We are an independent global specialist in the administration of traditional funds and alternative assets with a particular specialism in private equity and real estate.
CRS & FATCA
We can support your fund through its entire lifecycle and the growth of your business. We provide a comprehensive range of private equity solutions delivered from key onshore and offshore jurisdictions to leading companies investing in a broad range of industries.
Our Fund Services Division has a proven track record in providing a broad range of fund services where the asset class is real estate.
JTC’s strong track record in operating at the leading edge of alternative asset classes continues with its innovative and market-leading capabilities in the emerging sphere of cryptocurrencies.
JTC Fund Services can offer a fully AIFMD-compliant ManCo service. The activities of the ManCo include providing a portfolio management, risk management and oversight function.
We have a deep understanding of listing funds on internationally recognised stock exchanges and the ongoing regulatory requirements of administering listed funds.
As a truly independent fund administrator you can be reassured that your fund administration requirements are entrusted to people that care about your investment structures.
We will project manage your application and guide you through the process and co-ordinate the various advisors to assist with the fund launch and strive to ensure everything happens within the expected timescales.
We offer a transparent, proactively managed range of cash management, foreign exchange and lending services, supported by a dedicated team of experienced professionals.
JTC Corporate Services provides a comprehensive range of corporate and fund services from key onshore and offshore jurisdictions to leading companies in their field of expertise.
We provide corporate finance services for corporate and institutional clients including debt capital solutions, treasury and escrow services.
We provide employee benefit structures, administration services to ensure employees get maximum value from the plans that organisations put in place.
Global experience in this dynamic asset class, spanning our corporate, funds and private client divisions.
JTC Private Wealth Services specialises in protecting and nurturing your private capital in real estate, financial and non-financial assets across countries and generations.
Superior service delivered by industry leading experts for private individuals, entrepreneurs and their families.
We provide a tailored range of private office solutions that work effectively for each family, from generation to generation.
We are able to partner with corporate and institutional wealth providers to complement their service offering by providing trust and company services.
In an age of truly international mobility, we also offer market-leading citizenship-and-residency-by-investment solutions via a strategic alliance with market-leading provider Henley & Partners.
JTC has extensive cross-jurisdictional experience and expertise in working with institutional and private clients in Africa, Americas, Asia, Australasia, Caribbean, Channel Islands, Europe, Middle East, Russia & CIS and the United Kingdom.
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12 Oct 2017
Date: 2 November 2017
Location: The Tower of London
3 Aug 2017
22 Aug 2017
We are JTC, an independent, award-winning provider of fund, corporate and private wealth services to institutional and private clients.
We value shared ownership, we put relationships first, we invest in our people, we embrace technology. We are JTC.
To build partnerships with our clients that enable them to focus on their core business.
We live and breathe our values and together they form our unique culture and JTC DNA.
JTC’s shared ownership philosophy extends to the communities where we live and work.
Established in 1987, we are proud of our history and excited about our future.
Join a dynamic team at JTC where everyone is dedicated to continuously delivering a service beyond our clients' expectations.
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We want everyone, wherever they work in the JTC network, to be able to develop the skills and knowledge that they need to be excellent in our world and we deliver this to our team through the JTC Academy.
JTC Gateway offers our people the opportunity to develop their careers by working in Group locations across the world.
JTC is committed to the policy of equal treatment of all its employees and requires all employees of whatever grade or authority, to abide by and aspire to this general principle.
We have a highly qualified and multilingual workforce. In 1998 we created the JTC Employee Benefit Trust, which turned our employees into stakeholders. This enables us to attract and retain the best people, whilst keeping them absolutely motivated and dedicated to our clients.
In 2014 this belief in share ownership was embedded further into the JTC culture with the equity for all scheme, allowing all permanent members of staff the opportunity to invest in the future of their company. That helps explain why they are so dedicated and care so much about their client’s work.
Our shared ownership culture benefits our clients.
JTC is an international organisation with global reach and true cross border capability. We are proud of our ability to provide the best solutions for clients irrespective of geography.
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Malta makes an attractive location for the establishment of trusts, thanks to its cutting-edge domestic trust law, high professional standards and authorisation.
It is also one of the few countries to successfully incorporate the Anglo-Saxon trust concept with its Roman law-based legal system.
Maltese legislation provides for a wide variety of trusts that may be used for different purposes.
DEFINITION AND PRINCIPLES
In terms of Malta law, a trust exists where a person or persons (referred to as a trustee) holds, as owner, or has vested in them property under an obligation to deal with that property for the benefit of persons (called the beneficiaries), whether or not yet ascertained or in existence, which is not for the benefit only of the trustee, or for a charitable purpose or for both such benefit and purpose aforesaid. Any type of property may be settled on trust, such as shares in companies, bonds, cash, copyright, patents and trademarks.
The trust therefore separates the legal title, or ownership, of property from the right to benefit from that property.
Furthermore, Malta law fully recognises foreign trusts and provides the possibility for trusts established in Malta to be governed by a foreign law. Malta law also precludes the applicability of Maltese mandatory rules relating to succession, inheritance or forced heirship in cases where, upon settlement, the settlor is not domiciled in Malta.
In addition to providing investors with a flexible environment, Malta law regulates the institute of trusteeship as well as laying out the fiduciary obligations that define the legal relations in the trust context.
This provides investors with the assurance of a highly regulated environment that remains faithful to the original concept of trusts by enabling domestic courts to recognise and uphold trust principles.
 Article 3 of the Trust and Trustees Act, Chapter 331 of the laws of Malta
THE LEGAL EFFECTS OF A TRUST
The holding of property by the trustee under trust has the following legal effects:
Many trust arrangements are broadly similar although each is tailored to the individual requirements of the settlor and beneficiaries. There are various types of trusts, the choice of which will depend upon the circumstances of the settlor and the manner in which it is intended to provide for the beneficiaries.
Malta caters for all the main types of trusts such as:
As such, Maltese trusts are used for a wide range of reasons, including confidentiality, succession planning, avoiding probate, asset consolidation, management and asset protection, tax planning and protecting minors. Malta law also permits the setting up of a Collective Investment Scheme and pensions schemes via trust.
CREATION OF A TRUST
Malta offers various flexibilities in the formation of a trust. With the exception of unit trusts, which must be created by a written instrument, a trust can be created in any way, whether this is done unilaterally, by an oral declaration, by an instrument in writing, by a testament/will, by operation of law or by a decision of the Court.
DURATION OF A TRUST
Except for unit trusts, trusts set-up for a charitable purpose or trusts set-up as retirement funds in terms of the Special Funds (Regulation) Act, Cap 450, trusts come to an end upon the expiration of 100 years from their creation, unless they have been terminated or revoked before such date.
THE OFFICE OF THE “PROTECTOR”
For peace of mind that the trust is being managed by the trustee as according to the trust deed and/or letter of wishes, the trust may also provide for the office of a protector, the role of whom is to act as a supervisor over the trustee in order to ensure that the trustee manages the trust property in accordance to the settlor’s wishes and in a proper manner. The office of a protector is more common in the case of trusts where the settlor and the trustee reside in different jurisdictions.
WHO MAY ACT AS A TRUSTEE?
The person appointed to act as trustee under the trust can be either be (i) a natural person, (an “individual trustee”); or (ii) a corporate entity (a “corporate trustee”). Furthermore, no person may be appointed as a trustee if such person is interdicted or incapacitated or is an undischarged bankrupt, has been convicted of any of the crimes affecting public trust or of theft or of fraud or of knowingly receiving property obtained by theft or fraud; is a minor; or is subject to a Trustee Disqualification Order issued by the Malta Financial Services Authority (the “MFSA”).
Acting as a trustee may necessitate the application for MFSA approval when either the individual trustee or corporate trustee:
An exemption applies to certain persons such as banks licensed in Malta or in an approved jurisdiction, investment services license holders (either in Malta or in an approved jurisdiction); as well as in certain cases, such as trusts created for the purpose of holding security in relation to a financial transaction. The conditions for authorization vary depending upon whether the trustee is a natural person or a corporate entity. Furthermore, if the individual trustee qualifies as a “private trustee” no MFSA authorization is required, as briefly explained below:
The Licensed Individual Trustee
In order for a person to obtain authorization to act as an individual trustee, the following conditions must be satisfied:
The Non-licensed Individual Trustee / Private Trustee
The non-licensed individual trustee (the “private trustee”) is a person who agrees to act as a trustee because he is related to the settlor or he has known the settlor for at least ten years, and, in both cases, such trustee:
A private trustee is not required to apply for authorization from the MFSA. However, in order to provide some form of protection to the beneficiaries under the trust, the Trust and Trustees Act requires the observance of certain formalities and the involvement and oversight of a Notary Public.
A trustee company or corporate trustee must satisfy the following conditions in order to obtain a trustee license:
From an international perspective, Maltese trusts may provide certain tax planning opportunities whilst offering due protection, security and estate planning benefits that come with the creation of trusts.
The tax treatment of a Maltese trust depends on several factors, such as the residence of the trustee, settlor and beneficiaries, the nature of the trust property, the source of the income attributable to the trust as well as whether the income is distributed or not.
At the Settlement
The settlement of property on trust falls within the definition of a “taxable transfer” whereby the settlor is deemed to have realized a taxable gain on the difference in the market value of the property at the time of the settlement on trust and the cost of acquisition (taxable gain upon settlement = market value of property upon settlement – cost of acquisition).
Such a gain shall not, however, be taxable in Malta if the settlor is not resident or domiciled in Malta, and the assets of the trust are located or registered outside Malta and therefore the gain arises outside Malta. In addition, no tax is chargeable upon the settlement of property on trust, when:
The transfer may also be exempt from taxation by reason of the nature of the property settled on trust. For instance, the settlement of certain property on trust, such as coins, art, or antique furniture is not subject to tax on settlement. Furthermore, the settlement of property on trust fall outside the scope of the charge to duty on documents and transfers where the assets are located outside Malta.
 In terms of the Duty on Documents and Transfers Act, Chapter 364 of the laws of Malta
During the lifetime of the Trust
The Maltese trust is not regarded as a tax efficient vehicle for Maltese resident beneficiaries as the income distributed is taxed in the hands of the resident beneficiaries at the normal rates of taxation. However, the Maltese trust offers non-resident beneficiaries a highly attractive tax efficient vehicle.
Distribution of income
Trusts are generally considered to be transparent for tax purposes, meaning that income attributable to a trust is not charged to tax in the hands of the trustee if such income is distributed to the beneficiaries. When all the beneficiaries of a trust are non-Maltese residents and when all the income attributable to a trust does not arise in Malta (i.e. interest, royalties or profits on a disposal of shares in a company where the assets do not mainly consist of immovable property in Malta), there will be no tax impact under Maltese tax law.
Transfer of a beneficial interest
No Malta tax would be chargeable when transferring a beneficial interest in a trust which does not include Chargeable Property or by a beneficiary who is not ordinarily resident and domiciled in Malta if the trust in question does not include Chargeable Property situated in Malta.
Capitalisation of income
If, on the other hand, the trust income is not distributed to the beneficiaries, such income is charged tax in the hands of the trustee at the rate of 35%.
Under certain conditions, it may be advantageous for the trust income to be taxed in Malta. In this regard, it is allowed that the trustee opts to have the trust treated as a company for tax purposes resulting in the distributions of the profits to the beneficiaries being treated as if they were dividends distributed to shareholders of a company. This automatically results in the trust being subject to the full imputation tax system applicable to Malta companies, whereby the trust income will be subject to tax at the corporate rate of taxation of 35% and upon the distribution of dividends, the beneficiaries shall be entitled to a refund in part or in full of the Malta tax paid, resulting in very little tax leakage in Malta. Furthermore, once the trustee opts to have the trust treated as a company for tax purposes, the trust may also under certain conditions be able to benefit from the double taxation treaties to which Malta is a party.
Finally, in the case of mixed income, that is, income partly arising in Malta and income partly arising abroad, only income arising in Malta will be taxed.
VAT liability depends on whether the activity of the trustee can be considered as an “economic activity”. Generally, if the trustee receives a remuneration under the terms of the deed, this does not qualify as an economic activity and, accordingly, no VAT would be payable. However, if the trustee commercially exploits the trust property in return for a consideration (e.g. the leasing of trust property in return for a rent) such activity would constitute an economic activity and would be subject to VAT.
 Chargeable Property comprises solely of: immovable property, securities, business, goodwill, business permits, copyright, trademarks and any other intellectual property.
 Article 27D(1)(a) of the Income Tax Act, Chapter 123 of the laws of Malta.
Managing Director - Malta
JTC Group entities that carry on regulated business are (respectively): regulated by the British Virgin Islands Financial Services Commission; the Cayman Islands Monetary Authority; the Guernsey Financial Services Commission; the Jersey Financial Services Commission; the Commission de Surveillance du Secteur Financier and the Ordre des Experts-Comptables (Luxembourg); the Malta Financial Services Authority; the Financial Services Commission (Mauritius); De Nederlandsche Bank (Netherlands), the South African Financial Services Board as an authorised financial services provider; chartered and regulated to provide trust services by the South Dakota Division of Banking in South Dakota (USA); a member of l’Association Romande des Intermédiaires Financiers (Switzerland); licensed by the Isle of Man Financial Services Authority and authorised and regulated by the Financial Conduct Authority (UK).
L’Association Romande d’Intermédiaires Financiers (ARIF) is a self-regulated agency approved by the Swiss Financial Market Supervisory Authority (FINMA) for the supervision of financial intermediaries referred to in Article 2 para.3 of the Swiss Federal Act concerning the fight against money laundering and terrorist financing in the financial sector (LBA). ARIF is also recognised by FINMA as a professional organisation for the enactment of rules of conduct relating to the exercise of the profession of independent managers within the meaning of the Collective Investment Schemes Act (CISA).
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