This is organised as a limited company. Although it is the simplest structure for a VCI, a serious drawback is the double taxation of income. Both the investment company and its shareholders are liable to tax on their respective incomes.
This is a company and is generally, not liable to tax on chargeable gains dividends but most of the other income of the trust is taxable. The entitlement to tax concessions is subject to certain stipulations such as income should he derived wholly mainly from investment in shares securities, holding in any single company other than another investment trust should not exceed 15 per cent of the value of the investment, the shares are listed, it distributes at least 85 per cent of the income from shares securities and so on.
Offshore Investment Company
This is incorporated in a country other than the country in which the offshore company makes an investment. Its tax liability depends on the tax laws applicable to the resident status of the company.
Offshore Unit Trust
This resembles an offshore investment company in organisation but enjoys tax concessions and has a very flexible structure.