TURKS & CAICOS Law and Practice Contributed by: David Stewart, Thomas Bucknall and Gareth Bathgate, Coriats Trust Company Limited
Coriats Trust Company Limited PO Box 171 82 Cherokee Road Providenciales Turks and Caicos Islands
Tel: +1 649 946 4800 Fax: +1 649 946 4850 Email: office@coriats.com Web: www.coriatshmsa.com
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 Pre-Immigration and Exit Planning As the Turks and Caicos Islands does not impose income tax, capital gains tax, inheritance tax, wealth tax or other direct taxes, there are no specific pre- immigration or exit tax planning regimes. In practice, however, individuals and families relocating to the Islands often undertake pre-immigration planning in their home jurisdiction, including the establishment or review of holding, trust and succession structures before becoming resident in the Turks and Caicos Islands. The jurisdiction’s tax-neutral environment and modern trust legislation can make it an attractive des - tination for internationally mobile families, although planning opportunities are typically driven by the tax laws of the individual’s former country of residence rather than by Turks and Caicos law itself.
1.5 Taxation of Real Estate Owned by Non- Residents and Non-Citizens 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, can shield some liabilities, and in certain scenarios may benefit from a lower applicable rate of stamp duty. 1.6 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 it is considered that the chances of such a measure are very low. 1.7 Transparency and Increased Global Reporting The Turks and Caicos Islands are signatories to numerous Tax Information Exchange Agreements (TIEAs), the following being the most notable. • The TCI signed up to the Common Reporting Standard (CRS) regime as early adopters in 2017.
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