis charge (first more than 15 residential properties.