Cayman Islands Tax Neutrality Explained

“The Cayman Islands Tax Neutrality Explained” is a one-page flyer explaining how the Cayman Islands is a tax neutral hub that efficiently supports global economic growth and recovery. Additionally, it highlights how Cayman’s Tax Neutral policy automatically alleviates double taxation by allocating all of the taxing rights to the other country which is free to impose its domestic tax policy on the cross-border transactions with Cayman as it sees fit, without the need for a tax treaty.

Cayman Islands Tax Neutrality Overview

The Cayman Islands Tax Neutral regime is a globally responsible tax model that is simple and transparent, and efficiently supports the global free flow of investment capital and financing without posing tax harm to other
countries’ tax bases.

As the Cayman Islands is tax neutral, it adds no additional tax to financial services transactions in its jurisdiction. Investee entities and investors are still subject to reporting and paying their relevant taxes in their home jurisdictions.

In addition, the Cayman Islands meets globally accepted standards for transparency and cross border cooperation with tax authorities and law enforcement.

Cayman’s Tax Neutral policy is supported by United Nations and OECD Model Conventions. While the OECD Model Tax Convention on Income and Capital gives guidance on the use of Double Taxation Treaties to address the burden of double taxation on cross border economic activities, it also recognises alternative tax policy models for addressing (i) double taxation, (ii) tax conflict mediation, and (iii) tax information sharing to protect against tax evasion and aggressive tax avoidance. The Cayman Islands Tax Neutral regime meets the criteria of such an alternative tax policy model.

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Extender of Value Booklets

These booklets have been developed by Cayman Finance to share information about the essential role of the Cayman Islands Financial Services Industry in the global economy, and particularly highlight how the Cayman Islands is an extender of value and an important partner to countries around the world at a time when the these countries are in an era of evolving global trade relations and other important changes in the global economy.

The Cayman Islands is a premier global tax neutral financial hub that efficiently connects law abiding users and providers of investment capital and financing around the world.

In order for the Cayman Islands to be able to best assist G20 and other counties and for those countries to take maximum advantage of the opportunities available in the evolving global economy, it is imperative that they fully understand the beneficial role played in global financial services by the Cayman Islands.

The Cayman Islands, through its pivotal role in international investing and financing, supported by its robust and well-regulated financial services industry, can help G20 and other countries as they prepare for the evolving changes in global trade and the global economy by providing unparalleled access to:

  • Foreign Direct Investment or “FDI” (essential to save or grow businesses and jobs)
  • Inward infrastructure investing and financing
  • Liquidity for economies
  • Job growth
  • Increased tax base
  • Global diversified investments for pensioners
  • Free flow of global trade, capital, investing, financing, and services.

The Cayman Islands: An Extender of Value to the USA

January 2020

The Cayman Islands: An Extender of Value to Brazil

November 2019

The Cayman Islands: An Extender of Value to the UK

August 2019

The Cayman Islands: An Extender of Value to the European Union

June 2019