Cayman Islands to Increase Fees and Taxes

October 8, 2009 Offshore TaxationTax HavensTaxation in Cayman Islands  No comments

The Cayman Islands government has tabled a new budget which proposes to raise taxes and fees for the nation, though this has ensured the approval of the British government in attaining the loans necessary for the ailing jurisdiction.

In the face of a KYD40.8 million fall in revenues and a KYD56.2 million escalations in expenditure, the Cayman Islands government had sought assistance in the form of loans. Permission to increase the British jurisdiction’s debt balance was denied by the British government. It was requested that the Cayman Islands increase their tax base or levels to ensure that it does not post a budget deficit in the following fiscal year. With the new budget, permission has been given for the Cayman Islands to pursue and accept rescue loans.

It is estimated by the Cayman Islands government that the new revenue measures will garner KYD94.9 million in the 2009/10 fiscal year and KYD126.4 when they have been in effect for a full twelve months. The most prominent changes implemented include raising annual company fees for resident, non-resident, exempt and foreign companies by KYD150 – KYD500. Even with a subsequent reduction in companies, the government still estimates that an additional KYD17.0 million will be collected. License fees for Mutual Funds are set to increase by KYD500, garnering KYD4.4 million. The full list of changes and their revenue estimates can be found at the Cayman Islands government website.

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