Cayman Tax, continued

In two royal decrees dated 23 August 2015, the Minister of Finance announced the legal entities that are deemed to be legal arrangements that must be reported in the tax payer’s tax return if he is the founder, an heir of the founder or a beneficiary and on which he must pay tax.

The first royal decree lists three legal entities within the European Economic Area.

  1 Liechtenstein – Anstalt

– Stiftung

 2 Luxembourg – Société de gestion Patrimoine Familiale

Even if the taxpayer were to prove that the entity paid more than 15% tax, he cannot avoid taxation.

The second royal decree lists all entities outside the European Economic Area that are deemed to be legal arrangements, but the taxpayer can prove that the entity paid more than 15% tax.

  1 Anjouan (Union of the Comoros) – International Business Company
  2 Antigua and Barbuda – International Business Company
  3 Anguilla – International Business Company
  4 Aruba – Stichting Particulier Fonds
  5 Bahamas – International Business Company

– Foundation

  6 Barbados – International Business Company

– International Society with Restricted Liability

  7 Belize – International Business Company
  8 Bermuda – Exempt Company
  9 British Virgin Islands – Company
10 Brunei – International Business Company
11 Cayman Islands – Exempt Company
12 Cook Islands – International Company
13 Costa Rica – Company
14 Djibouti – Exempt Company
15 Dominica – International Business Company
16 Isle of Man – Company
17 French Polynesia – Société
18 Grenada – International Business Company
19 Guam – Company
20 Guatemala – Fundación
21 Guernsey – Company
– Foundation
22 Hong Kong – Private Limited Company
23 Jersey – Company

– Foundation

24 Labuan (Malaysia) – Offshore Company
25 Libanon – Companies that qualify for the offshore companies regime
26 Liberia – Non-resident company
27 Macao – Fundação
28 Maledives – Company
29 Marshall Islands – International Business Company
30 Mauritius – Global Business Company category 1

– Global Business Company category 2

31 Micronesia – Company
32 Monaco – Fondation
33 Montserrat – International Business Company
34 Nauru – Company

– Other forms of company negociated with the government

35 Netherlands Antilles – Stichting Particulier Fonds
36 New Caledonia – Société
37 Niue – International business company
38 Northern Mariana Islands – Foreign sales corporation
39 Palau – Company
40 Panama – Fundación de interés privado
41 Panama – International Business Company
42 Saint Kitts and Nevis – Foundation

– Exempt Company

43 Saint Lucia – International Business Company
44 Saint Vincent and the Grenadines – International Business Company
45 Salomon Islands – Company
46 Samoa – International company
47 San Marino – Fondazione
48 Sao Tomé and Principe – International Business Company
49 Seychellen – International business company
50 Switzerland – Foundation
51 Turks and Caicos – Exempt Company
52 Tuvalu – Provident Fund
53 United Arab Emirates – Offshore Company
54 USA  State of Delaware
State of Wyoming
– Limited Liability Company
– Limited Liability Company
55 US Virgin Islands – Exempt Company
56 Uruguay – Sociedad Anónima Financiera de Inversión
57 Vanuatu – Exempt Company
58 Vanuatu – International company

Author: Marc Quaghebeur

Marc Quaghebeur is a Belgian tax lawyer with Cabinet DAVID specialising in international tax issues and cross border estate planning. He is a member of the Brussels Bar and the Society of Trust and Estate Practitioners. He

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