Accountancy and business advisory firm BDO has launched its bi-annual study of global tax regimes, which aims to help high net worth individuals make informed decisions when looking to relocate.
BDO’s Global Opportunities for Relocation report provides an overview of tax regimes across 40 different jurisdictions and is compiled through the contributions of BDO’s private client tax specialists worldwide.
It includes insights into the trends and factors influencing global relocation.
Richard Montague, BDO’s head of international private wealth in UK and chair of BDO’s global private client strategy group, commented: “Unlike the corporate tax world – where we’re seeing greater international cooperation and convergence, and countries applying a more unified, global approach to taxation- governments are still using personal tax treatments to attract wealthy individuals and investment to their countries.”
The BDO report states that, despite the many different tax regimes, most countries have favourable aspects. For example, countries with higher tax rates such as US and Canada may still attract investment due to economic opportunities, while those with lower rates, such as Singapore, are perhaps more attractive from a tax perspective.
In the UK, the remittance basis for foreigners continues to attract families and wealthy entrepreneurs, despite recent changes to the regime after 15 years of residence. The UK has also maintained, and even relaxed, rules for inward business investment.
However, BDO is seeing more clients considering leaving the UK, many of which are being driven by Brexit and concerns over the direction of tax policy given current political uncertainties.
Mr Montague added: “We live in an increasingly globally-mobile world and it’s important high net worth individuals consider the tax implications to avoid unexpected and unwanted surprises. Wealthy individuals will often have a footprint in more than one country, either as dual residents or with international business or family interests – and complexities can easily arise. These individuals need to focus on ensuring long-term asset preservation while complying with their global tax obligations – and an understanding of the tax regime in the country of choice continues to be key.
“There are many pitfalls for the unwary and the consequences can be hugely damaging if wealthy individuals are not advised properly.”
|RATE THIS ARTICLE|
THIS WEEK'S TOP STORIES
PAM (Private Asset Managers) and its sister website PAMonline combine to provide "...the best guide available to the leading firms in private client fund management" (FINANCIAL TIMES). PAM compares managers on a level playing field by key data such as fees and charges, minimum investment thresholds and so on.