In contrast, Seychelles residents are legally able to own and operate a Seychelles IBC as long as the IBC is not conducting business within Seychelles. Seychelles also has a "territorial" tax system meaning that Seychelles residents are only taxed on their locally sourced income. Therefore, there is no advantage to non-residents over residents and claims of "ring fencing" have no merit on the Seychelles IBC. This has been, and continues to be, used successfully by Seychelles in defense of the Seychelles IBC vs. international bodies such as the OECD and FATF. Boosting the defense even more is the fact that there are no restrictions on a Seychelles IBC owning shares of a Seychelles domestic company.

In contrast, Seychelles residents are legally able to own and operate a Seychelles IBC as long as the IBC is not conducting business within Seychelles. Seychelles also has a "territorial" tax system meaning that Seychelles residents are only taxed on their locally sourced income. Therefore, there is no advantage to non-residents over residents and claims of "ring fencing" have no merit on the Seychelles IBC. This has been, and continues to be, used successfully by Seychelles in defense of the Seychelles IBC vs. international bodies such as the OECD and FATF. Boosting the defense even more is the fact that there are no restrictions on a Seychelles IBC owning shares of a Seychelles domestic company.

http://www.onlineoffshore.info/en/briti…. Seychelles and BVI complied with "ring fencing" and preserved their IBC. Why cannot the Bahamas do the same? "In contrast, Seychelles residents are legally able to own and operate a Seychelles IBC as long as the IBC is not conducting business within Seychelles. Seychelles also has a "territorial" tax system meaning that Seychelles residents are only taxed on their locally sourced income. Therefore, there is no advantage to non-residents over residents and claims of "ring fencing" have no merit on the Seychelles IBC. This has been, and continues to be, used successfully by Seychelles in defense of the Seychelles IBC vs. international bodies such as the OECD and FATF. Boosting the defense even more is the fact that there are no restrictions on a Seychelles IBC owning shares of a Seychelles domestic company."

Here is the solution for the Bahamas. License fees are based on annual turnover. Let's include in this turnover only operations related to domestic trade, export and import operations connected to the Bahamas. The fees will be the same for domestic companies and IBCs. The situation for IBCs will not change as they are not engaged into domestic trade, export/import operations related to the Bahamas. The license fee base for domestic company will hardly change as they mostly engaged into domestic trade, import to the Bahamas or export from the Bahamas. The license fee rulle will be the same for domestic companies and IBCs. It will comply with OECD requirement. A similar approach can be used for stamp duties. The rules will be the same for resident and non-resident entities but the tax base will be adjusted accordingly business activity.

Here is the solution for the Bahamas. License fees are based on annual turnover. Let's include in this turnover only operations related to domestic trade, export and import operations connected to the Bahamas. The fees will be the same for domestic companies and IBCs. The situation for IBCs will not change as they are not engaged into domestic trade, export/import operations related to the Bahamas. The license fee base for domestic company will hardly change as they mostly engaged into domestic trade, import to the Bahamas or export from the Bahamas. The license fee rulle will be the same for domestic companies and IBCs. It will comply with OECD requirement. A similar approach can be used for stamp duties. The rules will be the same for resident and non-resident entities but the tax base will be adjusted in accordance with character of business activity.