A survey carried out by STEP showed that compliance costs have increased drastically, and minor clients are likely to refuse services from offshore companies on financial grounds.
The influential factors on deciding in favour of closing an offshore company are:
– The automatic exchange of information (Common Reposting Standards).
– Anti-Money Laundering and Countering Financing of Terrorism law (AML & CTF).
The results of the research were as follows:
85% of respondents answered that their clients had begun complaining about the growth of the services cost, which is attributable to extra compliance-related expenses that the companies have to offset.
81% of pollees mentioned the qualitative changes and gradual dissolution of minor clients.
51% responded that their clients began winding up offshore companies and transferring their assets onshore, disclosing all relevant information.
71% of respondents said that the clients are more concerned with their reputation rather than with tax mitigation.
76% complained about consolidation tendency within the sphere, which apparently will urge them to change their area of work.
All overseas establishment specialists claim that as the European regulations tightened, Asia has remained as somewhat of an ‘oasis’, where business not only can survive, but also become prosperous.