International Law

PROTECTING ONES ASSETS IN A TAX FRIENDLY ENVIRONMENT

By Karel.Frielink

Dutch Caribbean as the jurisdiction of choice

There are millions of people around the world who can be called wealthy. Many of them want to protect their wealth, against political instability, for example. To do so they can choose among various jurisdictions.

The Netherlands Antilles (a.k.a. the Dutch Caribbean) is a jurisdiction of choice one should definitely consider. There are several reasons why the Netherlands Antilles is already the favorite jurisdiction for so many people. One reason is that it is part of the Dutch Kingdom, which is known for political stability. The fact that the Dutch Supreme Court in the Hague also serves the Netherlands Antilles adds to the trustworthiness of this jurisdiction.

The Netherlands Antilles is known for its excellent financial, legal and technical infrastructure. Global firms like PricewaterhouseCoopers, KPMG and Ernst & Young, for example, have offices in the Netherlands Antilles, not without reason! In addition, many international banks & investment institutions, as well as international law firms, tax advisers and accountants have done business in the Netherlands Antilles on a regular basis for decades.

The Netherlands Antilles offers a favorable tax regime. One of the instruments available is the Private Foundation (?PF?). The PF is a legal entity but does not have a share capital. The PF is, for example, exempt from Netherlands Antilles profit tax, provided that it does not conduct a ?real? business or run an enterprise for profit. Click here for more information on tax planning issues regarding PFs. It should be noted that the tax regime of the Netherlands Antilles complies with international standards and is therefore not black-listed (OECD, FATF).

If you have any questions, please do not hesitate to contact me.

Karel Frielink
Attorney (Lawyer) / Partner

Full post as published by Karel's Legal Blog on April 22, 2008 (boomark / email).