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A well-known tax haven, Cayman Islands has established a name for itself, housing corporations that in numbers, are more than double its total population. Cayman Islands might still linger in your memory from its appearance in the late 90s Tom Cruise film “The Firm”. But, in recent years, Cayman Islands has further glammed its image, opening up tourism and global business opportunities. Similar to the British Virgin Islands, this tax haven does not have corporate tax, making it a highly ideal place for businesses to invest and do business through Cayman Islands.
Additionally, residents of Cayman Islands are not required to pay any direct taxes. Residents are exempted from income tax, property tax, capital gain tax, and withholding tax.
The taxation system in Cayman Islands imposes no direct taxes, but instead taxes on tourism, duty goods, and financial transactions. Additionally, all offshore companies are required to pay an annual licensing fee directly to the Cayman Island’s government. Taxes are overseen by the Department for International Tax Cooperation and follow the Common Reporting Standard (CRS) for automatic exchanges of financial accounting information for tax purposes.
Cayman Islands as a tax haven provide a highly attractive platform for foreign individuals and businesses to conduct banking services. These foreign parties are able to avoid paying income taxes in their countries of residence through the use of Cayman Islands’ offshore banking services.
Other Taxes Imposed
|
Type of Tax |
Level of Tax |
|
Stamp Duty Tax |
7.5% |
|
Import Duty Tax |
22%* *Dependent on the type of goods imported |
This article does not constitute legal advice.
The opinions expressed in the column above represent the author’s own.
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