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Cayman Islands

The Cayman Islands are a British overseas territory consisting of three islands in the Caribbean Sea. The financial services industry is one of the main industries in the Cayman Islands, and it is committed to the continued development of the offshore financial services industry. Looking at the perceptions of the international community, the Cayman Islands is considered a mature international financial center.

The Cayman Islands' popularity and reputation have gradually increased significantly, especially in Asia, as it is one of only two offshore centers listed on the Hong Kong Stock Exchange through the Hong Kong Stock Exchange. The Cayman Islands also established its own stock exchange in 1997.

Legal system and tax system

Cayman Islands company law is based on English common law. Cayman companies can be classified as: (1) exempt companies; and (2) non-resident companies. The long-term license fee for non-resident companies is less than that for exempt companies. However, non-resident companies must submit more detailed annual returns. As a result, non-resident companies have not yet gained much traction in Asia.

The Cayman government declared an exemption from profits tax in 1798, and this law is still in effect today. Unlike other regions, exempted companies do not have "Limited Company" at the end of their company names. Exempted companies can apply for a 20-year tax exemption certificate to further establish their tax-exempt status. In addition, the name of a Cayman company can be expressed in Chinese characters, and the company needs to provide its translation to the Cayman government.

In November 2001, the Cayman government and the United States signed a new information exchange agreement. The U.S. government may request information from the Cayman government for U.S. income tax civil and administrative cases upon request. The agreement applies to criminal tax evasion for the taxable period beginning January 1, 2004, and to all other tax matters for the taxable period beginning January 1, 2006.

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