QROPS Cambodia. Pension Tax Relief for British Expats in Cambodia
British expats living in Cambodia or wanting to retire in Cambodia can now transfer their pension into a QROPS Cambodia to maximize pension tax relief. British expats living or working in Cambodia can take advantage of their offshore status and transfer their UK pension offshore to somewhere secure like Gibraltar or New Zealand in order to avoid taxation in the UK.
Why live or retire in Cambodia as a British expat?
Over 1,000 Brits are estimated to live in Cambodia. In 2010 Cambodia’s per capita income in PPP terms is $2,470 and $1,040 in Nominal Per Capita. Cambodia’s per capita income is rapidly increasing but is low compared to other countries in the region. Most rural households depend on agriculture and its related sub-sectors. Rice, fish, timber, garments and rubber are Cambodia’s major exports. The International Rice Research Institute (IRRI) reintroduced more than 750 traditional rice varieties to Cambodia from its rice seed bank in the Philippines. These varieties had been collected in the 1960s.
QROPS Cambodia. The Benefits of a QROPS for British Expatriates in Cambodia
What are the benefits of a QROPS Cambodia Pension Transfer for British expatriates in Cambodia?
• Avoid UK income tax
• Avoid UK dividends tax
• Avoid UK capital gains tax (CGT)
• Avoid UK inheritance tax (IHT)
• Currency choice. You can choose to have your pension transferred to a QROPS denominated in USD, EUR or keep it in GBP
• Have the ability to make higher returns with freedom of investment
• Family Protection: Upon death, the entire pension pot gets passed on to your nearest and dearest
• Security: The pension is held in a secure jurisdiction such as Gibraltar or New Zealand for tax purposes. Both have strong financial regulatory bodies and are HMRC approved in 2013.
What is the economy like in Cambodia?
According to the IMF, the annual average GDP growth for the period 2001–2010 was 7.7% making it one of the world’s top 10 countries in GDP growth terms. Tourism was Cambodia’s fastest growing industry, with arrivals increasing from 219,000 in 1997 to 2,000,000 in 2007. In 2004, inflation was at 1.7% and exports at $1.6 billion US$. As of 2005, GDP per capita in PPP terms was $2,200, ranking 178th out of 233 countries.
China is Cambodia’s biggest source of foreign direct investment in the kingdom. China plans to spend $8 billion in 360 projects in the first 7 months of 2011. It is also the largest source of foreign aid, providing about $600 million in 2007 and $260 million in 2008.
What is a QROPS Cambodia?
A Qualifying Recognized Overseas Pension Scheme (QROPS Cambodia) allows your UK pension to be transferred offshore to reduce your tax burden. Effectively, you will no longer pay UK tax on your pension whilst you are offshore and after 5 years of living offshore, the reporting requirements to HMRC cease.
QROPS Cambodia. What is the Tax on a QROPS in Cambodia
Do I need to move my pension to Cambodia?
No. Your pension does not need to be moved to the country you live in. It is better to move it to the securest place for tax efficiency. In 2013, the best options are New Zealand or Gibraltar.
What is Personal Income Tax in Cambodia?
|Annual Taxable Profit||Income Tax Rate/th>|
|From 0 Riel to 6,000,000 Riels $0 to $1,500||0%|
|From 6,000,001 Riels to 15,000,000 Riels $1,501 to $3,750||5%|
|From 15,000,001 Riels to 102,000,000 Riels $3751 to $25,500||10%|
|From 102,000,001 Riels to 150,000,000 Riels $25,501 to $37, 500||15%|
|Greater than 150,000,000 Riels greater than $37,500||20%|
If you remit your pension income into Cambodia, you are due the taxes above on your worldwide income. You could also elect to have your pension paid into an offshore account in USD or GBP. If you have a QROPS in Gibraltar, you get taxed 2.5% on income at source. In New Zealand there is no taxation, but the investment options are more limited.
Do I need to live and retire in Cambodia?
As long as you live outside the UK, e.g. in Cambodia, you can move your pension offshore to NZ or Gibraltar to avoid UK taxation. If you return to the UK, your QROPS reverts to normal UK SIPP rules.
For enquiries, please send email to email@example.com
Pension tax relief for UK expats, QROPS Cambodia article written by QROPS Specialists.QROPS Cambodia Pension Transfer for British Expats to Avoid Paying Taxes by Richard Malpass