Cayman removed from EU list of non-cooperative jurisdictions for tax purposes

The Cayman Islands has been removed from the EU’s list of non-cooperative jurisdictions for tax purposes.

The removal confirms that the Cayman Islands’ legal and regulatory regimes meet, or exceed, international standards.

Background

The Cayman Islands was placed on the EU’s list of non-cooperative jurisdictions for tax purposes in February 2020. The decision was made despite the Cayman Islands Government being in the process of implementing further regulatory modifications recommended by the EU’s Economic and Financial Affairs Council (ECOFIN).

Since then, the Cayman Islands Government has worked closely with the EU to address its requirements while maintaining its position as a leading international fund domicile. This included bolstering its anti-money laundering and funds regulatory frameworks and introducing a regime requiring economic substance within the Cayman Islands.

Removal from the list

The Cayman Islands’ numerous legislative changes has meant that the EU officials’ concerns have been addressed.

This demonstrates the Cayman Islands’ ongoing commitment to being a transparent and cooperative jurisdiction that meets global standards. Cayman’s public and private sectors continue to work together closely to promote good governance. Cayman’s measures to combat corruption, money laundering and terrorist financing are fully in line with international standards.

Cayman is the most popular offshore jurisdiction for hedge funds globally. Last year, more than 10,000 funds were licensed by the Cayman Islands Monetary Authority and with the private funds law, over 12,300 private funds have also been registered.

Speak with our team

Mainstream’s experienced administrators can help you navigate Cayman’s regulatory and reporting requirements. Contact us today to learn more about how we can help set up your open or closed Cayman fund.

Important Disclosure

This article is not intended to be financial advice and is of a general nature only that does not take into account your individual objectives, financial situation or needs. While all efforts have been made to ensure the information contained in this article is accurate, errors may occur.