10.04.2019. Legislation changes in offshore jurisdictions
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Starting from 2018 and now there have been a lot of political pressure on offshore jurisdictions and legislation is changing so often that it is becoming very difficult to make a long term business plans in such jurisdictions. It is predicted that more amendments will follow. Here we prepared the summary of amendments made in Belize, BVI and Seychelles Acts.

Belize

From the beginning of this year there are in force changes in  International Business Companies Act in Belize, which declares that it is mandatory for every Belize  company exclude “pure equity holding companies” to prove “economic presence” in Belize. Criteria which prove the economical presence in this jurisdiction relate with the company management, rented office and employees.

“Pure equity holding companies” are companies, which hold only the shares of other companies and whose income is derived only from dividends and capital gains.

For companies registered till 16.10.2017. there are transition period in Belize till 30.06. 2021 in order to make companies to comply with the given requirements.

The latest legislation related with Financial service providers was passed on March 12 and

waiting guidelines that explain made changes in IBC Act in Belize, so, we are going to follow this procedure and inform you.

BVI

Also in BVI from the beginning of 2019 there are requirements to prove the physical presence in the jurisdiction according to the identical criteria mentioned above in the Belize.

The requirements are in force for companies having any of the following activities:

  • banking business
  • insurance business
  • fund management business
  • finance and leasing business
  • headquarters business
  • shipping business
  • holding business
  • intellectual property business
  • distribution and service centre business

There is a time till 01.06.2019 for existing company owners to comply with the legislation changes but till now there are not published guidelines about procedure. We will follow the updates and inform you.

Seychelles

In Seychelles there have been made changes twice last year in International Business Companies Act.

The first changes resulted with following:

  • directors registers registration period was prolonged till 01.12. 2018;
  • penalty for delay now USD 500 plus USD 25 for each day of non-compliance with the obligation to file the Register;
  • register of directors made not public;
  • Registered agent can restore a company if it struck off for 7 years;
  • the Court can restore company if it struck off for 12 years.

The second changes in December 2018 have been made in order to minimize the differences between Seychelles IBC and resident companies:

  • restrictions about activity in Seychelles and ownership/rent of real estate for IBC’s have been cancelled, so now IBC can do a business activity in Seychelles, as well as own and rent a real estate in Seychelles;
  • if the company is doing business in Seychelles, such company will be obliged to pay business tax, that is 15% from  deriving income within Seychelles.
  • as previously company in Seychelles is not paying taxes from incomes earned

Seychelles now has entirely turned back to territorial principle of taxation.

When the Seychelles company  receives a taxable income, it should within a month from the moment when received the first income notify the Registry in written about receiving it and about the activity for which received income. Also within a year after receiving the first taxable income, a company should file the annual report, audited financial statement as local companies.

Also there have been amendments to Business Tax Amendment Act  where are included changes in territorial principle of taxation in Seychelles for all Seychelles  companies. Income received by Seychelles company is considered as an  income by origin in Seychelles, if income received from:

  • activity carried out in Seychelles,
  • sales of goods situated in Seychelles,
  • realization of intellectual property owned by Seychelles company

It is important that if IBC does a part of its business in Seychelles, it as a local company should receive a tax number, pay for this part of income taxes and file the reports in Seychelles.

As there are so many changes made and we predict that more amendments will come, we will be following the latest updates and will keep you informed.

28.03.2019. Payment companies are entering the market more and more
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Nowadays because of banks’ restrictions opening a bank account is becoming more challenging and bank commissions are rising, people are using more smart phones and payment systems, that are developing very fast, in Hong Kong called as „technological company for payment services”. Payment company is a legal entity, owning a licence in a country, where the head office is located, that allows to manage client funds by opening accounts, processing payments and issuing Visa or MasterCards.

Payment system advantages:
1) fast account opening – for legal and physical entities (restrictions may apply for countries, where the legal entity is registered), including identification, address confirmation document filing, business description and legal document copy filing.
2) easy to use payment system for receiving and processing payments using smart phone
3) easy and fast debit card booking procedure

Disadvantages:
1) no guaranteed sum till EUR 100 000 as for all EU banks in situation of insolvency
2) limited payments outside European Union
3) limited payment transactions in other currencies apart from EUR
4) could be restrictions for the maximum amount for payment transaction, monthly limits

We collaborate with following payment systems:

1. Paysera – fast growing Lithuanian company, operates since 2011 and provides money transfers to more than 180 countries in over 30 currencies. Paysera opens accounts for companies registered in the countries with opened Registers. In 2018 their clients have made more than 1,87 million money transfers for total amount of 3,9 billion euros. Paysera’s incomes in 2018 was 9,7 million euros, that is for 2,1 million euros more than in 2017.
www.paysera.com

2. Fire Financial Services – company from Ireland, that operates since 2010. Fire helps businesses to manage payments with digital accounts and debit cards, in sterling and euro currencies. Fire opens accounts for companies which businesses are related to UK or Ireland.
www.fire.com

3. Cardpay – Cyprus company, established in 2009, is a member of MasterCard, Visa and Union Pay International. Cardpay offers online payments, payment cards, and provision of related corporate accounts to manage funds. Cardpay opens accounts for companies related with e-commerce, software development, FinTech or other „Next Big Thing”- like businesses.
www.cardpay.com

 

28.03.2019. Hong Kong – the best international financial centre
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According to the survey where participated 800 industry professionals in the corporate services industry globally,Hong Kong has been ranked as the top international financial center in 2018.

Hong Kong offers a variety of financial products and services with vastly integrated institutions and markets. Its financial markets are highly liquid and operate within a set of effective and transparent regulatory standards. Hong Kong’s government works to maintain a stable and business-friendly environment, with no barriers to foreign business and no restrictions on capital flows.

The British Virgin Islands (BVI) and the UK are the  next most popular jurisdictions followed by the US and Singapore. Recently it has been noticed a decline in demand for certain offshore jurisdictions such as the BVI and Cayman Islands due to uncertainty driven by the European Union. BVI recorded growth in new incorporation volumes, with 11.2% in the first nine months last year.Globally there has been an increase in demand for transparency due to the negative publicity towards offshore centers.

14.03.2019. European Union expands tax blacklist
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On 12th of March European Union included these 10 countries in the list of non-cooperative tax jurisdictions: Aruba, Barbados, Belize, Bermuda, Dominica, Fiji, the Marshall Islands, Oman, the United Arab Emirates, and Vanuatu. These jurisdictions did not implement the commitments they had made to the EU regarding their tax regimes by the agreed deadline.

The last revision, in November 2018, left just five countries on the list: American Samoa, Guam, Samoa, Trinidad and Tobago, and the US Virgin Islands. The EU said that no commitments have been made by these five countries since the blacklist was first adopted.

EU has moved several jurisdictions to its “grey list” of countries that are cooperating with the EU to reform their tax policies. 34 territories remaining on the grey list: Albania, Anguilla, Antigua and Barbuda, Armenia, Australia, Bahamas, Bosnia and Herzegovina, Botswana, British Virgin Islands, Cabo Verde, Costa Rica, Curacao, Cayman Islands, Cook Islands, Eswatini, Jordan, Maldives, Mauritius, Morocco, Mongolia, Montenegro, Namibia, North Macedonia, Nauru, Niue, Palau, Saint Kitts and Nevis, Saint Lucia, Serbia, Seychelles, Switzerland, Thailand, Turkey, and Vietnam.

28.02.2019. BBP accountancy services
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Starting from 1st of February 2019 we are offering to our clients and non clients accountancy services for Latvian and as well foreign companies.

We will provide accountancy services to companies also that are not registered by us. We are offering competitive prices, high quality service and excellent customer service in compliance with our company’s policies which provides individual approach to every client.

Our accountants are high level professionals with many years experience in banking and other sectors and will be able to inform you about all the aspects and details of the provided service.
First consultation is free of charge – please book an appointment with our specialists to discuss our potential collaboration!