APRIL 16, 2013 | having difficulty Viewing this email? view THE online version
STM Group

Latest Tax-News

Indian Aims For Better Taxpayer-Authority Relationship

Indian finance and revenue ministers have been discussing the role of the reconstituted Central Direct Tax Advisory Committee, with P. Chidambaram stressing that it must improve taxpayer services and relations.
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HMRC Publishes GAAR Guidance

HM Revenue and Customs has published guidance which courts will be required to take into account when considering cases brought in relation to the UK's new General Anti-Avoidance Rule.
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Iceland Signs Europe's First FTA With China

A bilateral free trade agreement between Iceland and China was signed on April 15 in Beijing by Ossur Skarpheoinsson, Minister for Foreign Affairs and External Trade of Iceland, and Gao Hucheng, China's Minister of Commerce, and witnessed by the Chinese Premier Li Keqiang and Iceland's Prime Minister Johanna Sigurdardottir.
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Global Forum Gives Singapore A Pass Mark

The Ministry of Finance has disclosed that the Global Forum on Transparency and Exchange of Information for Tax Purposes has affirmed that Singapore's exchange of information regime is in line with the internationally-agreed standard.
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US Corporates Receive USD181bn In Tax Breaks

With the United States Congress re-examining tax expenditures used by corporations as part of reforms that could reduce the current 35% corporate tax rate, the Government Accountability Office reported that an estimated 80 tax expenditures resulted in the Administration forgoing corporate tax revenue totaling more than USD181bn in 2011.
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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

Tax-news.com 2013 | info@tax-news.com