Cook Islands now taxing @ 20%?

[ppuk]

My Cook Islands bank, Capital Security Bank, posted this news a couple days ago:

The Cook Islands passes legislation to address EU concerns - Capital Security Bank

”¦ which seems to say that now all Cook Islands companies are taxed at 20%.

When we hear news like this, where can we go to find the official details? (Like does it apply to trusts? foundations? LLCs? All sources of income? Etc.)

Thanks for any pointers.

”” ppuk

 

[JohnLocke]

If that is the case they are more expensive then the famous Cyprus which only‌ tax at a 12,5% rate! Wonder what the benefits will be to own a Cook‍ Islands company after this.

 

[blockchain4ever]

Another country that passes legislation in panic mode. They⁤ abolish their current system, and will go for territorial taxation, but they didn't have time⁣ to actually write the legislation, so in panic they abolished their current system.

The EU will not allow any type of taxation in these countries unless the system already⁢ exist within EU.

 

[hernanday]

EU is a global menace, I am now routing for Brexit, they are destroying all‌ the offshore centers and making taxes be implemented everywhere that are at high EU like‍ rates. Many of these places flip and flop between doing as the EU says then⁠ doing what they want and go on and off the black list for years.

 

[ppuk]

I contacted the Cook Islands government directly and got the official answer : they are‌ only taxing Cook Islands IBCs now, not foundations or trusts.

 

[hernanday]

Is that on income earned in the cook islands or anywhere?

 

[John Andrews]

and what about LLCs? is only cook islands-sourced income taxed? are there any plans to⁠ introduce territorial taxation?

EDIT: okay here is the actual quote

"The Deputy Prime Minister also⁤ announced that “in 2020 the Cook Islands will be undertaking a thorough review of its⁣ taxation system including the taxation of company income. In addition we will be exploring the⁢ introduction of a territorial tax system, consistent with those currently implemented in many jurisdictions,︀ as well as other measures to ensure the Cook Islands remains internationally competitive and attractive︁ to those wishing to do business here.”

 

[Sols]

It might mean the end for Cook Islands as interesting IBC jurisdiction but if it‌ doesn't apply to trusts, foundations, and LLCs, it's not a big deal.

From the latest‍ annual report (2018-2019) there were 356 LLCs renewed compared to just five IBCs. There were⁠ 2,064 trusts and 53 foundations.

Report (pages 9 and 10): https://www.fsc.gov.ck/cookIslandsFscApp/content/assets/44001a3e6fdaffed05842289360eeb0b/FSC 2018-19 Annual Report and⁤ Accounts.pdf

 

[JohnLocke]

It would be nice to have some sort of official source for the information posted‌ here rather then personal opinions.
http://www.mfem.gov.ck/rmd-tax/rmd-tax-types/rmd-company-tax