Cayman Extends Tax Breaks Into 2015
by Jason Gorringe, Lowtax.net, London
31 December, 2014
The Government of the Cayman Islands has confirmed that specific duty concessions are to be extended for a further twelve months, until December 31, 2015.
The extended concessions include:
- The import duty concessionary rate of 12.5 cents per gallon for the importation of motor gasoline to Cayman Brac;
- The 100 percent import duty waiver on building materials imported to Cayman Brac and Little Cayman;
- The flat 15 percent import duty rate on building materials imported to Grand Cayman; and
- The 100 percent stamp duty waiver, in respect of land purchases on Cayman Brac.
The normal rate of import duty on motor gasoline is 75 cents per gallon, while the normal import duty rate on building material ranges from 17 percent to 22 percent.
Cayman Minister for Finance and Economic Development Marco Archer said, "The extension of these concessions is consistent with the Government's ongoing efforts to stimulate growth in the economy, and I encourage all developers and other stakeholders to accelerate their construction activity during this further concessionary period."
For the purpose of these concessions, building materials have been defined as: "All physical components and substances, whether solid or liquid, used in the construction, renovation, or restoration and forming a permanent part of any building or related structure." Items such as furniture, accessories, electronics, and appliances are specifically excluded.
The conditions and definitions for the 100 percent stamp duty waiver, in respect of land purchases on Cayman Brac, are:
- The stamp duty waiver will be for the development of accommodation dwelling (homes and apartments) and any other physical structure from which a business - whatsoever the nature of the business - can be carried on;
- The stamp duty waiver will be granted to both individuals and legal entities;
- Development is defined as construction being completed within two years of the purchase of the property;
- Completion is defined as when the development is fit for occupancy; and
- If the development of the property is not completed within two years and in the absence of a reasonable excuse, applicants are required to either pay the stamp duty in full plus a penalty of 10 percent of the stamp duty or request a further extension from the Minister for Finance and Economic Development to complete the development of the property.
See all of today's news