Cayman increases Fees and Taxes
On October 2, 2009, Cayman Islands’ Financial Secretary, Kenneth Jefferson tabled an austerity budget that was designed to tackle the significant challenges that are being faced by the offshore jurisdiction as a result of the financial crisis. Unfortunately, the crisis has not left the government much choice; therefore a multitude of taxes and fees will be increased.
Rising expenditure and lackluster revenues are facing a 5.7% contraction this year. So, Cayman has been forced to reevaluate its tax system in order to provide an additional KYD 126.4 million (USD 156 million) over the next 12 months. KYD 94.9 million (USD 117.2 million) out of this sum will be realized in the fiscal year 2009/2010.
The Cayman Islands has rejected the UK’s call to introduce direct taxes. The jurisdiction has instead decided to introduce broad increases in levies on international trade and transactions and domestic levies on goods and services, consisting mostly of increases in import duties, bank, trust and company licence fees and work permit fees.