Cayman Finance has acknowledged the positive impact of the Organisation for Economic Co-operation and Development (OECD) concluding that the Cayman Islands’ tax neutral regime is not harmful and meets all economic substance requirements.
The conclusion followed a review of the Cayman Islands’ domestic legal framework that includes economic substance legislation.
The review was conducted by the OECD Forum on Harmful Tax Practices (FHTP) in June 2019. Cayman was one of 11 jurisdictions assessed during this round of reviews.
As part of the Inclusive Framework, the FHTP will annually review changes in the legal framework, as well as the implementation of safeguards and enforcement measures in practice.
“As a premier global financial hub, it is important that international standard setting bodies, like the OECD, have reviewed Cayman’s legal framework and independently reaffirmed that we meet all of the relevant international requirements and that Cayman’s tax neutral regime does not pose harm to other countries’ tax bases,” said Cayman Finance CEO Jude Scott.
“We continue to support the work of the Cayman Islands Government that ensures the Cayman Islands meets all relevant international standards implemented by the OECD,” he added.
Organisation for Economic Co-operation and Development (OECD), Tax neutral regime, Jude Scott, Cayman Islands