Investment Vehicle Solutions
When making investments, whether it be for tangible or intangible assets, it is important the correct investment vehicle is used. Vehicles like limited liability partnerships (LLP’s) provide excellent tax deferral vehicles whereby profits are taxed not at an entity level but by the level of the partners or members. As the name suggests the partners or members are only liable for the capital introduced to the vehicle which differs from standard partnerships.
Provided certain conditions are met -e.g partners or members are not local tax residents and there are no locally held assets or income generated, the entity will not be taxed on the income or capital gains made. Only once profits are distributed will the individual partners or members be liable for taxes in their home jurisdictions.
Many jurisdictions have introduced this type of vehicle as a method of encouraging foreign investment.