Samoa

Samoa is a small and remote independent state in the western part of the Samoan Islands in Polynesia. It is currently one of the most versatile jurisdictions for establishing an offshore company. The local offshore legislation is primarily set up for strong and flexible asset protection. As with traditional offshore jurisdictions, Samoan companies benefit particularly in their role as an offshore shareholder or asset management company.

The main advantages of setting up a company in Samoa

• Political and economic stability,
• quality infrastructure,
• a well-developed legal system for offshore corporations,
• zero taxation of profits (including capital gains),
• zero taxation of banking transactions,
• absence of foreign exchange controls and regulation.

The offshore company registered in Samoa is one of the strongest asset protection structures in the world. This is because the International Companies Act 1987 allows a member of a company to decide to transfer a business interest to another person on the occurrence of a certain event. This event may be, for example, a court order, expropriation, or other qualifying event. The company can thus immediately transfer ownership to another person if necessary. An example is where a foreign court issues a seizure order, which the company may consider a specific event and may immediately transfer ownership of the company to another person.

The local government also allows to reduce the administrative costs of running the company by prepaying the renewal of the company for several years.

As is common in other jurisdictions, a company incorporated in Samoa must have at least one shareholder and at least one director. Samoa does not have a public register of companies, the company does not pay taxes or keep accounts, auditing is optional and the general meeting can be held anywhere in the world.

In 2012, new legislation came into force in Samoa that introduced a new type of entity within international companies – Special Purpose International Companies (SPICs). SPICs are a kind of hybrid form of company that combines elements of a company and a foundation. This company must have directors but has no shareholders. All companies owned by a SPIC therefore have no legal owner and are therefore suitable for asset protection. This type of company is unique and as such has led to the development of Samoa as a tax haven.

Samoa is a popular tax haven for Asian countries, particularly China, Hong Kong and Taiwan. Its popularity is evidenced by the fact that last year $1 billion was invested in China through Samoan registered companies, making Samoa the tenth largest source of foreign direct investment in China.

Although Samoa is a relatively unknown tax haven in Europe, Asian companies have long enjoyed its benefits. This trend is set to continue, making Samoa more attractive to European clients, who will gain better access to the benefits offered by this tax haven.