Seychelles Trusts

Licenced And Regulated In Seychelles

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Seychelles Trusts and Tax

While there are situations where setting up a trust can offer tax advantages, it is essential to recognize that trusts serve broader purposes beyond taxation.

Important Considerations:

  1. Ownership Transfer:
    • When establishing a trust, the settlor relinquishes ownership of the assets placed within it.
    • This significant step typically makes sense when the settlor has clear objectives for those assets, with tax implications being secondary.
  2. Targeted Tax Advantages:
    • Most countries provide tax advantages selectively.
    • Strict rules govern which trusts qualify for significant tax benefits, and tax authorities closely monitor compliance.
  3. Tax Neutrality and Fiscal Policy:
    • In some countries the official stance is to maintain tax neutrality toward most trusts. The goal is to neither encourage nor discourage trust creation.
    • Some countries aim to eliminate tax advantages for trusts.
  4. Reporting Obligations:
    • Where required, trustees must provide trust details to the tax authorities when establishing a trust.
    • They may bear liability for any taxes owed by the trust.
    • Some countries may have onerous reporting requirements to ensure transparency.

Balancing Objectives:

  • While tax considerations play a role, trusts serve broader purposes:
    • Wealth preservation
    • Asset management
    • Estate planning
    • Supporting beneficiaries

In summary, trusts are multifaceted legal tools, and their tax implications should be evaluated alongside other objectives.

Understanding the nuances ensures effective trust management within legal and regulatory frameworks.

Our team at A.C.T. in Seychelles can help you quickly and cost-effectively establish and register a Seychelles trust, and properly setup and manage the roles of settlors, trustees, and beneficiaries, to ensure you have an effective Seychelles Trust.

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