Tax and Accounting Regulations
A coherent offshore planning tax strategy is essential to maximize the effectiveness of offshore companies. Eltoma can assist by structuring the most tax efficient strategy to satisfy your requirements. Eltoma will guide you as to which jurisdictions offer the best tax structure by identifying the types of tax payable as well as applicable exemptions and incentives. Eltoma will provide tax planning advice that will identify which is the most favourable, tax efficient jurisdiction in which to incorporate.
Below is an overview of the tax and accounting regulations for Exempt Companies in the Cayman Islands:
There are no forms of taxation in the Cayman Islands relating to individuals, corporations or trusts hence there are no taxes on the following:
- Capital Gains
- Capital Transfers
International Aspects of Cayman Islands Taxation:
- Anti-Avoidance Regulation – The Cayman Islands have implemented the ‘Mutual Legal Assistance Treaty’ in order to assist foreign governments with regards to money laundering and illegal activities
- System of Double Taxation Treaties – There are no double taxation treaties with other parts of the world but instead the Cayman Islands have agreed to assist foreign governments where they believe illegalities and criminal acts have taken place. This assistance does not cover tax offences therefore the government would not disclose information in the light of any allegations of tax offences were made
Annual Reporting Requirements:
- No requirement to file formal accounts every year but a simple annual declaration must be filed which is a declaration of any changes made to the structure of the company and also confirms that the company has been operating outside of the Cayman Islands
CJEU: Defines Key Definitions for Tax & Beneficial Ownership Purposes
Last month, the Court of Justice of the European Union (CJEU) issued a series of important judgments dealing with tax avoidance and beneficial ownership in the context of the EU Parent-Subsidiary Directive (PSD) and the Interest and Royalties Directive (IRD).