Crackdown on land sales
p. 34 · Read in the full issue
land sales
THE Vanuatu government has moved to stop companies using the offshore financial centre to buy land within the country. The trans fer of any company’s shares on the Vanuatu share registry is subject now to a four per cent stamp duty if the com pany involved holds any interest in Vanuatu leasehold land.
While the purpose of the amendment is to stop people from using Vanuatu companies to purchase local land in terests, Pacific International Trust Com pany has told its clients that the new law will be particularly burdensome for Vanuatu companies which have substan tial assets and also some local land in terest. It advises such companies to sell the land before any share sale, or alter natively use companies whose share reg istry is in another jurisdiction.
The trust company has expressed the hope that the new law will be amended to assess the higher duty on only that proportion of the value of the shares being transferred as represents the value of interest in Vanuatu real property. □