Editing Trust (law) (section)

=== Cyprus ===
Cyprus legislators enacted the [http://www.olc.gov.cy/olc/olc.nsf/all/AF600F7D0BB6F306C2258187001E13D0/$file/The%20International%20Trusts%20Laws%201992%20to%202013.doc?openelement Cyprus International Trusts Law of 2012] with an aim to facilitate the establishment of trusts by non-Cypriot residents. The Cyprus International Trust is based on common law principles however the [http://www.olc.gov.cy/olc/olc.nsf/all/AF600F7D0BB6F306C2258187001E13D0/$file/The%20International%20Trusts%20Laws%201992%20to%202013.doc?openelement Cyprus International Trusts Law of 2012] introduces certain conditions and requirements to for the trust to qualify under the same law. These conditions are:

* The settlor must be of sound mind and of the right age.
* The settlor must not be a resident of Cyprus for at least 1 year prior to the establishment of the Cyprus International Trust.
* The beneficiaries must not be residents of Cyprus for at least 1 year prior to the establishment of the Cyprus International Trust.
* At least one trustee must be residing in Cyprus during the whole duration of the trust.

In addition to above the common law principles of certainty must be present.<ref name="HSharpe-2019a">{{Cite web|url=http://thecypruslawyer.com/cyprus-international-trust/|title=Overview of Cyprus International Trust|last=HSharpe|date=18 August 2019|website=The Cyprus Lawyer|language=en-US|access-date=2019-08-20|archive-date=20 August 2019|archive-url=https://web.archive.org/web/20190820074542/http://thecypruslawyer.com/cyprus-international-trust/|url-status=live}}</ref>

==== Settlor Powers provided by law ====
The Cyprus International Trust Law of 2012 also introduces certain settlor powers which if exercised will not invalidate the trust and or do not need to be inserted in the trust deed for the settlor to exercise them.<ref name="HSharpe-2019a" /> The powers introduced are:

* to revoke or amend the terms of a trust or any trusts or powers arising wholly or partly under it
* to advance, distribute, pay or otherwise apply income or capital of the trust property or to give directions for the making of such advancement, distribution, payment or application
* to exercise the powers of a director or officer or issue binding directions as to the appointment or removal of a director or officer of any company, wholly or partly owned by the trust;
* to give binding directions to the trustee in connection with the purchase, retention, sale, management, lending, pledging or charging of the trust property or the exercise of any powers or rights arising from such property;
* to appoint or remove any trustee, enforcer, protector or beneficiary;
* to appoint or remove any investment manager or investment adviser;
* to change the applicable law governing the trust or the forum for the administration of the trust;
* to restrict the exercise of any power or discretion of a trustee by requiring that they are only exercisable with the consent of the settlor or any other person expressly specified in the terms governing the trust.

==== Duration of Cyprus International Trust ====
Cyprus does not limit the duration of an international trust and it may be formed for an unspecified duration.<ref name="HSharpe-2019a" />

==== Charitable Trust and Purpose Trust ====
In accordance with Section 7, a Cyprus International Trust may be formed for one or more of the following purposes:

* the prevention or relief of poverty
* the advancement of education
* the advancement of religion
* the advancement of health or the saving of lives
* the advancement of citizenship or community development
* the advancement of the arts, culture, heritage or science
* the advancement of amateur sport
* the advancement of human rights, conflict resolution or reconciliation or the promotion of religious or racial harmony or equality and diversity
* the advancement of environmental protection or improvement
* the relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantages
* the advancement of animal welfare and protection of animals;
* any other purpose beneficial to the public in general or which may reasonably be considered to be relevant to any of above

==== Confidentiality of Cyprus International Trust ====
The law includes specific confidentiality obligations over the trustee, the protector, enforcer or any other person to keep information and details of the trust confidential. This right is waived in the instances that law requires the disclosure of such information or if a judge before which a case is tried in issues a judgment to such effect. Nevertheless, with the changing times, public disclosure of trusts is required in Cyprus.<ref name="HSharpe-2019b">{{Cite web|url=http://thecypruslawyer.com/public-disclosure-of-cyprus-international-trust/|title=Public disclosure of Cyprus International Trust|last=HSharpe|date=18 August 2019|website=The Cyprus Lawyer|language=en-US|access-date=2019-08-20|archive-date=20 August 2019|archive-url=https://web.archive.org/web/20190820074539/http://thecypruslawyer.com/public-disclosure-of-cyprus-international-trust/|url-status=live}}</ref> Such public disclosures are required:

===== Stamp Duty Commissioner for validating the creation of the Cyprus International Trust<ref name="HSharpe-2019b" /> =====
For a trust to be validly constituted it must be presented to the commissioner of stamp duty and a one-time payment of Euro 430 is made. The commissioner does not keep a copy of the document.

===== Regulatory Disclosure of ASPs managing a Cyprus International Trust<ref name="HSharpe-2019b" /> =====
The regulation of the industry providing company and trust management functions (ASP) has also brought about the requirement to disclose to the regulator the existence of a Cyprus International Trust. Such obligation burdens the trust company and the information disclosed is the following:

* The date the trust was created
* The name of the trust
* The name and particulars of the trustee
* The governing law of the trust

For the avoidance of any doubt, the regulator does not require particulars of the Settlor, the Beneficiaries and details of the trusts. Neither does the regulator store in any way the trust deed. On the contrary, they rely on the regulated entity to collect, store and update this information

===== Cyprus Beneficial Owner Register and Cyprus International Trust<ref name="HSharpe-2019b" /> =====
The Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007-2018<ref>{{Cite web|url=https://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=94659b77-3789-4866-863a-2d23e4a58ebd|title=The Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007-2018|date=20 August 2019|website=CySEC|access-date=20 August 2019|archive-date=20 August 2019|archive-url=https://web.archive.org/web/20190820074549/https://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=94659b77-3789-4866-863a-2d23e4a58ebd|url-status=live}}</ref> introduced mandatory disclosure requirements in respects to trusts. Generally known as the Cyprus Beneficial Ownership Register.<ref>{{Cite web|url=http://thecypruslawyer.com/cyprus-beneficial-ownership-register/|title=Cyprus Beneficial Ownership Register|last=HSharpe|date=18 July 2019|website=The Cyprus Lawyer|language=en-US|access-date=2019-08-20|archive-date=4 August 2019|archive-url=https://web.archive.org/web/20190804175515/http://thecypruslawyer.com/cyprus-beneficial-ownership-register/|url-status=live}}</ref> Subject to this the following information will be required to be mandatory disclosed:

* The settlor
* The trustee
* The protector
* The beneficiary or the class of beneficiaries if they have not been identified yet
* Any other person exercising control over the trust

The actual implementation of this law still remains to be seen however the requirements above are expressly extracted from The Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007–2018.

===== FATCA<ref name="HSharpe-2019b" /> =====
Under the Foreign Account Tax Compliance Act (FATCA) a Trustee and or a Trust may be classified as a Foreign Financial Institution (FFI) requiring registration with the IRS and disclosure of results on a yearly basis.

===== CRS<ref name="HSharpe-2019b" /> =====
Under the Common Reporting Standard decree, a trust would in most cases classify as either a Reporting Financial Institution (FI) or a Passive Non-Financial Entity (Passive NFE). If the trust is an FI the trust or the trustee will have an obligation to report to its local tax authority in Cyprus in respects to the reportable accounts.

==== Taxation of Cyprus International Trust<ref name="HSharpe-2019a" /> ====
The income and profits derived within and outside of Cyprus are liable to every possible taxation imposed in Cyprus if the beneficiary is a resident of Cyprus in accordance with the Income Tax Laws of Cyprus.

If the beneficiaries are not Cyprus residents then any income and profit derived from Cypriot sources will be subject to tax.

Relevant to consider is what income is subject to taxation in Cyprus and the none domicile regime applicable in Cyprus.