O.E.C.D. Income Tax Deferred Overseas Retirement Plan


A recognized, registered and regulated foreign retirement plan.

Internationally there are occupational retirement plans. The International Organization of Pension Supervisors (IOPS) covers this whole area, and also if you look at the E.U. Directive itself the whole idea behind these laws and legal concepts is primarily to do with people’s work. It is in regards to the work of people that the laws give favourable tax treatment.

What these governments are saying is that if you are going to work and you save part of that income for retirement then we will give you legal breaks on that money because it is different than other types of money.

As a result this matrix of laws is designed to give preferential treatment not only to the retirement plan as a structure but also to what the fund can do with that money, how they invest and how membership can be protected.

Foreign regulated, recognized and registered occupational retirement plans are deemed complaint and EXEMPT.

For investment capital pre-tax contribution, tax deferred accumulations and regulatory compliance are brought to you by this ORS402(b) government regulated, registered and recognized as:

  • Exempt from Foreign Account Tax Compliance Act (FATCA) reporting
  • Exempt from O.E.C.D. Common Reporting Standard (CRS) reporting
  • Exempt from Alternative Investment Fund Managers Directive (AIFMD)
  • Exempt from reporting the O.E.C.D. Common Reporting Standard and the Automatic Exchange of Information (AEOI)-93 jurisdictions.

Most 3rd country nationals working overseas are localized as foreign residents.

It is rare today for anyone to be working overseas under an “expat contract” (tax wise equalized as if they are working in the USA) and U.S. regulations were difficult to handle for human resource departments at multinationals overseas.

Most commonly found are three “typical” options available to a strategically mobile person posted abroad. For a 3rd country national many of the same functionalities or benefits are required and they can be grateful if their tax compliance issues are not complicated at present.

Three Typical Retirement Plan Options

Option 1: Contribute to your plan back home. Negatives: Which means that when you have no home country sourced income then a home country plan may not be possible.

Option 2: Go native. Most if not all countries where an overseas person may be posted have some variation of a government regulated retirement plan with pillars or private savings etc. Positives: it is easy to set up. Negative: is a mobile employee really going to be there for the required compliance period? Countries have minimum periods of contributions. Also, is the contribution amount viable to a comfortable future retirement for this particular employee’s requirement?

Option 3: After tax contributions. Variations on this idea, such as trusts and insurance, the key disadvantage is that the contributions are not deductible or excluded from tax and for how long can you depend upon your employer to cover this premium?

The ORS 402(b) Retirement Plan alternative

This integrated legal framework, specified in foreign country statutory retirement law, requires that so long as the contributions, the accumulations of income and gains on the contributions, together or separately, are never vested in the member, not by contract nor by law, the result will be Tax Deferral. Therefore, contributions will not expose the member employee to current year taxable income and accumulation within the employer benefit service agreement are turbo-charged tax deferred.

The jurisdiction of the plan requires that in domestic law retirement plans are never part of the personal estate, they are not vested until they are vested.

Legal advice will not override statutory law because to do so would be to invent rather than interpret the law.


There are no reviews yet.

Be the first to review “O.E.C.D. Income Tax Deferred Overseas Retirement Plan”

Silicon Palms