Hong Kong has signed an agreement with Ireland to allow the automatic exchange of financial account information in tax matters from 2018.
The move brings the number of Hong Kong’s tax data exchange partners to 12. The other partners are Belgium, Canada, Guernsey, Italy, Japan, Korea, Mexico, the Netherlands, Portugal, South Africa and the UK.
Last week we took part in the annual ABLV bank partners conference where the bank representatives introduced us with the latest news and updates. We summed the ones that might be interesting for you.
ABLV bank offers outgoing payments in new currencies: UAE dirham (AED), New Zealand Dollar (NZD) and South African Rand (ZAR). Additional fee of USD 10 applies to incoming payments in USD where the amount of a payment is more than USD 100,000, save for payments from ABLV Luxemburg AG.
COO Roman Surnacov explained new rules related to FORWARD deals
- all FORWARD deals to be accounted for in one portfolio,
- all settlements to be made through a single multicurrency margin account,
- amargin represents a sum of the margin account balance and mark-to-market results in respect of all deals,
- margin requirements common for all currencies – margin to the total amount of all deals ratio:
– Initial Margin — 5%
– Maintenance Margin — 2%
– Stop Loss — 1%.
The bank representatives also explained certain issues related to financing secured by pledge of investment portfolio in GBP and CHF. Such financing may be used to increase investment portfolio or to receive funds for day-to-day activities, with no need to sell financial instruments. Financing procedure in new currencies is absolutely similar to the current procedure in USD, EUR and RUB.
Also, there were some interesting updates for those clients of school age. Now the minimum age to open a card account and get a payment card is 7 (instead of 13 as it was before). Savings for children are available in two forms: Investment Portfolio, where you can acquire shares in ABLV mutual funds and then transfer them to your child, or Savings Account for your child.
13 April 2017, the new Trusts Registration Service provided a single online route for trusts and estates to comply with their registration obligations.
All trusts with a UK tax consequence will need to be registered. Also, trustees must ensure and confirm the Trust Register is accurate and up to date. Trustees will need to update the register each year that the trust generates a UK tax consequence.
Any new trusts with a UK tax consequence will be required to use the registration service to obtain a unique taxpayer reference (UTR). The register will ask for details of the trust assets including address(es) and values, the identity of the settlor, trustees, protector (if any), all other persons exercising effective control over the trust (if any) and the beneficiaries or class of benficiaries.
The project is being delivered through a number of phases and initially only lead trustees or personal representatives will be able to use the Trusts Registration Service. Agents will be able to register a new trust before October 2017. The ability to update a trust that has registered on the Trusts Register will also be introduced in the autumn.
25 April 2017, as a result of Prime Minister Theresa May’s surprise call for a snap General Election on 8 June, the government significantly reduced the finance bill 2017. Among the clauses removed were all the provisions effecting changes to the taxation of non-UK domiciled individuals and non-UK resident trusts, as well as the controversial plans to increase probate fees.
The legislative changes to the taxation of non-UK domiciled individuals and non-UK resident trusts were intended to be retrospective so the provisions are expected to be re-tabled when a new government is formed after the General Election, with Royal Assent given later in the year.
A new government may take a different view of the legislation, but both main parties generally supported the new rules.
Regarding tax advantages Cyprus company can be used as:
Cyprus holding company
Cyprus Holding Company for non-EU countries
Cyprus trading company
Cyprus IP/ Royalties Company