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Offshore Banking

A single law, the Financial Institutions Act, 2004 regulates both domestic and offshore banking and incorporates the necessary flexibility to encourage substantial growth in the offshore banking sector. Tax treatment of offshore banks is equivalent to that prevalent in some of the most reputable offshore jurisdictions. For example, corporation tax, withholding tax, customs duties, stamp duty and exchange control are non-existent.

Key Features:

• full confidentiality, except is the case of criminal investigations
• an offshore bank may be administered by an established domestic bank
• the offshore bank must be either a company limited by shares or an overseas company registered under the domestic Companies Act
• the minimum paid-up capital is US$ 2 million or its equivalent in any freely convertible currency

In the instance of double taxation agreements, provisions is made for the bank to elect to pay corporation tax at a rate agreeable to both the offshore banking company and the Commissioner of Taxes.

Associated Downloads

Financial Institution ACT, 2004 [278.13KB]

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