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Economy and Banking Sector of the Cayman Islands

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in the Cayman Islands: 0.0 - 0.0%

Withholding tax rates applied on payments of interest and dividends in Cayman Islands are shown in Table 1.

Dividends Interest
Natural Persons (residents) 0.0 %0.0 %
Natural Persons (non-residents) 0.0 %0.0 %
Table 1. Withholding tax rates in Cayman Islands.

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of the Cayman Islands: 1 Signed Agreements

Cayman Islands signed DTAs which already came info force with the following jurisdictions:

GB United Kingdom

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 35 Signed Agreements

Cayman Islands signed TIEAs which already came info force with the following jurisdictions :

AR Argentina
AW Aruba
AU Australia
CA Canada
CN China
CZ Czech Republic
DK Denmark
FO Faroe Islands
FI Finland
FR France
DE Germany
GL Greenland
GG Guernsey
IS Iceland
IN India
IE Ireland
JP Japan
MX Mexico
NL Netherlands
NZ New Zealand
NO Norway
PT Portugal
ZA South Africa
SE Sweden
US United States

There are also several agreements between Cayman Islands and other jurisdictions which was signed but haven't yet come into force:

BE Belgium
BR Brazil
CW Curacao
IT Italy
MT Malta
PL Poland
QA Qatar
SC Seychelles
SX Sint Maarten (Dutch part)
US United States

Automatic Exchange: Starts in September 2017

Cayman Islands signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Automatic Excnange: 49 Bilateral Agreements to Receive Information

the Cayman Islands has signed bilateral agreements with 49 jurisdictions to automatically receive information:

AR Argentina
AU Australia
AT Austria
BE Belgium
BR Brazil
BG Bulgaria
CA Canada
CN China
CO Colombia
HR Croatia
CZ Czech Republic
DK Denmark
EE Estonia
FO Faroe Islands
FI Finland
FR France
DE Germany
GR Greece
GL Greenland
HU Hungary
IS Iceland
IN India
IE Ireland
IT Italy
JP Japan
KR Korea, Republic of
LV Latvia
LI Liechtenstein
LT Lithuania
LU Luxembourg
MY Malaysia
MT Malta
MU Mauritius
MX Mexico
MC Monaco
NL Netherlands
NZ New Zealand
NO Norway
PL Poland
PT Portugal
SM San Marino
SC Seychelles
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
SE Sweden
GB United Kingdom
UY Uruguay

Automatic Excnange: 0 Bilateral Agreements to Send Information

the Cayman Islands has not singed any bilateral agreements to automatically send information.

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in the Cayman Islands
IGA in effect since 29 November 2013, Model 1

Cayman Islands has FATCA agreement with the U.S. in effect since 29 November 2013 (Intergovernmental Agreement Model 1). Financial institutions operating in Cayman Islands are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is non-reciprocal: the Cayman Island's financial accounts hold in U.S. financial institutions will not be reported to the Cayman Island's authorities.

Further Information