🇰🇾 Tax Overview — Cayman Islands
Corporate tax, VAT/GST, and key tax information for businesses operating in Cayman Islands.
Tax Treatment by Structure
Exempted Company (EC)
Cayman Exempted Companies pay no corporate tax, income tax, capital gains tax, or withholding tax. The government can issue a Tax Undertaking Certificate guaranteeing the company will remain tax-exempt for a period of 20–30 years. There is no VAT or sales tax. Government revenue comes from annual registration fees based on authorised share capital. Companies with authorised capital up to CI$50,000 pay approximately CI$854/year; higher capital amounts attract higher fees. CIMA-regulated entities (registered funds, licensed funds) pay additional regulatory fees. The Economic Substance Act applies to companies conducting relevant activities in Cayman — they must demonstrate adequate people, premises, and decision-making in the jurisdiction.
Cayman Islands Limited Liability Company (LLC)
Cayman LLCs enjoy the same 0% tax environment as Exempted Companies. No corporate tax, income tax, capital gains tax, or withholding tax applies. The LLC can obtain a Tax Undertaking Certificate from the government. For US tax purposes, a Cayman LLC can make a "check-the-box" election to be treated as a partnership (fiscally transparent) or as a corporation, depending on the desired tax treatment for US members. Annual government fees are comparable to those for Exempted Companies.
This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.