Corporate Income Tax in Cayman Islands

Corporate taxation in the Cayman Islands

The Cayman Islands imposes no corporate income tax, no capital gains tax, no withholding tax, and no branch profits tax. Companies instead pay annual government registration fees and, where in scope, must meet economic-substance and CRS/FATCA reporting obligations.

• Corporate income tax rate — 0% (no corporate income, capital gains, or other direct tax is imposed on corporations percent) (PwC Worldwide Tax Summaries — Cayman Islands (Corporate — Taxes on corporate income))
• Special / reduced corporate rates — Not applicable (there is no corporate tax and therefore no industry or size-based rate variations) (PwC Worldwide Tax Summaries — Cayman Islands (Corporate))
• Corporate tax base — Not applicable (no taxable income concept exists for corporations under Cayman law) (PwC Worldwide Tax Summaries — Cayman Islands (Corporate))
• Withholding tax on dividends — 0% (no withholding tax on dividends paid to residents or non-residents percent) (PwC Worldwide Tax Summaries — Cayman Islands (Corporate — Withholding taxes))
• Withholding tax on interest — 0% (no withholding tax on interest payments percent) (PwC Worldwide Tax Summaries — Cayman Islands (Corporate — Withholding taxes))
• Withholding tax on royalties — 0% (no withholding tax on royalty payments percent) (PwC Worldwide Tax Summaries — Cayman Islands (Corporate — Withholding taxes))
• Corporate income tax return / payment — None (no corporate income tax return is filed and no corporate income tax is paid) (PwC Worldwide Tax Summaries — Cayman Islands (Corporate — Tax administration))
• Tax exemption certificate (exempted company) — An exempted company may apply for an undertaking from the Government that no future tax on profits, income, gains, or appreciation will apply to it — typically guaranteed for up to 20 years (extendable to 30) ((approx years — confirm)) (Companies Act (2025 Revision) (Cayman Islands))
• Economic substance obligation — In-scope entities carrying on 'relevant activities' must satisfy the economic substance test and file an annual ES notification and return with the DITC (International Tax Co-operation (Economic Substance) Act (Cayman Islands))
• Annual government fee (in lieu of corporate tax) — Exempted company with registered capital up to CI$42,000 (US$50,000): CI$925 annual fee (effective 1 January 2025); higher capital bands pay more CI$ (Companies Act (2025 Revision) — Fees Regulations (Cayman Islands))