Cayman Islands – EU List of Non-Cooperative Tax Jurisdiction
Effective on 18 February 2020, Cayman Islands has been moved to Annex 1 of the EU’s list of non-cooperative jurisdictions for tax purpose (“Annex 1”) due to not having appropriate measures in place relating to economic substance in the area of collective investment vehicles (“CIVs”), announce by EU after the meeting of the EU’s Economic and Financial Affairs Council.
This appears to be a technical issue arising out of the delay in enacting the Private Funds Law and Mutual Funds (Amendment) Law on 31 January 2020, which came into force on 7 February 2020, to address the EU’s requirements in relation to CIVs.
The Cayman Islands Government (“CIG”) has commenced discussions with EU officials to have the Cayman Islands removed from Annex 1 as soon as possible, practically in October 2020.
Keyway is continuously monitoring the situation and will advise further in the event of any updates. If you have further queries, please contact your Keyway Representative.