Sunday, January 2, 2011

Domicile

The term domicile refers to the country of residence. The term is applicable in the context of individual investors, fund entities, and fund managers. In terms of individuals, their country of domicile can impact on their taxation status, and the definition of their domicile can vary depending on the particular tax laws of each country. In terms of fund entities, it may refer to where they are incorporated, for example there are a lot of funds that are incorporated in the Bahamas or Cayman Islands, this may be for tax efficiency reasons, or a range of other regulatory efficiencies. Likewise fund managers may domicile themselves as appropriate to most efficiently structure their operations from a tax, regulatory, and commercial effectiveness perspective. For individual investors issues, if issues of domicile are likely to arise, it is important to seek expert advice, because the cost of not getting things right could well outweigh any professional services fees.

Synonyms: Residency status, Tax domicile, Offshore fund, Primary residence, Fund domicile
 
Comments?
If you have any further questions or would like to add to the entry above, then please submit your thoughts below.

No comments:

Post a Comment