Offshore Background | Turks and Caicos Islands
The Turks and Caicos Islands (the Islands, the TCI) are an intentional “offshore finance centre” specifically created by Britain following a UK government-sponsored study in 1970. Unlike some of the other Caribbean islands, such as Bermuda or the Bahamas, which just grew into tax havens, the Government of the TCI, with the encouragement and assistance of the British Government, set out to create “the best offshore finance centre in the world”. They subsequently enacted legislative measures to implement the infrastructure necessary to support this aim, including specifically crafted laws on confidentiality, banking, insurance, trusts, companies and limited partnerships.
Key benefits of the TCI include:
- No direct taxes – there are no taxes on personal or corporate income, profits or assets. There are no capital gains taxes, nor withholding taxes.
- Confidentiality – there is legislated bank and commercial secrecy with some of the most severe penalties to be found in any tax haven for breaches of confidentiality. Non-payment of tax in another country is not considered an offence which would require a company or bank to share client information with another jurisdiction’s tax authorities
- No tax treaties – there are no tax treaties with other countries, thus protecting privacy from foreign tax authorities.