🇰🇾 Corporate Tax in Cayman Islands

Headline rate: 0%

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.

Key Facts

Double tax treaties: 0
Memberships: CARICOM (associate), OECD Global Forum, Caribbean Financial Action Task Force
Legal system: English common law
Fiscal year: January – December

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.