BUTTON

KYLIN PRIME FAMILY OFFICE

GLOBAL WEALTH
ENGINEERING

Trusts &
Foundation
Services

Setting up of trusts and acting as trustee

A trust is created by the settlement of assets by a settlor. Upon settlement, the trustee becomes the legal owner of the assets that have been settled and has a fiduciary obligation to deal with such assets in accordance with the deed of trust.

When setting up a trust, it is very important to plan in advance. We take great care in understanding the wishes of the settlor in order to ensure that the trust is set up in accordance with his/her wishes and that it will achieve the intended objectives for the ultimate and overriding benefit of the beneficiaries.

The process starts with the collection of due diligence documents which we are legally required to collect in order to be able to conduct a due diligence process. Once this process is concluded, and the trust is set up, the settlor will transfer the assets to the trustee and the trust fund will be created. The trustee will manage and administer the trust and the trust fund accordance with the trust deed.

As part of the service of acting as trustee, we provide bookkeeping and accounting services and, with the assistance of tax advisors, can assist with ensuring tax compliance.

Administration of private foundations

Private foundations are set up for various purposes for the benefit of named persons or a class of persons. The foundation has separate legal personality and it is the legal owner of the assets forming part of its patrimony.

In administering foundations, we ensure that the patrimony is managed and administered in a professional manner, for the benefit of the beneficiaries and in accordance with the purposes of the foundation.

As part of the service of acting as administrators of private foundations, we provide bookkeeping and accounting services and, with the assistance of tax advisors that are appointed in consultation with the client, can assist with ensuring tax compliance.

Opening of bank accounts

Maltese trusts and foundations are not required to have bank accounts in Malta. They can open and keep bank accounts in other countries. However, subject to the acceptance of the chosen bank, a Maltese trust or foundation may open bank accounts in Malta.

We will be able, subject to acceptance by the bank, to assist clients with the process of opening bank accounts for themselves and for their structures.

Advisory and Consultancy Services

During the life of a trust or a foundation, clients may need various advisory and consultancy services. Clients may need assistance with the review or drafting of legal documents, contracts and agreements.

We will be available to assist and advise in most circumstances, and in cases that fall outside our areas of expertise, we will be able to assist our clients to find suitable experts to assist. In such cases, we will also be available to act as a central point of contact on behalf of the client and will also be able to act as project managers, ensuring that the client gets what he needs and that the client’s interests are safeguarded.

Kylin Prime Trust Services Limited

Licensed by the Malta Financial Services Authority in accordance with the provisions of the Trusts and Trustees Act (Chapter 331 of the Laws of Malta) The services provided by Kylin Prime Trust Services Limited include

  • Establishment and Management of Trusts;
  • Establishment and Administration of Private Foundations;
  • Provision of Fiduciary Services;
  • Provision of Custody Services with respect to Virtual Financial Assets (in terms of the Virtual Financial Assets legislation); and
  • Being the client’s primary point of contact with regulatory or government authorities as well as public and private institutions in the trusteeship and fiduciary world.

Malta as a
jurisdiction for
corporate entities,
trusts and
foundations

Basic facts about the country

Malta is an archipelago of islands strategically located at the centre of the Mediterranean Sea, a few kilometres south of Italy and a few kilometres north of Africa. Malta is a Member of the European Union (“EU”), part of Eurozone and a member of the Commonwealth of Nations. Malta’s official languages are English and Maltese.

Attractiveness for corporate entities, trusts and foundations

Malta is safe and reputable and it is not an offshore jurisdiction. The Maltese economy is strong and the banking sector is stable and secure. Malta is considered a first-class financial services centre with a sound and solid regulatory environment.

Maltese Companies are taxed at the flat rate of 35%. However, the shareholders are entitled to receive in their hands a 5/7 or 6/7 refund of the taxation suffered at the corporate level, depending on the nature of the income derived by the Maltese Company. Furthermore, in the case of a participating holding or the disposal of a participation holding, a participation exemption would apply bringing the net tax effect to nil.

Malta does not levy withholding taxes upon the distribution of dividends to a company’s shareholders and there are no withholding taxes on interest and royalties paid to non-residents. Following the implementation of the EU’s Anti-Tax Avoidance Directive (ATAD), Malta applies thin-capitalisation rules in specific circumstances. There are no debt to equity ratios or transfer pricing rules, but it is important to be aware of the General Anti-Abuse Rule introduced by ATAD in curtailing tax avoidance schemes. furthermore, Malta does not charge capital duties or wealth taxes.

Trusts and foundations may opt to be treated as companies for tax purposes.

Malta is also party to over 75 double taxation agreements. Moreover, Malta is an active participant in the field of automatic exchange of information and besides implementing BEPS has concluded exchange of information agreements with 6 states.

Maltese corporate and fiduciary structures are becoming increasingly popular within international structures and are increasingly used as part of international tax planning solutions for both businesses and private individuals.

Contact Us
United Kingdom

+44 (0) 20 8099 0999


116 Park Street, Park House, London,
W1K 6SS, United Kingdom.


Email: uk@kpfo.com

Luxembourg

+352 (0) 2620 0506


5 Rue de la Boucherie
L-1247 Luxembourg


Email: luxembourg@kpfo.com

Switzerland

+41 (0) 44580 2159


Bahnhofstrasse 21, 6300 Zug,
Switzerland


Email: switzerland@kpfo.com