OpenAccountants/Cayman Islands/Cayman Islands Corporate Income Tax

Cayman Islands Corporate Income Tax

Name: OpenAccountants MCP Server
Author: OpenAccountants

Source-cited draft: corporate income tax for Cayman Islands (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Applicable period 2025Source-cited draft· Last updated Jun 25, 2026

Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.

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Key figures — Cayman Islands, 2025

Every figure is drawn from this Tax Guide and cited to its source.

Corporate income tax rate

0%PwC Worldwide Tax Summaries — Cayman Islands (Corporate — Taxes on corporate income)View source ↗

Special / reduced corporate rates

Not applicablePwC Worldwide Tax Summaries — Cayman Islands (Corporate)View source ↗

Corporate tax base

Not applicablePwC Worldwide Tax Summaries — Cayman Islands (Corporate)View source ↗

Withholding tax on dividends

0%PwC Worldwide Tax Summaries — Cayman Islands (Corporate — Withholding taxes)View source ↗

Withholding tax on interest

0%PwC Worldwide Tax Summaries — Cayman Islands (Corporate — Withholding taxes)View source ↗

Withholding tax on royalties

0%PwC Worldwide Tax Summaries — Cayman Islands (Corporate — Withholding taxes)View source ↗

Corporate income tax return / payment

NonePwC Worldwide Tax Summaries — Cayman Islands (Corporate — Tax administration)View source ↗

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)View source ↗

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 DITCInternational Tax Co-operation (Economic Substance) Act (Cayman Islands)View source ↗

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)View source ↗

Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.

The full Guide

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))

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Corporate taxation in the Cayman Islands

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))