Nicole Shamier Chief Economist St Helena

Transcript:Nicole Shamier Chief Economist St Helena:
Nicole Shamier Chief Economist St Helena Government May 2020 Draft Company Registry Policy Principles St Helena Government, in developing its Company Registry, follow the principles of: Openness and transparency Sound Business Practice Non-discriminatory taxation Anti-tax avoidance www.cr.gov.sh Objectives of the Policy Broadening the St Helena taxation base Becoming a ‘fair tax’ jurisdiction and possible tax raising options Compliance with international standards of company administration and financial services administration, including substance and transparency initiatives Effective regulation of Company Registry within St Helena Enactment of legislative changes required to achieve the policy. Current Issues Lack of ability to tax companies on their worldwide income Limitation of existing Company Registry system capability Lack of direct regulation of company incorporation or administration (need of a anti money laundering handbook) Lack of ability to allow companies to be continued in St Helena (legally transferred to a new jurisdiction whilst retaining name and legal entity) Lack of ability for certain company types to be incorporated in St Helena (such as GmbH, Sarl etc) United Kingdom’s requirements with regards to the publication of registers of beneficial ownership Revenue raising opportunities Proposal New tax rate of 20% of a St Helena company’s global profits to be taxed at existing St Helena tax rate, meaning that global companies will pay an effective tax rate of 5% in St Helena. Minimum tax charge for medium and large companies to be at least 1% of global turnover (not profit) to ensure that all companies will pay tax in St Helena. Registered branches of foreign companies to pay 20% of their branch profits on redistribution of such profit away from St Helena New economic revenue stream for St Helena, provided the legislative, transparency and international requirements set out in this policy are complied with. New employment opportunities for St Helenians and training potential to assist international businesses with company administration, company secretarial work, preparation of accounts, assisting with bookkeeping services, client relationship skills, international finance experience etc. Proposal 2 Follow EU substance rules. Companies must: be directed and managed in St Helena; at least two directors present in St Helena for AGM for example. conduct its core income-generating activities in St Helena / principal administration activity in St Helena. have adequate people, premises and expenditure in St Helena. Make regular (annual) regulatory filings in St Helena. Report annually on their economic substance credentials and a formal hierarchy of sanctions for non-compliant entities