[box size=”large”]The Hong Kong ORS is arguably the most tax efficient pension structure available to high net worth individuals.[/box]
Hong Kong has established a rather unique vehicle, the Occupational Retirement Scheme (ORS), and its use is not restricted to Hong Kong. An ORS is capable of attracting pension assets from across Asia, Europe and North America. The ORS structure not only benefits from tax-free pension accumulation but it also works as a tax friendly repository, which is both creditor-proof and extremely flexible concerning the classes of assets it is allowed to hold.
Due to the attractive Hong Kong ORS tax regime and favourable use of double taxation agreements, one’s nationality and tax residency are not relevant to a scheme. Current rules allow for Income Tax and Capital Tax deferral that can operate as a perpetual Trust to assist estate and succession planning, and can accept most transferred pensions and/or registered plans with few restrictions. An ORS also allows a wide variety of assets to be held, giving an ORS trustee discretion to invest in a practically unfettered range of global asset classes.
[box type=”info” size=”large”]Hong Kong has a straight forward, legitimate, long existent low tax system with attractive, genuine open pension planning for international and local clientele who wish to have safe/reliable capital to draw on when they retire.[/box]
While the effect of efficient pension planning is much lower taxes on your estate, this is not a scheme developed for tax avoidance. Instead, the Hong Kong pension regime will maximise the return on your wealth allowing for the efficient management of pension assets in order to benefit from double-taxation regulations, avoid overlapping taxes, and unnecessary taxation fees through poor future planning and unawareness of taxation law.
Hong Kong ORS Photo credit: ROSS HONG KONG on Visual Hunt / CC BY-NC-SA
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