• Cayman Tax System

  • GENERAL

    The Cayman Islands do not levy corporation tax, capital gains tax or any other direct taxes on companies.

  • TAX RESIDENCY

    Tax Residency

    Not applicable since the Cayman Islands do not levy corporation tax.

    Taxable Basis

    Not applicable since the Cayman Islands do not levy corporation tax.

  • TAX ADMIN

    Taxable Period

    Not applicable since the Cayman Islands do not levy corporation tax.

    Tax Returns

    There is no requirement for companies in the Cayman Islands to submit a tax return since there is no corporation tax.

    Tax Assessments

    Not applicable since the Cayman Islands do not levy corporation tax.

  • CORPORATION TAX

    Corporation Tax

    The Cayman Islands do not levy corporation tax.

  • DIVIDENDS

    Dividends from Foreign Investments

    Dividend income of a Cayman Islands company from foreign investments is not taxable in the Cayman Islands.

    Dividends from Local Investments

    Dividend income of a Cayman Islands company from local investments is not taxable in the Cayman Islands.

    Withholding Tax on Dividends

    Dividend payment by a Cayman Islands company to a foreign shareholder (company or individual) does not suffer any withholding tax.

    Dividend payment by a Cayman Islands company to another Cayman Islands company does not suffer any withholding tax.

  • INTEREST

    Interest Income

    Interest income is not taxable in the Cayman Islands.

    Interest Expense Deductibility

    Interest expense is not tax-deductible since interest income is not taxable.

    Withholding Tax on Interest

    The Cayman Islands does not impose any withholding tax on interest payments to foreign recipients.

    There is no withholding tax on the payment of interest by one Cayman Islands company to another Cayman Islands company.

  • ROYALTIES

    Royalty Income

    Royalty income is not taxable in the Cayman Islands.

    Royalty Expense Deductibility

    The Cayman Islands does not impose any withholding tax on royalty payments to foreign recipients.

    Withholding Tax on Royalties

    Royalty expense is not tax-deductible since royalty income is not taxable.

  • TAX LOSSES

    Ordinary Tax Losses

    Not applicable since the Cayman Islands do not levy corporation tax.

    Group Relief

    Not applicable since the Cayman Islands do not levy corporation tax.

  • CAPITAL GAINS

    Disposal of Shares by Foreign Shareholder

    The profit on disposal of a Cayman Islands company by its foreign shareholder is exempt from taxation in the Cayman Islands.

    Capital Gains

    Capital gains are not taxable in the Cayman Islands.

    Capital Losses

    Not tax-deductible since capital gains are not taxable.

  • PARTNERSHIPS

    Partnership Profits

    General and Limited partnerships are treated as transparent entities for tax purposes which means that their profits are taxed directly in the hands of each partner.

  • BRANCHES

    Branch Profits

    A Branch is treated in the same manner as other types of companies in the Cayman Islands and therefore not subject to any tax.

    There is no tax in the Cayman Islands on the remittance of the profit of a Cayman Islands Branch to its foreign head office.

  • STAMP DUTY

    Stamp Duty

    Stamp duty is imposed at various rates on the transfer of land/property in the Cayman Islands and execution of certain documents at 7.5% or 9%.

  • CAPITAL DUTY

    Capital Duty

    There is no capital duty in the Cayman Islands.

  • VAT

    The Cayman Islands do not levy VAT.