[Webinar Replay] Tax Saving Opportunities for Expats
Capital Gains Tax: When Expats Pay Cross Border
In this months Wednesday Webinar, we discussed when tax liability arises and where for expats ‘Living and Working Abroad’.
FIXED ASSETS
Capital Gains taxes are tax on the disposal of capital assets for profit.
There will generally always be a Capital Gains Tax assessment in the country in which the asset is fixed or registered, be that real estate property, a registered business, any register sea boats or shipping vessel, an investment asset, a trust disposal or an inheritance.
Inheritance taxes are a different form of capital gains tax, following the principle of tax everything that moves, when we leave this mortal realm our estates are subjected to a tax review one last time.
A capital asset has its own tax registration which is separate to that of the individual.
So the owner of shares, or property, could be a tax resident elsewhere around the world, but still be liable to a capital gains tax in the jurisdiction where the sale or disposal of the asset with capital gain occurs, that is in the country of disposal or its registration.
Under double taxation rules there is then a potential additional assessment in the beneficiaries individual tax residence.
PROTECTING FAMILY & BUSINESS
Owning the business or investment or property in a country with low capital gains tax rate is not an adequate tax planning tool in itself. Under exchange of information rules individuals and beneficiaries of sales and movement of funds has all to be declared by tax residence. Discrete tax planning used to mean not telling anyone, that is hard to do in this connected world.
ProACT in partnership with expat family and business look for ways to organise assets to protect from capital assets on disposal or death. Expats may be able to pay 0% tax, but you could always pay the minimum tax for your situation of you business and family investments and property.
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