Budget Highlights

(PART OF THE ASIACITI GROUP)

In the recent 1997/98 Budget, the following measures pertaining to our offshore sector were announced :

1. The Offshore Trusts Act 1992 is being amended to remove anomalies regarding the tax treatment of offshore trusts and also to exempt offshore unit trusts from the provisions of the domestic Unit Trust Act.
2. Annual licence fees of companies set up specifically to act as 'nominee holding companies" are reduced from USD 1,500 to USD 250.
3. Interests earned by offshore companies on call and deposit accounts with offshore and domestic banks will be exempted from income tax.
4. Approved companies engaged in aircraft leasing activities are allowed to claim 100 per cent capital allowances in the first year.