July 9, 2013 | having difficulty Viewing this email? view THE online version

STM Group

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Tax-News.com carries topical headlines and features on international tax, legal, economics, business and investment issues.

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Topical Focus - US Tax Reform Update

A recent survey of senior tax professionals in the United States ranked potential US corporate tax reform alongside tax authorities’ more rigorous pursuit of transfer pricing cases as the top global tax concern facing companies. This feature outlines just why this is the case.

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Latest Tax-News

Switzerland, China Ink FTA

Swiss Federal Councillor Johann Schneider-Ammann and Chinese Commerce Minister GAO Hucheng have recently signed the bilateral free trade agreement between Switzerland and China in Beijing.
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EU, US Trade Talks Get Under Way

Around 150 negotiators in 24 working groups are currently taking part in the first round of talks toward a Transatlantic Trade and Investment Partnership agreement between the US and the European Union.
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Bowen Talks Australian Tax Reform

Australia's new Treasurer has said that there is a case for an ongoing discussion about tax reform.
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IMF IMU Support Raises Italian Hackles

The concluding statement of the International Monetary Fund Mission, after its recent 2013 Article IV Consultation with Italy, recommended the retention of the property tax on primary residences, and was then immediately faced with the anger of those Italian politicians looking for its abolition.
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OECD To Recommend G20 Anti-Evasion Action

The Organization for Economic Cooperation and Development will urge the G20 group of nations to agree on amendments to international tax rules within the next two years, according to reports.
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The Multi-jurisdictional QROPS solution

Following HMRC's comprehensive clean-up, the QROPS market has been left with two key players: Malta and Gibraltar. STM Group was one of the first multi-jurisdictional QROPS providers, and in its position as a provider of schemes in both jurisdictions, believes that between them, these jurisdictions cover all your QROPS needs.

With over 70 Double Taxation Agreements (DTAs), Malta has emerged as the number one jurisdiction of choice for advisers and clients. Malta maintains a strong relationship with the UK tax authorities and boasts a stable jurisdiction, EU membership, and has English as one of its official languages.

Gibraltar shares many of these plus points. Also English-speaking, Gibraltar came out of talks last year with a clean bill of health as an HMRC recognised jurisdiction. Consequently, Malta and Gibraltar are now able to complement each other and provide a QROPS solution which is most suitable for your client.

As comprehensive as the Malta DTAs are, if there is no agreement between Malta and the client's country of residence, they could be charged up to 35% tax withheld at source in Malta. In this scenario, Gibraltar, where withholding tax is just 2.5%, appears to be the more obvious choice.

So with all requirements covered by either one or the other jurisdiction, plus the fact that STM Group offers a fee-free QROPS transfer between jurisdictions should circumstances change (for example if your client takes a Malta QROPS, but in time decides to move to a new country of residence which doesn't share a DTA with Malta), your client needs simply to decide on their pension priorities.

Ultimately, country of residence (and consequent taxation) plays the largest part when choosing between Malta and Gibraltar for your client's QROPS.

For more information, please contact:

E: pensions@stmfidecs.gi
T: 00350 200 45877
W: www.stmfidecs.gi

E: pensions@stmmalta.com
T: 00356 213 33211
W: www.stmmalta.com