In
the Cayman Islands there are no taxes other
than import duties (at varying rates), stamp
duty at rates up to 7.5% on transfers of real
estate (9% in certain areas), and stamp duty
at rates up to 1.5% ad valorem on legal documents
dealing with valuable assets or transactions;
however issues of securities, mutual fund shares
or units are normally exempt from stamp duty.
See Types of Company
for details of annual fees payable by companies,
and Offshore Legal
and Tax Regimes for details of fees
payable by various types of financial institution
and in respect of listing on the Cayman Islands
Stock Exchange.
During
2003 the Cayman government battled to avoid
inclusion in the scope of the EU's Savings Tax
Directive, but in the end was forced to give
in by the UK Treasury, and applied the information
exchange model under the Directive from 1st
July, 2005. This means that information about
interest on savings paid to citizens of European
member states is being forwarded to the tax
authorities of the member state in question.
The
Cayman Islands authorities have put a brave
face on this development, which they tried hard
to avoid.
The
Cayman Island’s Financial Secretary Mr George
McCarthy said: "International business is attracted
to the Cayman Islands because of the critical
mass of experienced professional advisers, our
robust and effective regulatory system, innovative
products and services and an approach to tax
which is business-friendly. We have signed and
implemented commitments on tax transparency.
We have consistently asked for fairness - a
level playing field and equitable treatment.
It is not a case of us asking to be let into
your ports 'for a bit of financial raiding',
but of the Cayman Islands correcting decades
of negative spin by competing onshore financial
centres."
In
return for Cayman's acceptance of the Directive,
the UK agreed to pursue discussions on a Double
Tax Avoidance Treaty.
