Cook Islands

The Cook Islands' offshore finance business was created by a series of legislative enactments in the 1980s which established a regime for international companies, partnerships and trusts, offshore banking, insurance companies and registered trustee companies.

There are six trustee companies in the Cook Islands. They contribute to the economy in terms of direct value added (wages and profits), licence fees and taxes and a range of indirect benefits. The industry's total contribution of the offshore sector to the national economy is about 8.2 percent of GDP, making it second only to tourism.

Entities established under the offshore regime are exempt from any form of income taxation, stamp duties and withholding tax. Strong confidentiality provisions apply to the offshore regime and no exchange controls apply to offshore activities.

The industry's most important activities revolve around the formation and management of trusts for asset protection. There is considerable onshore business servicing the trusts and providing administration services for offshore mutual funds.

Administration and regulation of the offshore industry is carried out by the Commissioner for Offshore Financial Services.

Early in 2002 the Cook Islands made a commitment under the OECD Harmful Tax Practices Initiative to cooperate with the OECD to improve the transparency of its tax and regulatory systems and establish an effective exchange of information regarding tax matters with OECD countries.

Cook Islands Government The Development Investment Board (“DIB”)

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