The Cayman Islands government on April 30 released guidance explaining the International Tax Co-operation (Economic Substance) law, 2018 which came into force on January 1. The new guidance is designed to help multinational taxpayers understand the scope of the new law and how to comply with it.
The Cayman Island law and guidance follow OECD Forum on Harmful Tax Practices standards that require companies that conduct geographically mobile activities to have substantial activities in a low or zero tax country to be considered tax resident there. They also respond to the EU work on fair taxation.
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