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Agreement on Processing of Personal Data CZ / EN

St. Vincent and the Grenadines

  • Saint Vincent or Saint Vincent and the Grenadines is a small Caribbean tax haven that lies in the Lesser Antilles islands. As a tax haven in which offshore companies are founded, Saint Vincent is especially used for anonymity of ownership and high-quality offshore banking services. The capital of Sv. Vincent is Kingstown. The official language is English. Currency Sv. Vincent: East Caribbean Dollar (ECS) firmly fixed to the US dollar at a rate of 2.70 ECS / USD 1.

    Beware of the novelty – there have been several legislative changes regarding the taxation of International Business Companies (IBCs) in this jurisdiction. With effect from 1 January 2019, all new IBCs will be taxed at a rate of 30% of global income (ie revenue earned in St. Vincent and the Grenadines and outside of St. Vincent and the Grenadines).

    IBCs established before January 1, 2019 will continue to be exempted until 2021. The reason for the changes is that the European Union has warned that St. Vincenc and the Grenadines may rank blacklist unless some tax changes are made by 31 December 2018.

    In order to avoid blacklisting, it was required to tax the IBC at a similar or equal tax rate as a local company, which is 30%.

    Saint Vincent and the Grenadines are now taxing the IBC’s worldwide revenues, but it was generally expected that this jurisdiction would pass to the territorial taxation system, not only taxation of income earned in the jurisdiction and the exemption of non-jurisdictional income. IBCs obtaining their income outside the jurisdiction would remain exempt from tax. However, the government has decided to postpone the transition to the territorial taxation system at a later time.

     

    Description and Benefits of Offshore Company from St. Vincent

    • offshore companies are on St. Vincent exempted from income taxes for 25 years from its inception
    • just the only director of the offshore company, which can be a physical or a legal person
    • offshore company type – IBC
    • no statements or tax returns are submitted
    • IBC of St. Vincent can be controlled and controlled from anywhere in the world
    • offshore IBCs are allowed to issue bearer shares, but they cannot leave the territory of St. Vincent
    • unlimited IBC share capital
    • offshore IBC has no investment restrictions outside the purchase of real estate in Saint Vincent that is not allowed

     

    International Treaties

    International Conventions against Money Laundering and the Financing of Terrorism – Saint Vincent and the Grenadines have signed these treaties. The practical significance of these agreements for company owners is particularly the case of suspicion of money laundering or terrorist financing by the IBC company at Sv. Vincent and its registration agent can pass on the personal data of the persons participating in the company and a basic description of its activities to its superior authorities, which will move further in international assistance, eg to the Czech Republic.

    Double Taxation Agreement with the Czech Republic – Not concluded. Direct payments from the Czech Republic to Sv. Vincent and the Grenadines are subject to withholding taxes. IBC offshore company from Saint Vincent is not suitable for the direct sale of goods or services to the Czech Republic.

    Agreement on exchange of tax information with the Czech Republic – The contract is not concluded – higher degree of anonymity of the IBC offshore company’s ownership of Sv. Vincent.

    Multilateral Council of Europe Convention on Mutual Administrative Assistance in Taxation – Issue is not finished – higher degree of ownership anonymity.

     

    Methods of using offshore company from St. Vincent and the Grenadines

    • holding (parent company) of another company for the purpose of anonymity of ownership
    • direct sale of goods or services where there is no need to use the system of double taxation treaties and there is no risk of withholding taxes eg in cases where payments do not flow directly from the Czech Republic
    • offshore banking and international financial transactions
Contact
Tetragrammaton a.s.

Žitná 562/10
120 00 Praha 2 – Nové Město

+420 777 025 554
+420 777 775 524

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Agreement on Processing of Personal Data CZ / EN

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