1. Taxes
There are no taxes on income, profits, wealth, capital gains, sales,estates, or inheritances. The major revenue producer is an excise tax levied on most imports together with license fees. Moreover, by incorporating as an exempted company or exempted trust, it is possible to obtain a guaranteed exemption from any possible future income, capital,and capital gains taxes for 20 years, as well as other benefits. An exempted company is one that declares it will not engage in trade within
the Cayman Islands. Most foreign companies incorporate as exempted companies. The Islands have no tax treaties or arrangements with other countries, including the United Kingdom. Approximately 38,000 companies are registered with the Registrar of Companies.
2. Exchange Controls
There are no exchange controls in the Cayman Islands, and all foreign currencies are freely convertible.
3. Banking Facilities
The growing tourist industry, as well as trust, insurance, and mutual fund activities, require a sophisticated banking system to handle the inflow of offshore money. This is supplied by over 580 banks doing business in the Cayman Islands, including branches of many of the worldlargest banks.
4. Approximate Costs
The establishment of an exempted company costs approximately US$1,600. The annual government fees start at US$500, and the minimum annual charge for management ranges from US$1,000 to US$1,750. The fees for servicing a trust depend on the extent of the activity.
5. Insurance Industry
In 1980, the Cayman Islands Government passed an insurance law and regulations with a view to attracting the business of captive insurance companies to the Islands, but with a minimum of legislation. To date,over 429 companies have obtained licenses under the law. The absence of taxation in the Cayman Islands often makes the formation of a captive insurance company an attractive proposition, particularly in respect of
the management of the company assets and investment portfolio.
6. Mutual Funds
The Cayman Islands, a leading center for incorporation and administration of offshore mutual funds, enacted The Mutual Funds Law 1993 to regulate mutual funds and mutual fund administrators. Presently, approximately 1,500 funds and 100 administrators are licensed or regulated under the provisions of the law.
来源：CFTInet, Beijing
