What is the tax rate in Cayman Islands?
Finding out about the tax rate in Cayman Islands is absolutely essential if you’re considering working in the country. The tax system in Cayman Islands can be broken down into company tax, income tax, payroll tax and sales tax, and learning about these various components gives you a good idea of how much you’ll be paying during your stay. Caymanian taxes are generally variable, so the values included here are just averages. If you want to keep more of your earnings, you should consider using a contractor management company for your income tax in Cayman Islands.
Corporate Tax Rate in Cayman Islands
Corporate tax or company tax in Cayman Islands is the amount taken from the earnings of corporations. If you own a corporation in Cayman Islands, you can expect to pay a fixed percentage (we don't have exact figures available currently) from your earnings. The specific rate you receive is dependent on a number of factors, such as the amount your company makes per annum.
Income Tax Rate in Cayman Islands
Income tax in Cayman Islands is charged to individuals, and depending on the company you’re working for you might have to calculate and submit returns yourself. Anybody freelancing or contracting in Cayman Islands will probably have to handle their taxes this way. Because individual earnings can be so different, the income tax rates in Cayman Islands vary according to your level of income. Unfortunately we don't have up to date income tax rates available at the time of writing.
Payroll Tax Rate in Cayman Islands
Payroll tax in Cayman Islands is very similar to income tax but it’s paid by your employer as you earn. Social security fees, public health insurance and other deductions are all included in this payment and other deductions in Cayman Islands are dependent on your income.
Sales Tax in Cayman Islands
Sales tax in Cayman Islands is applied to products you purchase using your already-taxed income. The rate of VAT in Cayman Islands (value-added tax) is not available at the time of writing this article but we will update this information soon. Sales Tax usually has several brackets depending on the type of product being purchased. There is nothing you can do about sales tax, but it’s good to know how much is added on to the cost of purchases.
How to Get the Best Tax Rates in Cayman Islands
The amount you pay for tax in Cayman Islands is heavily dependent on your income, but there are still many courses of action you can take if you have a good understanding of the system. Hiring an accountant in Cayman Islands will get you a better rate, but can be pretty expensive in itself. Using a contractor management company is one of the easiest ways to keep more of your earnings. Contractors can use the company as their “permanent” employer but still continue taking contracts freely. The company collect your payments, handle your taxes and then send you the remainder. They’re experts in Cayman Islands taxation, so they guarantee that you take home the biggest proportion of your earnings.
How We Help With Cayman Islands Taxation
We’re partners with numerous contractor management companies in Cayman Islands, and we know which ones specialise in the tax system in Cayman Islands. If you have any questions, we’ll check with the experts to ensure you receive the best advice. We also regularly help contractors like oil and gas workers, business analysts, IT project managers, telecommunications workers, testers and software developers keep more of their earnings by using a contractor management company. We’ll suggest the best options to you, and can help you determine the best course of action. Our advice is completely free, and you’re under no obligation, so get in touch with us today!