Turks & Caicos Background

There is no form of direct tax in the Turks and Caicos - no income tax, company tax, withholding tax, capital gains tax or other tax on income, profits or assets. Exempted companies automatically receive a Governor's Undertaking guaranteeing exemption from taxation for 20 years.

There are no tax treaties with other countries.

Turks & Caicos Introduction

The Turks and Caicos Islands ("TCI") lie 920 kilometres south east of Miami, some 50 kilometres south west of the Bahamas. The Turks and Caicos Islands are a group of twenty tropical Islands and the total landmass extends to some 430 sq km. The Islands are a British Crown Colony and Britain maintains responsibility for defence and foreign affairs. The population of the Turks and Caicos Islands is approximately 19,000 and the economy is predominately based on tourism, offshore finance and fishing.

The official and spoken language is English.

Turks & Caicos Law and Taxation

The TCI legal system is based on the English model, but unlike England there is a written Constitution which includes provisions for the protection of fundamental rights and freedoms. Most of the law derives from ordinances passed in the Legislative Council and to a much lesser extent from legislation specially extended to the TCI by Britain. Where statutory law does not apply or requires interpretation, the common law of England applies.

Whilst there is no requirement to file annual audited accounts with the authorities, a company is required to keep financial records which reflect the financial position of a company.

Corporate Requirements

The following words cannot be used either in English or any other language: Assurance, Bank, Building Society, Commonwealth, Co- operative Society, Fidelity, Friendly Society, Guarantee, Indemnity, Insurance, Re-insurance, Trust, Trustee, Underwriter, Royal, Imperial, Empire, Municipal and Chartered or any derivatives of any of these words without the written consent of the Financial Secretary. The name of an exempt company need NOT indicate that the company is limited.

Local Infrastructure

The Turks & Caicos Islands are considered to be the best tax haven jurisdiction in the world, for the following reasons:
(01). Turks and Caicos law clearly establishes rules and regulations favourable to the formation of Offshore Corporations, Trusts, Banks and Captive Insurance Companies.
(02). Great Britain encourages this haven as a revenue producing means, thereby enhancing the Colony's economic independence.
(03). There is no tax imposed on any form of income, capital gains, corporation dividends, property, estate, inheritance, succession, gift or sales in the Islands.
(04). The U.S. dollar is the official currency.
(05). There is no Central Bank and no monetary controls of any kind.
(06). There is no Tax Treaty between the Turks & Caicos Islands and any other country. This guarantees freedom of privacy.
(07). The Turks & Caicos Islands have some of the most severe penalties for violation of privacy laws of any tax haven jurisdiction in the world.
(08). British Common Law is the law of the land.
(09). English is the language in the Islands.
(10). The cost of forming companies in the Turks & Caicos Islands is moderate and less expensive than in other Atlantic-Caribbean tax haven jurisdictions.
(11). The Turks & Caicos Islands are the first not only to offer a 20 year guarantee against future taxes but to guarantee immunity from possible fee increases as well.
(12). The Turks & Caicos Islands are well equipped with the required infrastructure to conduct business in today's world.