Since their first appearance in the 1950s, Special Economic Zones (SEZs) have developed into widespread global business and commerce hubs. With thousands of active and developing SEZs, they have become a preferred choice for thousands of entrepreneurs and companies seeking to establish their business presence offshore. Cayman Enterprise City (CEC), a growing SEZ in the Cayman Islands, has many exclusive characteristics and advantages that make it stand out among the competition.
An Overview of SEZ’s
According to the United Nations Conference on Trade and Development’s (UNCTAD) 2019 World Investment Report, there are over 5,400 special economic zones across 147 countries today, with over 500 more planned/in development. Among these, China has the highest concentration and largest SEZs.
In the Caribbean region, there are over 400 SEZs. CEC is unique in that it is the largest innovation ecosystem and the largest ICT cluster in the Caribbean region. CEC’s advanced technological infrastructure makes it the ideal place for digitally-focused companies to set up and establish their global presence while enjoying a modern lifestyle on an island paradise.
SEZs are hubs for all manner of business transaction. There are different kinds of SEZs that specialise in specific types of economic activity. For example, companies within a free trade zone focus on the free trade of goods and services internationally with little to no barriers. CEC’s SEZ companies provide services across many fields in the science and technology, internet, media, commodities and derivatives, maritime and aviation sectors.
Because SEZs are initiatives developed to attract foreign investment, there are incentives to encourage establishment within an SEZ, the most common of which being tax benefits. Companies and entrepreneurs can take advantage of tax waivers and reductions.
In most economies, companies and individuals are subject to several common taxes, such as income taxes, value added taxes (VAT), payroll taxes, capital gains taxes, sales taxes and property taxes. These taxes can be as high as 30% of company profit, depending on location and company details. In SEZs, investors and entrepreneurs benefit from a reduction or waiver of one or more of these taxes. Comparatively, CEC offers 100% tax breaks for corporations and individuals, making it the preferred choice for many companies and entrepreneurs.
Because Cayman is a tax-neutral jurisdiction, companies incorporated within CEC and individuals employed by them are completely exempt from all taxes. Persons residing on the islands pay zero taxes, including personal ones. CEC SEZC’s experience many other benefits besides tax exemptions that makes it not only the ideal place to work but also live.
If you would like more comprehensive advice and consultation with experts about the tax benefits of incorporating within CEC, check out Trowbridge Professional Corporation. Trowbridge is a global accounting firm that specialises in international taxes services. Their expert services make them a preferred service provider of CEC. They offer a number of global mobility and tax services for individuals and corporations. Their team will ensure you remain compliant and help you to meet your global mobility objectives while incorporating your company offshore. Trowbridge can help you to simplify the financial complexities of crossing borders.
If you are interested in incorporating your business within CEC’s tax-neutral special economic zones, find out more here, or fill out our contact form and an expert from our Global Mobility team will reach out for a free consultation about your next steps to set up your business.