Cayman Changes Expat Tax Bracket: $20k To $36K
The 10% tax on expatriates’ salaries in the Cayman Islands will be applied to workers earning $36,000 and more a year, not $20,000 as first announced, the Cayman media report.
The Caymanian Compass reports that Cayman Premier McKeeva Bush announced that contrary to his earlier announcement that the payroll tax would be imposed at the $20,000 mark, work permit holders earning more than $36,000 would be subject to the proposed tax, which he said was being introduced as a “last resort”.
The 10% would apply to a “wide definition” of salaries and would likely include bonuses and other compensation, reports said. Someone making $35,000 a year would pay no tax, but someone making $36,000 a year would pay the full 10% levy on their entire salary.
The Cayman media also reported the planned introduction of a 5% additional fee, based on salaries, that would be levied on employers of expat staff in certain categories of employment.
36k is nothing
I find it curious how often Bernews and RG report stories coming from Cayman. Obviously the push and thus success of luring IB away from Bermuda and to Cayman has people in a tizzy. And rightfully so.
The Cayman gov is fast backtracking from this stupid proposal which would have done for them what the payroll tax hike and term limits did to us.
Govt Mantra – “when in doubt (debt) – increase taxes…”