The Cayman Islands: An Extender of Value to the USA

This page has 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 the United States of America at a time when the USA is 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. The Cayman Islands has a long-standing relationship with the United States of America.

Global trade is an important cornerstone of the USA’s economic policy and the Cayman Islands is the world’s most popular global tax neutral financial hub for international investment, providing a proven, trusted, stable, tax-neutral, and well regulated environment designed to support global trade.

The Cayman Islands is a global extender of value for the United States, its businesses, and its citizens to be competitive through global trade, investing and financing activities, providing the ultimate platform that is dynamic enough to support the USA currently and as it enters a new era of global trade relations.

In order for the Cayman Islands to be able to best assist the USA, and for the USA to take maximum advantage of the opportunities available in the evolving global economy, it is imperative that the United States of America fully understands 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 the USA as it prepares 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
  • US businesses and jobs)
  • Inward infrastructure investing and financing
  • Liquidity for the US economy
  • US job growth
  • Increased tax base for the US
  • Global diversified investments for US pensioners
  • Free flow of global trade, capital, investing, financing, and services.

Read more in our booklet “The Cayman Islands: An Extender of Value to the USA”.

The following is a two-page summary, which can be downloaded here.

Tax Neutral

The Cayman Islands Tax Neutral regime for financial services transactions 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.

The policy for Cayman’s tax neutral regime for financial services transactions meets the criteria of an alternative tax policy model considered acceptable 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 recognizes 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 for financial services transactions uniquely meets the criteria of such an alternative tax policy model. 

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.

Read more in the Cayman Islands Tax Neutrality Overview, which you can download.

 

Cayman Islands Verified Ownership Regime

For over 15 years, the Cayman Islands has had a world class verified ownership regime in place and shared ownership information with international regulatory, enforcement and tax authorities in line with international standards and commitments to combat money laundering, tax evasion and terrorist financing.

Read more in our two-page summary below, which can be downloaded here.

 

 

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