Along with its fellow Overseas Territories, Crown Dependencies
and other international financial centres, the Cayman Islands has
comprehensive legislation and regulations requiring legal entities
domiciled or registered in the Islands and carrying on certain
activities to have demonstrable substance in Cayman.
The International Tax Co-operation (Economic Substance) Act
(Act) reflects Cayman's commitment to its
obligations as a member of the OECD/G20 global Inclusive Framework
on Base Erosion and Profit Shifting (BEPS) and corresponding EU
requirements for no or nominal tax jurisdictions.
This briefing summarises the key elements of the Act, which has
been subject to various updates since its introduction, and draws
upon guidance (Guidance) and enforcement
guidelines (Enforcement Guidelines) issued by the
Cayman Islands Tax Information Authority (TIA)
which has responsibility for the supervision and implementation of
the Act.
