Offshore Banking
Gross payment of interest
One of the benefits of offshore banking is that customers enjoy gross payment of interest on any funds deposited offshore (i.e. interest is paid without deduction of tax). However, customers resident in the European Union (EU) must ensure details of their accounts are supplied to the relevant tax authorities in order to avoid paying the EU retention tax which, since 1st July 2008, has been 20% of the interest due. Please refer to the attached document.
It is your responsibility to ensure that any tax liability in relation to funds deposited is accounted for by you to your appropriate tax authorities.
The information above should not be construed as the provision of tax advice. We are not qualified to provide tax advice and recommend that you seek advice from a professional tax adviser. Levels and bases of tax referred to above are those applying under legislation in force at the time of writing the relevant article. These levels and bases may change and the availability and value of any tax relief will depend on your individual circumstances.
