Private Client Comparative Guide

• Published date: 01 July 2021
• Subject Matter: Family and Matrimonial, Wills/ Intestacy/ Estate Planning
• Law Firm: Coriats Trust Company Limited
• Author: Mr Christopher Coriat and David Stewart

1 Legislative framework

1.1 Which legislative provisions govern private client matters in your jurisdiction?

English common law and equity apply, as modified by Turks and Caicos Islands (TCI) legislation. Ordinances (TCI statutes) applicable to private client matters include the following:

• the Trusts Ordinance 2016;
• the Companies Ordinance 2017;
• the Companies and Limited Partnerships (Economic Substance) Ordinance 2018;
• the Confidential Relationships Ordinance;
• the Proceeds of Crime Ordinance and subsidiary legislation;
• the Wills Ordinance;
• the Inheritance (Family Provisions) Ordinance;
• the Intestacy Ordinance;
• the Probate and Administration Ordinance and Probates (Re-Sealing) Ordinance;
• the Overseas Judgments Ordinance;
• the Immigration Ordinance;
• the Registered Land Ordinance; and
• the Stamp Duty Ordinance.

1.2 Do any special regimes apply to specific individuals (eg, foreign nationals; temporary residents)?

There is no restriction on the ownership of real estate by foreign nationals or non-residents.

Temporary or permanent residence in the TCI may be acquired, with or without the right to work, on the basis of investment.

1.3 Which bilateral, multilateral and supranational instruments in effect in your jurisdiction are of relevance in the private client sphere?

• The US Foreign Account Tax Compliance Act (Model 1 IGA UK and US);
• The Common Reporting Standard;
• Tax information exchange agreements with various countries; and
• Mutual legal assistance treaties with various countries.

See www.gov.tc/eoi/ for further information.

2 Taxation

2.1 On what basis are individuals subject to tax in your jurisdiction (eg, residence/domicile/nationality)? How is this determined?

The Turks and Caicos Islands (TCI) has no direct taxes. Tax revenue is derived from indirect taxes, including taxes on imports and consumption.

2.2 When does the personal tax year start and end in your jurisdiction?

Not applicable.

2.3 With regard to income: (a) What taxes are levied and what are the applicable rates? (b) How is the taxable base determined? (c) What are the relevant tax return requirements? and (d) What exemptions, deductions and other forms of relief are available?

(a) What taxes are levied and what are the applicable rates?

None.

(b) How is the taxable base determined?

Taxes apply to goods and services, not to individuals.

(c) What are the relevant tax return requirements?

None.

(d) What exemptions, deductions and other forms of relief are available?

Not applicable.

2.4 With regard to capital gains: (a) What taxes are levied and what are the applicable rates? (b) How is the taxable base determined? (c) What are the relevant tax return requirements? and (d) What exemptions, deductions and other forms of relief are available?

(a) What taxes are levied and what are the applicable rates?

None.

(b) How is the taxable base determined?

Not applicable.

(c) What are the relevant tax return requirements?

None.

(d) What exemptions, deductions and other forms of relief are available?

Not applicable.

2.5 With regard to inheritances: (a) What taxes are levied and what are the applicable rates? (b) How is the taxable base determined? (c) What are the relevant tax return requirements? and (d) What exemptions, deductions and other forms of relief are available?

(a) What taxes are levied and what are the applicable rates?

None (there is a nominal probate tax).

(b) How is the taxable base determined?

Not applicable.

(c) What are the relevant tax return requirements?

None.

(d) What exemptions, deductions and other forms of relief are available?

Not applicable.

2.6 With regard to investment income: (a) What taxes are levied and what are the applicable rates? (b) How is the taxable base determined? (c) What are the relevant tax return requirements? and (d) What exemptions, deductions and other forms of relief are available?

(a) What taxes are levied and what are the...