| CAYMAN ISLANDS |
| KnowYourCountry |
A. Taxes payable
Federal taxes and levies
Company tax
The Cayman Islands levies no taxes on income. Companies incorporated in the Cayman
Islands are governed by the Companies Law and its amendments. This also regulates
foreign corporations with a place of business in the islands.
An ordinary resident company is used for doing business locally and to own local land,
ships or aeroplanes registered locally. Ordinary non-resident or exempt companies are
used for conducting offshore or international business. The main differences between
these two types of company are that an exempt company is allowed to issue bearer
shares, use foreign terms in its name, and has fewer filing formalities.
Foreign companies may register a place of business in the Cayman Islands and conduct
offshore business. In the case of Banks, a foreign Bank may set up a branch operation by
this method. All banks registered in the Cayman Islands must have a physical presence
there.
Guarantees against the future taxation of exempted companies, exempted limited
partnerships and exempted trusts are available. The Governor in council gives an
undertaking that no future law imposing any tax on profits, capital assets, gain, or
appreciations will apply to the entity or its operations for a period of 20 to 30 years
for an exempted company, and up to 50 years for exempted partnerships and trusts.
Capital gains tax
There is no capital gains tax in the Cayman Islands.
Other taxes
The principal indirect taxes from which the government derives its income are stamp
duties, customs duties, business licences and fees.
Stamp duties
The Stamp Duty Law provides for the payment of tax on various documents including:
Real estate in specified blocks in West Bay and George Town 7.5% of the consideration
Conveyance or transfer of immovable property 4% of the consideration if the transferee is a Caymanian - 6% of the consideration in any
other case
Mortgage of property 1% to 1.5% of sum secured
Bills of exchange:
Cheques CI$0.25 each
Others CI$0.25 not exceeding $100
CI$0.25 each for every extra $100 or part thereof up to a maximum of $250
Lease of land:
Term over 30 years Same duty as on a conveyance on sale upon the full value of the property of interest therein
With premium and term of less than 30 years Same duty as on a conveyance on sale upon the premium or other consideration
Term is less than 30 years:
- but does not exceed five years 5% of the average annual rent
- exceeds five years but not ten years 10% of the average annual rent
- exceeds ten years 20% of the average annual rent
Customs duties
Duties on imported goods average 22% with certain items duty free. These include certain agricultural products, certain textiles and luxury items
such as perfumes, cameras, fine china and crystal.
Business licences and fees
An annual fee is levied on all companies based on its share capital. In addition, licensed financial services companies pay annual licence fees,
dependent on the type of business.
Class A Bank
CI$ 600,000
Class B Bank (unrestricted)
CI $ 60,000
Class B Bank (restricted)
CI $ 37,000 to CI $ 40,000
Class A Insurers Licence
CI $ 50,000
Unrestricted Class B Insurers Licence
CI $ 8,500
Restricted Class B Insurers Licence
CI $ 8,500
Mutual Fund Licence Fee
CI $ 3,000
All local businesses require a licence and an annual payment is made dependent on the type and size of the business. These fees would not
normally affect offshore companies and businesses.
H. Personal tax
There are no taxes on income, capital gains or sales of real estate. Neither are there any death duties nor inheritance or gift taxes.
I. Treaty and non-treaty withholding tax rates
The Cayman Islands does not have a tax treaty with any country. Income received in the Cayman Islands from abroad may be subject to
taxation in the country of origin.
The Cayman Islands have signed a Tax Information Exchange Agreement (TIEA) with the following countries: Argentina, Aruba, Australia,
Canada, Curacao, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Guernsey, Iceland, India, Ireland, Japan, Mexico,
Netherlands, New Zealand, Norway , Portugal, Saint Marteen, South Africa, Sweden, , United Kingdom, and United States of America .
_________________________________________________________________________________________________________________
Federal taxes and levies
Company tax
The Cayman Islands levies no taxes on income. Companies incorporated in the Cayman
Islands are governed by the Companies Law and its amendments. This also regulates
foreign corporations with a place of business in the islands.
An ordinary resident company is used for doing business locally and to own local land,
ships or aeroplanes registered locally. Ordinary non-resident or exempt companies are
used for conducting offshore or international business. The main differences between
these two types of company are that an exempt company is allowed to issue bearer
shares, use foreign terms in its name, and has fewer filing formalities.
Foreign companies may register a place of business in the Cayman Islands and conduct
offshore business. In the case of Banks, a foreign Bank may set up a branch operation by
this method. All banks registered in the Cayman Islands must have a physical presence
there.
Guarantees against the future taxation of exempted companies, exempted limited
partnerships and exempted trusts are available. The Governor in council gives an
undertaking that no future law imposing any tax on profits, capital assets, gain, or
appreciations will apply to the entity or its operations for a period of 20 to 30 years
for an exempted company, and up to 50 years for exempted partnerships and trusts.
Capital gains tax
There is no capital gains tax in the Cayman Islands.
Other taxes
The principal indirect taxes from which the government derives its income are stamp
duties, customs duties, business licences and fees.
Stamp duties
The Stamp Duty Law provides for the payment of tax on various documents including:
Real estate in specified blocks in West Bay and George Town 7.5% of the consideration
Conveyance or transfer of immovable property 4% of the consideration if the transferee is a Caymanian - 6% of the consideration in any
other case
Mortgage of property 1% to 1.5% of sum secured
Bills of exchange:
Cheques CI$0.25 each
Others CI$0.25 not exceeding $100
CI$0.25 each for every extra $100 or part thereof up to a maximum of $250
Lease of land:
Term over 30 years Same duty as on a conveyance on sale upon the full value of the property of interest therein
With premium and term of less than 30 years Same duty as on a conveyance on sale upon the premium or other consideration
Term is less than 30 years:
- but does not exceed five years 5% of the average annual rent
- exceeds five years but not ten years 10% of the average annual rent
- exceeds ten years 20% of the average annual rent
Customs duties
Duties on imported goods average 22% with certain items duty free. These include certain agricultural products, certain textiles and luxury items
such as perfumes, cameras, fine china and crystal.
Business licences and fees
An annual fee is levied on all companies based on its share capital. In addition, licensed financial services companies pay annual licence fees,
dependent on the type of business.
Class A Bank
CI$ 600,000
Class B Bank (unrestricted)
CI $ 60,000
Class B Bank (restricted)
CI $ 37,000 to CI $ 40,000
Class A Insurers Licence
CI $ 50,000
Unrestricted Class B Insurers Licence
CI $ 8,500
Restricted Class B Insurers Licence
CI $ 8,500
Mutual Fund Licence Fee
CI $ 3,000
All local businesses require a licence and an annual payment is made dependent on the type and size of the business. These fees would not
normally affect offshore companies and businesses.
H. Personal tax
There are no taxes on income, capital gains or sales of real estate. Neither are there any death duties nor inheritance or gift taxes.
I. Treaty and non-treaty withholding tax rates
The Cayman Islands does not have a tax treaty with any country. Income received in the Cayman Islands from abroad may be subject to
taxation in the country of origin.
The Cayman Islands have signed a Tax Information Exchange Agreement (TIEA) with the following countries: Argentina, Aruba, Australia,
Canada, Curacao, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Guernsey, Iceland, India, Ireland, Japan, Mexico,
Netherlands, New Zealand, Norway , Portugal, Saint Marteen, South Africa, Sweden, , United Kingdom, and United States of America .
_________________________________________________________________________________________________________________
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Since 1994, the PKF network of independent member firms, which is administered by
PKF International Limited, has produced the PKF Worldwide Tax Guide (WWTG). The
report below is extracted from the 2010 WWTG and reproduced with the kind permission of
PKF International Limited. Before continuing, please read the Important Disclaimer below.
________________________________________________________________________
IMPORTANT DISCLAIMER:
This report should not be regarded as offering a complete explanation of the taxation matters that are
contained within this report.
This report has been made available on the express terms and understanding that the publishers and the
authors are not responsible for the results of any actions which are undertaken on the basis of the
information which is contained within this report, nor for any error in, or omission from, this report.
The publishers and the authors expressly disclaim all and any liability and responsibility to any person,
entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of
the contents of this report.
Accordingly no person, entity or corporation should act or rely upon any matter or information as contained
or implied within this report without first obtaining advice from an appropriately qualified professional
person or firm of advisors, and ensuring that such advice specifically relates to their particular
circumstances.
PKF International is a network of legally independent member firms administered by PKF International
Limited (PKFI). Neither PKFI nor the member firms of the network generally accept any responsibility or
liability for the actions or inactions on the part of any individual member firm or firms.
________________________________________________________________________
PKF International Limited, has produced the PKF Worldwide Tax Guide (WWTG). The
report below is extracted from the 2010 WWTG and reproduced with the kind permission of
PKF International Limited. Before continuing, please read the Important Disclaimer below.
________________________________________________________________________
IMPORTANT DISCLAIMER:
This report should not be regarded as offering a complete explanation of the taxation matters that are
contained within this report.
This report has been made available on the express terms and understanding that the publishers and the
authors are not responsible for the results of any actions which are undertaken on the basis of the
information which is contained within this report, nor for any error in, or omission from, this report.
The publishers and the authors expressly disclaim all and any liability and responsibility to any person,
entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of
the contents of this report.
Accordingly no person, entity or corporation should act or rely upon any matter or information as contained
or implied within this report without first obtaining advice from an appropriately qualified professional
person or firm of advisors, and ensuring that such advice specifically relates to their particular
circumstances.
PKF International is a network of legally independent member firms administered by PKF International
Limited (PKFI). Neither PKFI nor the member firms of the network generally accept any responsibility or
liability for the actions or inactions on the part of any individual member firm or firms.
________________________________________________________________________
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20 September 2011 - Peer review
supplementary report focusing on legal
frameworks which allow for transparency and
exchange of tax information now available.
Key Findings:
The Cayman Islands has moved quickly to
address the shortcomings identified in its 2010
review in respect of the availability of
accounting records. In addition, the
supplementary report recognises the 5 new tax
information exchange agreements signed by
the Cayman Islands, and removes the concern
originally raised with respect to nominees and
the availability of ownership information. Some
other recommendations concerning the
availability of ownership and identity information
remain and these will be considered in the
phase 2 review of the Cayman Islands, to take
place in the second half of 2012.
To view report click here
supplementary report focusing on legal
frameworks which allow for transparency and
exchange of tax information now available.
Key Findings:
The Cayman Islands has moved quickly to
address the shortcomings identified in its 2010
review in respect of the availability of
accounting records. In addition, the
supplementary report recognises the 5 new tax
information exchange agreements signed by
the Cayman Islands, and removes the concern
originally raised with respect to nominees and
the availability of ownership information. Some
other recommendations concerning the
availability of ownership and identity information
remain and these will be considered in the
phase 2 review of the Cayman Islands, to take
place in the second half of 2012.
To view report click here
| Last Updated: 7 April 2012 |