Cayman Islands: Domestic Taxation
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, and stamp duty at rates up to 1.5% on mortgages of KYD300,000 or higher; however issues of securities, mutual fund shares or units are normally exempt from stamp duty.
In an effort to reduce the budget deficit, the government proposed in the 2012 budget to introduce a 10% payroll tax on expatriate workers. The 'Community Enhancement Fee' was to be applied to all foreign employees with an income from employment of USD43,200 (originally set at USD24,000). However, fierce opposition from business leaders and the financial services sector resulted in the proposal being dropped, for now....