The Cayman Islands Economic Substance developments

The Cayman Islands Government recently published a Bill to supplement the economic substance law. The contents of the Bill reflect feedback received from the EU Commission and the FHTP Secretariat. Our client alert in relation to the changes proposed by the Bill can be foundhere.

At the same time as the Bill was published the Cayman Islands Department for International Tax Cooperation released a draft  version 3 of the Economic Substance Guidance Notes. The draft includes sector specific guidance which will be a useful resource for many entities, once approved.

Both the Bill and the draft Guidance Notes were published to seek industry comment at the outset and both are in draft form, so there is a possibility that amendments may be made before the final versions are approved.