Dec-09-2009 Cayman Islands 2009-2010 Balanced Budget

The Cayman Islands 2009-2010 budget is expected to create a small surplus of income as a result of cuts in expenditures in conjunction with increases in revenue resulting from new and increased government fees. The government is focused on strengthening the local economy and tightening financial management.

The Cayman Islands has rejected the call for the introduction of direct taxes and has instead decided upon increases in levies on international trade and domestic levies on goods and services, comprising mainly of increases in import duties, bank, trust and company licence fees and work permit fees.

The Cayman Islands last increased company fees over 10 years ago. In that context we believe the increases are a modest cost to ensure that Cayman maintains its position as the preeminent offshore jurisdiction through enhancement of the services it provides and maintenance of its robust regulatory environment.

The following table shows the revised registration fees and the annual fees for the Cayman Island Exempted Company, which will come into effect on 1 January 2010. 

Moody's recently reconfirmed the Cayman Islands Aa3 rating and its 'stable outlook' for the Islands. The Cayman Islands also firmly secured its listing on the Organization for Economic Cooperation and Development's (OECD) 'White List' as an internationally approved financial jurisdiction and was recently appointed to the OECD's Global Forum Steering Group.

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