Cayman Finance Submission OECD Consultation: Pillar One and Pillar Two Blueprints

The Cayman Islands is a tax neutral hub that supports global economic growth and recovery. This is achieved through efficiently connecting law-abiding users and providers of investment capital and financing around the world. The Cayman Islands financial services industry has been recognised for decades as a strong partner with other leading jurisdictions and industries in promoting transparency to combat corruption, money-laundering, terrorism financing and tax evasion. The Cayman Islands is a fully cooperating member of the Inclusive Framework.

Contribution of the Cayman Islands to global economic growth and welfare

➢ Tax neutral jurisdictions such as the Cayman Islands play a key enabling role in the efficient allocation of capital providing unparalleled access to global finance and liquidity leading to more trade, innovation, economic growth, employment, and government revenue in both developed and developing nations.

Cayman Islands economic and tax policy

➢ The Cayman Islands exercises a legitimate economic policy choice to apply a zero rate of tax on all corporations and meets its revenue needs through customs duties and fees.

International acceptance of zero tax rates

➢ A zero tax rate on corporations is recognised at both OECD and EU levels as not being harmful unless combined with harmful elements such as ring fencing, lack of transparency and the absence of adequate substantive activities.

The Cayman Islands transparent and neutral tax policy

➢ The Cayman Islands is fully transparent and recognised as compliant with internationally accepted standards of tax good governance, including economic substance regulations.

Relevance of tax treaties

➢ As a tax neutral jurisdiction, the Cayman Islands is not party to any double tax treaties that would result in the reduction of withholding taxes and does not therefore pose a risk to other countries in terms of eroding their tax base or preventing another country from asserting its taxing rights.
➢ The Cayman Islands has entered into a range of bilateral and multilateral information exchange arrangements that fulfil the “prevention of fiscal evasion” aspect of tax treaties.

Read more here: Cayman Finance Submission OECD Consultation: Pillar One and Pillar Two Blueprint

Related news