Cayman Islands

The Cayman Islands is a British Overseas Territory located in the western Caribbean Sea. Known for its stunning beaches, vibrant marine life, and tax-neutral status, it is a prominent financial hub and a popular tourist destination.

The Cayman Islands comprises three islands: Grand Cayman, Cayman Brac, and Little Cayman. Grand Cayman is the largest and most populous island, hosting the capital, George Town. The islands are renowned for their pristine beaches, such as Seven Mile Beach, and world-class diving spots, including the famous Stingray City.

The economy of the Cayman Islands is primarily driven by financial services and tourism. The islands have a well-developed financial sector, hosting numerous banks, hedge funds, and insurance companies. The tourism industry benefits from the islands' natural beauty, attracting visitors for its water sports, luxury resorts, and vibrant nightlife.

The Cayman Islands has a high standard of living, supported by a robust infrastructure, modern healthcare, and a comprehensive education system. The local culture is a blend of British and Caribbean influences, reflected in the islands' festivals, cuisine, and traditions.

General Information

• Official Name: The Cayman Islands
• Capital: George Town
• Population: Approximately 71,432 (World Bank, 2022)
• Area: 264 Sq. Km (102 Sq. Miles)
• Major Languages: English
• Major Religions: Christianity
• Monetary Unit: Cayman Islands Dollar (KYD)
• GNI Per Capita: $68,200 (World Bank, 2022)
• Main Exports: Financial services, tourism
• Internet Domain: .ky
• International Dialling Code: +1-345

How to Say

• Hello: Hello
• Good Morning: Good Morning
• Good Evening: Good Evening
• Do You Speak English?: Do you speak English?
• Good Bye: Goodbye
• Thank You: Thank you
• See You Soon!: See you soon!

Dates and Numbers

In the Cayman Islands, dates and numbers follow specific formats that align with British standards, reflecting its status as a British Overseas Territory.

Dates are typically written in the day, month, and year sequence. This can be presented in two common ways:

• Full Date Format: 12 July 2024
• Numeric Date Format: 12/07/2024

Numbers in the Cayman Islands use commas to separate thousands and periods to indicate decimals. Here are examples of how numbers are formatted:

• Thousands: 1,000 or 10,000
• Decimals: 10.5 or 1,234.56

The monetary unit in the Cayman Islands is the Cayman Islands Dollar (KYD), which is often symbolized as CI$. Here are how currency values are typically written:

• Small amounts: CI$10.50
• Large amounts: CI$1,234.56

The Cayman Islands, renowned for its picturesque beaches and vibrant marine life, is also a premier destination for businesses seeking a tax-neutral environment. Known for its financial services sector, the jurisdiction offers no direct taxes such as corporate income tax or capital gains tax, making it highly attractive for multinational corporations and high-net-worth individuals. The legal system, based on English common law, provides a reliable foundation for business operations. Key business structures include exempted companies, limited liability companies, and partnerships, each with specific benefits and regulatory requirements. The economy is bolstered by sectors like financial services, tourism, and real estate, providing a stable and dynamic business environment​.

Setting up a business in the Cayman Islands is streamlined with modern infrastructure, including excellent transportation links, high-speed internet, and a range of commercial real estate options. Non-Caymanian employees can obtain work permits, ensuring access to a diverse and skilled workforce. Employment laws mandate health insurance and pension contributions, safeguarding employee welfare. The Cayman Islands' regulatory compliance, overseen by bodies like the Cayman Islands Monetary Authority (CIMA) and the Department of Commerce and Investment (DCI), ensures adherence to international standards, making it a secure and attractive location for business expansion​.

The Cayman Islands is renowned for its economic stability and dynamic growth, making it an ideal destination for investors. Key sectors such as financial services, tourism, and real estate drive the economy, each offering robust investment opportunities. The jurisdiction's legal and regulatory framework, based on English common law, provides a secure environment for investors. This strong legal foundation, combined with political stability, ensures a predictable economic landscape.

A significant draw for investors is the Cayman Islands' tax-neutral status. The absence of corporate income tax, personal income tax, and capital gains tax allows investors to maximise returns, making it attractive for multinational corporations and high-net-worth individuals. Government revenue is primarily generated through indirect taxes like import duties and licensing fees, further enhancing its appeal as an investment destination.

The well-developed regulatory framework, overseen by the Cayman Islands Monetary Authority (CIMA) and the Department of Commerce and Investment (DCI), ensures compliance with international standards. This includes stringent anti-money laundering (AML) laws and high corporate governance standards, maintaining the Cayman Islands as a secure business location.

To attract foreign investment, the Cayman Islands offers incentives such as special economic zones like Cayman Enterprise City (CEC). These zones provide reduced bureaucracy, enhanced immigration options, and tax exemptions, particularly for technology, media, and biotechnology businesses. These initiatives diversify the economy and create new opportunities, solidifying the Cayman Islands' status as a premier business hub.

The Cayman Islands is a prime destination for foreign direct investment (FDI) due to its stable economic environment, favourable tax policies, and robust legal framework. FDI is a critical component of the Cayman Islands' economic strategy, attracting multinational corporations, financial institutions, and high-net-worth individuals. The Cayman Islands offers a politically stable environment with a strong legal system based on English common law, providing a secure and predictable setting for foreign investors. The absence of direct taxes such as corporate income tax, personal income tax, and capital gains tax is a significant draw for foreign investors. This tax-neutral environment maximises returns on investments.

FDI Opportunities

The Cayman Islands offers attractive FDI opportunities due to its stable economy, tax benefits, and strong legal framework.

• Financial Services: Opportunities in banking, captive insurance, and hedge fund management.
• Real Estate: Investments in commercial and residential properties, and tourism infrastructure.
• Technology: The Cayman Enterprise City (CEC) offers tax exemptions and streamlined processes for tech, media, and biotech firms.
• Healthcare: Developing medical tourism facilities and health services.
• Infrastructure: Enhancing transport, logistics, and telecom infrastructure.
• Sustainability: Renewable energy and eco-friendly projects.

Government Incentives

The Cayman Islands government actively encourages FDI through various incentives designed to attract and retain foreign businesses. These incentives aim to create a business-friendly environment and foster economic diversification.

• Special Economic Zones (SEZs): The most notable initiative is the Cayman Enterprise City (CEC), a special economic zone offering numerous benefits:
• Reduced Bureaucracy: Streamlined processes for business setup and operations.
• Tax Exemptions: No direct taxes, import duties, or work permit fees within the zone.
• Enhanced Immigration Options: Easier and faster immigration procedures for employees and their families​.
• Trade and Business Licensing: The Department of Commerce and Investment (DCI) provides support for obtaining necessary trade and business licenses, ensuring that businesses can operate legally and efficiently. This includes guidance on compliance with local laws and regulations​.
• Investment Promotion: The government, through various agencies, actively promotes investment opportunities in the Cayman Islands. This includes providing detailed information, facilitating connections between foreign investors and local businesses, and offering support throughout the investment process.
• Infrastructure Development: Continuous improvements in infrastructure, including transportation, telecommunications, and utilities, make the Cayman Islands an even more attractive destination for foreign investors. These developments ensure that businesses have access to world-class facilities and services​.

Establishing a business in the Cayman Islands often necessitates setting up a local bank account to comply with financial regulations and facilitate efficient financial management.

While it is not required by law for all businesses to have a local bank account, having one is strongly recommended to ensure smooth operational and financial transactions. Specific scenarios, such as managing payroll for employees within the Cayman Islands, effectively necessitate a local account due to practical and compliance reasons.

Bank Opening Hours

Most banks in the Cayman Islands operate from Monday to Friday, with typical opening hours as follows:

• Monday to Thursday: 9:00 AM to 4:00 PM
• Friday: 9:00 AM to 4:30 PM

The Cayman Islands is a premier destination for businesses seeking a favourable environment for international operations. Known for its tax-neutral status, political stability, and robust legal framework, the Cayman Islands provides various options for establishing business entities.

Types of Business Entities

An exempted company is ideal for businesses conducting international operations without engaging in local business. This type of entity is exempt from local taxes, has minimal reporting requirements, and imposes no restrictions on foreign ownership.

• A non-resident company is suitable for foreign businesses that do not intend to trade locally. These companies enjoy no local taxation but must maintain a registered office in the Cayman Islands.
• A limited liability company (LLC) combines the benefits of a partnership and a corporation, making it suitable for various business purposes. Members' liability is limited to their investment, and it features a flexible management structure.
• A segregated portfolio company (SPC) is ideal for investment funds and insurance companies, allowing the creation of segregated portfolios to protect assets and liabilities within each portfolio.
• Partnerships come in various forms. A general partnership involves partners with unlimited liability. A limited partnership has at least one partner with unlimited liability, while others have liability limited to their investment. An exempted limited partnership is similar to a limited partnership but designed for offshore investors.

Registration Process

• Before registering, the proposed company name must be reserved through the Registrar of Companies.
• Prepare the Memorandum and Articles of Association, which outline the company's structure and operating procedures.
• Complete the relevant forms provided by the Registrar of Companies and pay the applicable registration fees based on the type of entity.
• Submit the completed forms, along with the Memorandum and Articles of Association, to the Registrar of Companies.
• This can be done online through the Cayman Business Portal. Once the Registrar approves the application, a Certificate of Incorporation will be issued, officially recognising the entity.

Every company must have a registered office in the Cayman Islands and submit annual returns and pay annual fees to maintain good standing.

Additional Considerations

Depending on the nature of the business, a Trade and Business Licence from the Department of Commerce and Investment (DCI) may be required.

For businesses employing foreign nationals, securing work permits through the Cayman Islands Immigration Department is essential.

Establishing an entity in the Cayman Islands is a straightforward process supported by a robust legal framework and favourable economic conditions. The variety of business structures available allows flexibility to meet diverse business needs.

The Cayman Islands requires that foreign nationals obtain the appropriate visas and work permits to live and work in the territory. Here’s an overview of the types of visas and work permits available, along with the process for obtaining them.

Types of Visas

Visitor Visa: Visitor visas are for tourists and short-term visitors, typically valid for up to 30 days but extendable for up to six months. Applications can be made through the Cayman Islands Department of Immigration or at a Cayman Islands consulate abroad, requiring proof of return or onward travel and sufficient funds for the stay.

Business Visitor Visa: These visas are for individuals visiting for business purposes, such as meetings or conferences, and are usually valid for up to 10 days. Applications are made through the Department of Immigration, requiring details of the business purpose and proof of return travel.

Types of Work Permits

Temporary Work Permit (TWP): Temporary Work Permits are for short-term employment and are valid for up to six months. Employers must apply to the Cayman Islands Department of Immigration on behalf of the employee, submitting a completed application form, proof of job offer, and the employer’s business license.

Annual Work Permit: Annual Work Permits are for longer-term employment, valid for one year and renewable annually. Employers must submit a comprehensive application to the Department of Immigration, including job offer details, proof of qualifications, and evidence of efforts to recruit locally.

Special Economic Zone (SEZ) Work Permit: These permits are for employment within the Cayman Enterprise City (CEC) and are valid for one year and renewable. Employers in the SEZ must apply through the CEC Authority, providing similar documentation as for the annual work permit.

Application Process for Work Permits

To secure a work permit, the process begins with securing a job offer from a Cayman Islands employer. The employer then submits the work permit application to the Department of Immigration. This application must include a completed form, proof of business license, job offer letter, employee’s qualifications and experience, and evidence of local recruitment efforts for annual work permits. The employee must provide passport copies, a police clearance certificate, and a medical examination report. The employer is responsible for paying the applicable work permit fees, which vary based on the job category and permit duration. The Department of Immigration reviews the application, and upon approval, the work permit is issued, allowing the employee to begin working in the Cayman Islands.

Work permit holders can apply for dependent permits for their spouse and children, allowing them to live in the Cayman Islands. Work permits can be renewed annually, requiring updated documentation and proof of continued employment. Employers and employees must comply with all local labour laws and immigration regulations to maintain the validity of the work permit.

The Cayman Islands is renowned for its tax-neutral environment, making it an attractive destination for businesses and individuals seeking to maximize their financial efficiency. The jurisdiction does not impose direct taxes, such as income tax, corporate tax, capital gains tax, or inheritance tax. Instead, the government generates revenue primarily through indirect taxes and fees.

Financial Year

The financial year in the Cayman Islands runs from 1 January to 31 December. This annual cycle is used for accounting and financial reporting by businesses and government agencies.

Tax Bodies

There are several key bodies and agencies involved in the regulation and administration of tax-related matters in the Cayman Islands:

• Cayman Islands Government: The overall administration and oversight of tax policies and revenue collection are managed by various departments within the Cayman Islands Government. Their website provides comprehensive information and updates on tax regulations and fees. For more information, visit the Cayman Islands Government website.
• Department of Commerce and Investment (DCI): The DCI plays a crucial role in supporting businesses and ensuring compliance with licensing and operational fees. It also provides information and resources related to business establishment and investment incentives. For more information, visit the DCI website.
• Cayman Islands Monetary Authority (CIMA): While primarily focused on the financial services sector, CIMA ensures that financial institutions adhere to local and international regulations, including anti-money laundering (AML) and counter-financing of terrorism (CFT) laws, which indirectly influence the broader tax environment. For more information, visit the CIMA website.

Key Points of the Cayman Islands Tax System:

• No Direct Taxes: The Cayman Islands does not levy personal income tax, corporate income tax, capital gains tax, or inheritance tax.
• Indirect Taxes and Fees: Revenue is mainly generated through import duties, stamp duties on property transactions, tourism-related taxes (such as hotel occupancy tax), and various licensing fees for businesses.
• Economic Zones: Special economic zones, such as the Cayman Enterprise City (CEC), offer further tax advantages, including exemptions from work permit fees and import duties for businesses operating within these zones.
• Compliance: Businesses must comply with local regulations, including obtaining necessary licenses and adhering to financial reporting standards. This compliance ensures that indirect tax revenues are accurately reported and collected.
• Anti-Money Laundering: Strict AML and CFT regulations are enforced to maintain the integrity of the financial system, contributing to the overall regulatory environment in the Cayman Islands.

The Cayman Islands is renowned for its tax-neutral environment, which includes a complete absence of personal income tax. This policy makes it an attractive destination for both individuals and businesses. 

Key Features of Income Tax Policy

• No Personal Income Tax: There is no personal income tax levied on residents or non-residents in the Cayman Islands. This means individuals are not required to pay tax on their salaries, wages, or other forms of personal income.
• No Corporate Income Tax: There is no corporate income tax for businesses operating in the Cayman Islands. This includes both local and international companies.
• No Capital Gains Tax: The Cayman Islands does not impose any taxes on capital gains. This policy applies to individuals and businesses alike.
• No Inheritance Tax: There are no inheritance taxes in the Cayman Islands, which means that assets can be passed on without incurring tax liabilities.
• No Wealth Tax: There are no taxes on wealth or net worth in the Cayman Islands.

In the Cayman Islands, the social security system is relatively straightforward compared to other jurisdictions. There are no traditional social security taxes imposed on income. However, there are mandatory pension contributions and health insurance requirements that employers and employees must adhere to.

Social Security Contributions

Pension contributions

All employees between 18 and 65 years of age must contribute to a pension plan; Unless the employer agrees to contribute more than the employer’s minimum requirement of 5 per cent, all employees must contribute a minimum of 5 per cent of their earnings up to the year’s maximum pensionable earnings of CI$87,000. Employers are responsible for enrolling their employees in a registered pension plan within nine months of employment commencement.

Health Insurance

Under the Health Insurance Law, all employers must provide health insurance for their employees. Employers are required to cover at least 50% of the insurance premium, with employees covering the remaining cost. Health insurance coverage must meet or exceed the minimum standards set by the Health Insurance Commission.

The following table summarises the mandatory social security contributions for both employers and employees in the Cayman Islands.

Type	Employer Contribution	Employee Contribution	Total Contribution
Pension*	5%	5%	10%
Health Insurance	At least 50% of the premium	Remainder of the premium	100% (Shared)

*Contribution basis (cap): Up to the annual maximum pensionable earnings of $87000.0

Business Tax

The Cayman Islands is known for its tax-neutral environment, meaning it does not impose direct taxes such as corporate tax, income tax, or capital gains tax. Instead, the government generates revenue through various indirect taxes and fees.

Key features of the business Tax environment in the Cayman Islands

• No Corporate Tax: Businesses in the Cayman Islands do not pay corporate income tax, which significantly reduces their tax burden.
• No Personal Income Tax: Individuals, including business owners, do not pay personal income tax on earnings.
• Import Duties: Import duties are a primary source of government revenue. The rates vary depending on the type of goods being imported, ranging from 0% to 22%.
• Stamp Duty: Stamp duty is applicable to property transactions. The standard rate is 7.5% on property transfers, although there are exemptions and reduced rates under specific conditions.
• Business Licenses: All businesses must obtain a trade and business license from the Department of Commerce and Investment (DCI). Fees for licenses vary based on the type and size of the business.
• Special Economic Zones: The Cayman Enterprise City (CEC) offers additional tax benefits for businesses operating within the zone, including exemptions from import duties and work permit fees.

There are no specific expatriate taxes imposed on businesses in the Cayman Islands.

personal income tax, and capital gains tax simplifies the tax reporting obligations for businesses. However, businesses are still required to adhere to specific regulatory and reporting requirements, particularly regarding indirect taxes and compliance with local laws.

Annual Return

• All registered companies must file an annual return with the Registrar of Companies.
• This return includes basic information about the company, such as its registered office, directors, and share capital.
• The annual return must be filed by January 31st of each year.
• Alongside the annual return, businesses must pay an annual fee to maintain their good standing. The amount varies depending on the type of business entity and its share capital.
• January 31: Deadline for filing the annual return and paying the annual fee.

Economic Substance Reporting

• Certain businesses must comply with the Economic Substance Law, which requires entities engaged in specific relevant activities (e.g., banking, insurance, fund management) to demonstrate substantial economic activity in the Cayman Islands.
• These entities must file an annual Economic Substance Report with the Cayman Islands Tax Information Authority.
• Economic Substance Reports and Beneficial Ownership updates must be filed annually, with specific deadlines depending on the entity’s fiscal year.

Foreign Account Tax Compliance Act (FATCA):

U.S. citizens and residents with financial accounts in the Cayman Islands must report these under FATCA. The compliance is primarily handled by the financial institutions, but individuals must ensure they meet U.S. tax reporting requirements.

When hiring new employees, businesses in the Cayman Islands must follow specific procedures to ensure compliance with local laws and regulations.

• Work Permits: For expatriates, businesses must obtain a work permit before the employee can start work.
• Employment Contract: Provide a written employment contract that outlines the terms and conditions of employment, including job duties, salary, benefits, working hours, and leave entitlements. The contract must comply with the Labour Law of the Cayman Islands.
• Pension Enrolment: Enrol the new employee in a registered pension plan within nine months of employment commencement.
• Health Insurance: Provide health insurance coverage that meets or exceeds the minimum standards set by the Health Insurance Commission.

When an employees leaves, businesses in the Cayman Islands must follow specific procedures to ensure compliance with local laws and regulations.

• Notice of Termination: Provide a written notice of termination according to the terms specified in the employment contract or as per the Labour Law.
• Final Salary and Benefits: Calculate and pay any outstanding salary, including payment for unused leave, overtime, and any other owed benefits. Ensure that the final paycheck is provided promptly, typically within a specified period after the termination date.
• Pension and Health Insurance: Notify the pension plan provider about the employee's termination. The pension contributions cease as of the termination date. Ensure that the employee's health insurance coverage is appropriately adjusted or terminated as per the policy terms and local regulations.

In the Cayman Islands, businesses must adhere to specific regulations and requirements to manage payroll effectively and ensure compliance with local laws. Here are the steps and considerations for payroll registration and management:

• Business licencing
• Pension Plan registration
• Health Insurance registration
• Work Permit and Immigration compliance.

Reporting and payroll records

• General Payroll Records: Businesses must keep payroll records for a minimum of five years. This includes all documentation related to employee wages, hours worked, deductions, pension contributions, and health insurance payments.
• Pension Records: Records pertaining to pension contributions and employee enrolments should also be kept for at least five years. This ensures compliance with the National Pensions Law and provides a clear audit trail.
• Health Insurance Records: Similar to payroll and pension records, health insurance records must be maintained for a minimum of five years. These records verify that employers have met their obligations under the Health Insurance Law.

Payslip requirements

In the Cayman Islands, there is no specific legal requirement mandating that payslips must be provided digitally, but employers are required to provide employees with detailed payslips to ensure transparency and compliance with local labour laws. A payslip must include specific information including:

• Employee Information: Full name of the employee, Employee identification number or payroll number (if applicable), Job title or position
• Employer Information: Name and address of the employer, Employer, identification number (if applicable)
• Payroll Period: Start and end date of the payroll period, Date of payment
• Earnings: Gross salary or wages for the period, Breakdown of earnings (regular pay, overtime, bonuses, commissions, etc.), Hourly rate and number of hours worked (if applicable)
• Deductions: Itemised list of deductions (taxes, pension contributions, health insurance premiums, etc.), Total amount of deductions
• Net Pay: Net amount payable to the employee after all deductions
• Additional Information: Year-to-date totals for earnings and deductions, Any other relevant information as required by local labour laws or company policy

Holiday Accrual and Calculations in The Cayman Islands

In the Cayman Islands, holiday accruals and calculations are governed by the Labour Law (2011 Revision).

Employees are entitled to a minimum of two weeks of paid annual leave after completing one year of continuous employment. This equates to 10 working days per year. If an employee has been employed for less than a year, the leave is calculated on a pro-rata basis.

The pay rate for holiday leave is equivalent to the employee's normal wages, which means they receive the same pay as they would for regular working days. Employers must ensure that holiday pay is provided at the same time as the normal pay period. Additionally, public holidays do not count as part of the annual leave entitlement, and if a public holiday falls within an employee's vacation, they are entitled to an additional day off. 

Employment Contracts The Cayman Islands

In the Cayman Islands, employment contracts are essential for outlining the terms and conditions of employment. These contracts must comply with local labour laws and include details such as job duties, salary, benefits, working hours, and leave entitlements. Additionally, they must specify the conditions under which the employment can be terminated.

Maternity Leave The Cayman Islands

Female employees in the Cayman Islands are entitled to 12 weeks of maternity leave, which can be taken from up to two weeks before the expected due date.

This entitlement is available to all female employees, regardless of their length of service.

Employers are responsible for paying maternity leave and are required to provide 20 working days of leave on full pay, 20 working days on half pay, and 20 working days without pay.

Employers must submit the necessary documentation to the Department of Labour and Pensions.

Paternity Leave and Parental Leave The Cayman Islands

Currently, the Labour Law in the Cayman Islands does not mandate specific paternity or parental leave. However, some employers may choose to offer paternity leave as part of their company policy.

The eligibility and pay for such leave are determined by the individual employer's policies.

Sick Leave The Cayman Islands

Employees in the Cayman Islands are entitled to a minimum of 10 working days of paid sick leave per year after completing one year of continuous employment.

Sick leave is paid at the employee’s regular rate of pay.

Termination and Severance The Cayman Islands

When it comes to termination, employees are entitled to notice periods based on their length of service. Severance pay is required if the employee has completed one year of continuous employment, calculated at one week’s salary per completed year of service.

National Service The Cayman Islands

The Cayman Islands does not have mandatory national service

The national minimum wage in the Cayman Islands is set at CI$6.00 per hour for most employees. For service employees working under a registered gratuity scheme, the minimum wage is CI$4.50 per hour.

The standard working week in the Cayman Islands is set at 45 hours, typically spread over five days, which is normally a nine-hour workday. Employers may set these hours according to their operational needs, but the typical arrangement is from Monday to Friday, 9:00 AM to 5:00 PM, with some flexibility depending on the industry​.

While the Cayman Islands Labour Law does not mandate specific break periods during the workday, it requires a minimum rest period of eight consecutive hours between shifts. Many employers provide unpaid breaks based on company policies or industry standards to ensure employee well-being.

Overtime Regulations

Employees are eligible for overtime pay when their work hours exceed the standard 45-hour workweek or the nine-hour workday. Overtime is compensated at a rate of 1.5 times the employee's regular hourly wage. There is no legal maximum for overtime hours, but employers are encouraged to manage overtime to prevent employee fatigue and burnout​.

There are no specific legal regulations for night shifts or weekend work in the Cayman Islands. Standard overtime rules apply if night or weekend work exceeds the regular work hours. Employers often offer premium pay for night shifts or weekend work as an incentive.

Public holidays in the Cayman Islands reflect a mix of cultural, religious, and historical observances. Public offices, schools, and many businesses typically close on these days to allow residents to celebrate and observe these important dates.

Below are the statutory national holidays in the Cayman Islands for 2024, including the date, weekday, and name of each holiday:

Date	Weekday	Name of Holiday
01 January	Monday	New Year's Day
22 January	Monday	National Heroes Day
14 February	Wednesday	Ash Wednesday
29 March	Friday	Good Friday
01 April	Monday	Easter Monday
20 May	Monday	Discovery Day
17 June	Monday	Queen's Birthday
01 July	Monday	Constitution Day
11 November	Monday	Remembrance Day
25 December	Wednesday	Christmas Day
26 December	Thursday	Boxing Day

 

In the Cayman Islands, employers often provide various benefits to attract and retain talent. These benefits go beyond the standard salary and include allowances for expenses, food, transport, and other perks. Here's an overview of common employee benefits:

• Food Allowance: Some employers provide a food allowance to cover the cost of meals during work hours. This can be offered as a direct payment or through meal vouchers.
• Transport Allowance: Transport allowances are often provided to cover commuting costs. This can include reimbursements for public transport or petrol expenses for those who drive to work. In some cases, employers may offer company cars or shuttle services to make commuting easier for their employees.
• Housing Allowance: For expatriate employees or those relocating for their job, a housing allowance may be provided to cover rental costs or to contribute towards mortgage payments.
• Relocation Assistance: Employers may offer relocation packages that cover moving expenses, temporary housing, and settling-in costs for employees who are moving to the Cayman Islands for work.
• Bonuses and Incentives: Performance-based bonuses and incentive programs are common in the Cayman Islands.

Expenses incurred by employees in the course of their duties are usually reimbursed by the employer. These expenses are calculated based on the company's policies and the specific requirements of the client's project.

Key Legislative Updates in the Cayman Islands for the Current and Upcoming Financial Years

Tax Updates

Anti-Money Laundering (AML) Regulations: The Cayman Islands has amended its Anti-Money Laundering Regulations (AMLRs) as of 19 April 2024. The changes clarify compliance requirements not only for AML but also for counter-terrorist and proliferation financing measures. The customer due diligence threshold for one-off transactions has been updated to CI$10,000, aligning with international standards. The amendments also include corrections of outdated references and enhancements in sanctions screening for higher risk areas.

Beneficial Ownership Transparency Act (BOT Act): The Beneficial Ownership Transparency Act, 2024 (BOT Act) has been approved and will be phased in from May 2024, with full implementation by the end of 2024. This act expands the scope to include all partnerships and entities previously exempt, such as those registered under the Securities Investment Business Act or Virtual Asset (Service Providers) Act. Entities must now maintain beneficial ownership registers, and the trigger threshold percentage for beneficial owners remains at 25% under the BOT Act and 10% under the AML Regulations.

Proceeds of Crime Act (POCA) Amendments: The Proceeds of Crime (Amendment) Act, 2023 came into effect on 31 January 2024, with certain provisions set to commence on 30 April 2024. These amendments refine offences related to concealing, arrangements, and the acquisition, use, and possession of criminal property. The Act also retains the Suspicious Activity Report (SAR) defence, provided the Financial Reporting Authority (FRA) gives consent.

Employment Law Updates

Amendments to Employment Legislation: Recent updates to employment legislation include more robust compliance requirements for employers. The Companies (Amendment) Act, 2024, enhances flexibility within the Companies Act, allowing actions such as the reduction of share capital without court approval and re-registration of companies. Additionally, it introduces provisions for voluntary liquidation under the supervision of the Grand Court.

Other Relevant Updates

Removal from FATF and EU AML Lists: The Cayman Islands has been removed from the Financial Action Task Force (FATF) grey list and the EU's list of high-risk third countries. This follows the successful implementation of recommended AML/CFT measures, demonstrating the jurisdiction's commitment to international compliance standards.

Please note that this document gives general guidance only and should not be regarded as an authoritative or complete statement of the law, regulations or tax position in any country. You should always seek specific advice for each specific situation. This document should not be relied upon as professional advice and activpayroll accepts no liability for reliance on its contents.