TURKS & CAICOS Law and Practice Contributed by: David Stewart, Thomas Bucknall and Gareth Bathgate, Coriats Trust Company Limited
1. Tax 1.1 Tax Regimes The Turks and Caicos Islands has no direct taxation of any kind. 1.2 Exemptions The Turks and Caicos Islands does not levy any tax, therefore there are no tax exemptions. 1.3 Income Tax Planning The Turks and Caicos Islands does not have income tax. 1.4 Taxation of Real Estate Owned by Non- Residents In the Turks and Caicos Islands, a tax called stamp duty is payable on the purchase of property within the islands. This tax is payable by anyone purchas - ing property in the islands. The stamp duty rate is based on the island on which the property is being purchased and is in a range up to a maximum of 10% of the purchase price of the property. Most non-residents and non-citizens that own proper - ty in the Turks and Caicos Islands (TCI) utilise a com - pany when purchasing property rather than buying in their individual names as it is more administratively convenient and in certain scenarios may benefit from a lower applicable rate of stamp duty. 1.5 Stability of Tax Laws The Turks and Caicos Islands is a British Overseas Territory with a local parliament which has limited authority to raise taxes. So far, neither of the two politi - cal parties has ever indicated that they would impose taxation on the nation, and we think the chances of such a measure are very low. 1.6 Transparency and Increased Global Reporting The Turks and Caicos Islands are signatories to numer - ous TIEAs, the following being the most notable. • The TCI signed up to the Common Reporting Standard (CRS) regime as early adopters in 2017. Financial institutions within the TCI have until March 31st of each year to complete their CRS
reporting to the Financial Transactions Information Exchange (FTIE). • Financial institutions within the TCI have until June 30th to complete their Foreign Account Tax Com - pliance Act (FATCA) report and to file it with the FTIE. • The TCI has implemented the Economic Substance regime, and each company in the TCI has until March 31st to complete its reporting. • The Turks and Caicos Islands have a beneficial ownership register. At the moment, the register is not public. Companies have 14 days after incor - poration, registration or re-domicile to file with the Financial Services Commission the information regarding the beneficial owners of the entity. New regulation is expected, which would allow domes - tic and foreign law enforcement, anti-money laun - dering and anti-terrorism authorities access to the register, together with members of the public if they can prove a legitimate interest, such as journalists, academic researchers, civil society organisations focused on financial crimes, or persons pursuing a business relationship or transaction. It is expected that under the new regulation beneficial owners may apply to the Commission to restrict public disclosure of their ownership details, under specific and limited conditions. 2. Succession 2.1 Cultural Considerations in Succession Planning There are no notable cultural considerations in suc - cession planning. 2.2 International Planning The Turks and Caicos Islands is an attractive jurisdic - tion to structure in as there are robust statutory provi - sions preventing claims based upon forced heirship (see 2.3 Forced Heirship Laws ), divorce (in certain circumstances) and by creditors of settlors (see 4.1 Asset Protection ) after a very limited period. 2.3 Forced Heirship Laws The Turks and Caicos Islands does not have forced heirship laws and does not recognise claims brought under such laws.
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