May 14, 2013 | having difficulty Viewing this email? view THE online version
STM Group

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Latest Tax-News

ASEAN Holds First Round Of RCEP Talks

The Association of Southeast Asian Nations member states - Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam - and its free trade agreement partners - Australia, New Zealand, Japan, China, India and South Korea - recently met in Brunei to start detailed negotiations on the Regional Comprehensive Economic Partnership.
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Osborne Calls For G7 Anti-Avoidance Action

The UK is determined to make progress on tackling tax avoidance and evasion during its presidencies of the G7 and G8 groups of nations, Chancellor George Osborne has said, stressing that "tax that is owed must be paid."
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Liechtenstein Set For Talks On Automatic Information Exchange

Underlining the commitment of the new Liechtenstein Government to pursuing a white money strategy, Prime Minister Adrian Hasler made it clear that the Principality is "open" to the idea of an automatic exchange of information and is willing to enter into talks.
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Hungary Ready To Raise Taxes

Hungary's Minister of National Economy, Mihály Varga, has indicated that the Government is prepared to raise special taxes on banks, the tax paid by energy suppliers, and the financial transactions tax, should other measures to ensure the lifting of the European Commission's excessive deficit procedure prove insufficient.
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NZ To Address FATCA Compliance Cost Concerns

The New Zealand Government has said that it is aware of compliance concerns regarding the Foreign Account Tax Compliance Act tax information exchange agreement currently being negotiated with the US.
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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:

T: 00350 200 45877

T: 00356 213 33211