Overview of Samoa

Government and Administration:

Samoa has a Westminster styled Parliamentary democracy. Its written constitution provides for a Head of State, a Prime Minister and a Cabinet of Ministers, and a Legislative Assembly. Parliamentary elections are held every five (5) years. There are two (2) major political parties both of whom strongly support our International Finance Centre.

Samoa is a member of the British Commonwealth, the United Nations, the International Monetary Fund, the Asian Development Bank and an associate member of the European Economic Community (EEC).

ECONOMY & MONETARY SYSTEM

The Samoan economy is traditionally based on agriculture with a high dependence on external personal remittances and external development aid. Despite the challenging environment from 2002-06, the economy grew at an average real rate of 3.5percent per annum. Samoa’s real GDP is now estimated to have reached Samoan Tala $1.03billion at the end of 2006. Samoa’s real GDP per capita is now estimated to be USD$2,078 assuming a population of 179,186 at end of 2006.

With modernisation, Samoa has diversified its economic base with the manufacturing and service sectors now becoming significant contributors to GDP, driven mainly by the leading industries “Commerce”, “Transport and Communication”, “Construction” and “’Business and finance service” sectors. Significant changes to the structure of GDP in the late 1990s have been registered with the decline of agriculture and emergence of the fisheries, and tourism sectors. The expanding tourism sector and diversification of exports have improved the balance of payments outlook significantly.

The exchange rate of the local currency, the Tala (SAT), is measured against the basket of currencies of its six major trading partners. The basket is reviewed periodically to ensure that exchange rates are in line with changing economic and market conditions. The Central bank’s exchange rate policy is aimed primarily at supporting the balance of payments, whilst ensuring that Samoa maintains its competitiveness vis a vis its major trading partners. At 31 August 2007, $1US equalled approximately SAT$2.61. Transactions in the International Finance Centre cannot be conducted in Tala.

There is general optimism and relatively high confidence about Samoa’s economic prospects buttressed by positive assessments conducted by international organisations like the International Monetary Fund (IMF) and the Asian Development Bank (ADB) regarding Samoa’s policy planning and management capabilities and the medium term economic prospects for the economy.

Additionally, Samoa is also likely to be graduated in late 2007 from its least developed country status by the United Nations General Assembly as a result of major economic transformations which occurred in the past decade resulting in an average real GDP growth rate of 3 percent.

LEGAL SYSTEM

The laws of Samoa have their foundations in English and Commonwealth statutory and common law. Although the six Acts that form the basis of the International Finance Centre are based on English law, they include laws adapted from other financial centres, updated and streamlined to provide the most progressive and acceptable laws of any international finance centre.

INFRASTRUCTURE AND COMMUNICATIONS

Samoa’s local infrastructure is well developed. The latest infrastructural developments include major innovations in airline transportation and telecommunications. The modern international airport can accommodate 747 type aircrafts and is serviced by Polynesian Blue (a recent merger between the national carrier Polynesian Airlines and Virgin Blue) Air New Zealand and Air Pacific. There are direct flights or connections to the USA, Australia, and New Zealand, etcetera.

Samoa’s ability to compete in global markets especially with the services sector will be enhanced by our link to an international marine telecommunications cable by early 2009. Being the 2007 host of the South Pacific Games provided the impetus for the construction of a wide range of world class sporting facilities in Apia which provide the opportunities for sports related tourism activities. Other major developments in constructions that are planned in the next few years include Government offices for the Ministry of Justice, and a sewerage treatment plant.

The main harbour in Apia has been extended to accommodate large passenger and cargo ships. Shipping services are regular to and from Europe, West Coast USA, Japan, Australia, and New Zealand, etc. The international telephone system is first class and is directly accessible by direct dial under the country code (685). Internet and broadband services are available together with cellular telephones. All international services including courier are available 24hours a day.

EXEMPTION FROM TAXATION AND EXCHANGE CONTROLS

Except for trustee companies, no taxes or duties (whether direct or indirect) are payable by any of the entities registered under any of the international finance legislation (e.g./international companies, trusts, banks and insurance companies) on their profits or gains, or upon transactions and contracts. Additionally, no currency or exchange control regulations apply to the taking or sending of any foreign currency out of Samoa by any of the offshore entities via the banking sector. There are however customer due diligence requirements (CDD) imposed under the Money Laundering Prevention legislation which applies to all financial institutions which include trustee companies, banks, lawyers and accountants.

CONFIDENTIALITY

Confidentiality is a desirable feature of any International Finance Centre and serves a legitimate purpose in the offshore sector. The need for confidentiality however needs to be balanced against any potential misuse or abuse of vehicles we offer. Gateway provisions therefore exist in the international finance legislation, in addition the Proceeds of Crime, Mutual Assistance in Criminal Matters and Money Laundering Prevention Acts 2007.

Introduction

This website serves to provide prospective investors seeking information on the Samoa International Finance Centre. It covers the requirements of the prevailing offshore legislation of the Principal Acts-

International Companies Act 1987
International Banking Act 2005
International Trusts Act 1987
Trustee Companies Act 1987
International Insurance Act 1988
International Partnership and Limited Partnership Act 1998
Samoa International Finance Authority Act 2005
Segregated Fund International Companies Act 2000
International Mutual Funds Act 2008
Electronic Transactions Act 2008

Potential users of the Samoa International Finance Centre and in particular those seeking to establish and maintain structures for the minimisation of taxes or to protect assets, are advised to consult with internationally experienced lawyers, accountants or other professional advisors in their country of residence or in the country from which income is generated, before they implement an offshore structure.

LOCATION AND HISTORY

Samoa is literally translated as “Sa” meaning sacred and “Moa” meaning Centre. i.e./The sacred centre of the universe. Likewise, it is physically located in the middle of the Pacific Ocean between Hawaii in the north and New Zealand in the south, and is often referred to as the heart of Polynesia.

Samoa’s European history began with its discovery by Dutch explorer Jacob Roggerveen in 1722 with accelerated involvement of European missionaries and traders in the mid 19th century. Samoa became a German colony following the Treaty of Berlin in 1899 when the United States of America took control of Eastern Samoa (now known as American Samoa) while Western Samoa was adopted to separate the islands.

Under the 1919 Treaty of Versailles, Samoa was awarded to New Zealand as a League of Nations mandate. After World War II, Samoa became a United Nations Trust Territory under New Zealand administration. Samoa with a current population of about 180,000 became the 1st island in the South Pacific to gain independence in 1962.