Archive for September, 2012

Cayman Hikes Work Permit Fees

Thursday, September 20th, 2012

The government of the Cayman Islands has confirmed that following a revision to the Cayman Island budget, higher work permit fees entered into force on September 13, 2012.

The changes that are part of the revised budget are contained in the Immigration (Amendment) (No. 2) Regulations, 2012. Increases to work permit fees were agreed as a more favourable alternative, during talks between the local financial services industry and the government. Under the changes, work permit fees for executive persons engaged in financial services businesses in Grand Cayman rise from KYD 20 500 (USD 25 000) to KYD 30 375. Work permit fees for key non-executive roles, such as directors of marketing/trading, financial controllers etc. have increased to KYD 20 925 from KYD 15 500. Work permits for highly-skilled financial services roles will generally now range from KYD 13 650 to KYD 20 925, affecting roles such as trust officers, senior business analysts/senior financial analysts, trust/fund administrators, and auditor/audit officers, among numerous others.

Cayman approves revised Budget

Monday, September 3rd, 2012

The government of the UK has endorsed the revised Cayman budget for 2012-2013. However, it has restricted the size of a second overdraft facility to limit Cayman borrowing.

The latest budget is the result of a second revision of budget proposals from the government of the Cayman Islands, which was instructed to rewrite its initial budget plans earlier this year after the territory was blocked by the UK government from increasing borrowing to service the Cayman Islands’ recurring budget deficits. A second draft of the budget was drawn up in the beginning of August 2012. However, this draft was abandoned after an outcry from the Cayman financial industry regarding a proposal to introduce a direct tax on expatriate workers’ income.

The third budget has been approved by the UK government. The fiscal adjustment contained within the latest draft is less ambitious. It contains no direct tax proposals envisaging a USD 25 million shortfall during the 1st few months of 2013.

However, in agreeing the revised budget the government of the United Kingdom has said that it would grant a second overdraft facility of just USD 15 million, USD 10 million less than requested.

The overdraft facilities with a combined value of USD 81 million are being provided in recognition of the cyclical nature of Cayman revenues from the financial services industry. The Cayman Islands will be required to establish a “Budget Delivery Board” with a view to ensure achieving a budgetary surplus, as well as the repayment of the two credit facilities to the UK government by January 31, 2013, and June 30, 2013.