The Seychelles Private Interest Foundation(“PIF”) is the latest cutting edge tax planning/asset protection product to come out of the booming tax haven of Seychelles.
Passed into law in December 2009 the Seychelles Private Interest Foundation draws heavily on the more popular aspects of the Panama and Liechtenstein models, but includes its own unique features, sure to make it attractive particularly to those clients for whom asset protection and tax minimisation is a major focus.
The primary benefits of the Seychelles Private Interest Foundation are in terms of the opportunities it offers by way of Tax deferral, Succession planning and Financial Privacy. (The law also contains some of the strongest asset protection provisions ever conceived for a structure of its kind).
Neither the names of the person/s establishing the PIF nor the persons who are to benefit from the PIF have to be disclosed to the Registry and the structure is easy to register – achieved by simply filing the Foundation Charter (which document does NOT have to include the Founder or the Councillors’ names).
The Seychelles Foundation law is cleverly drafted in that it provides that, until such time as Foundation property is actually transferred to the beneficiaries, the beneficiaries hold no legal interest in Foundation property. The legal owner of property held by the Foundation is the Foundation itself!
As there are limits to the kind of trading activities that a Foundation can undertake a Seychelles Private Interest Foundation works best when it’s used to hold the shares of your Offshore Company. This dual structure not only makes it all but impossible for creditors/vultures to attack your assets but (given the wording of the Seychelles law) it also creates a scenario whereby you may be able to lawfully avoid having to declare and pay taxes Onshore on your Offshore earnings (unless or until such time as a distribution is paid to you by the Foundation).
|Foundation Legislation||Seychelles Foundations Act 2009|
|Type of Entity||Foundation|
|Taxation||Seychelles Foundations are completely exempted from payment of income, capital gains, stamp duty, withholding or any other form of taxation in Seychelles.|
In addition to non-Seychelles assets, the Foundation assets may include –
|Purpose and Objects||A Foundation’s main purposes or objects shall include the management of its assets and the distribution of its assets and income to the Foundation’s beneficiaries in accord with its charter or regulations. A purpose or object of a Foundation may be, but need not be, charitable.|
|Foundation Regulations||A Foundation may adopt a document called its “Regulations” providing, for example, for the identification and designation of Councilors and beneficiaries, distribution of Foundation assets, beneficiary entitlement proportions, etc. Unlike the charter, the regulations are a private document (not filed at the Registry).|
|Registered Agent||A Seychelles Foundation must at all times have a registered agent in Seychelles licensed as an International Foundation Services provider under the International Corporate Services Providers Act 2003 ( as amended).|
|Government Costs||Government licensing fees are a flat US$200 each year and are due on the anniversary date of the registration of the Foundation on a yearly basis.|
|Books and Records||
A Seychelles Foundation shall keep proper books of account and records as its council considers necessary in order to reflect its financial position, about –
|Time to Establish||