Employer Tax Contributions

Tax Type	Rate	Base
National Pension	5%	Employee earnings up to CI$87,000 annually
Health Insurance	Min 50%	Employee-only Standard Health Insurance Contract (SHIC) rate or lowest plan available
Work Permit Fees	Varies	Occupation/Position

Filing & Compliance

• Pension contributions must be remitted by the 15th day of the month following the payroll period.
• Employers must provide health insurance coverage for all eligible employees and their dependents.
• All work permit fees are the employer's responsibility.

In the Cayman Islands, there are no direct taxes on individuals, meaning no income tax, capital gains tax, inheritance tax, or property tax. However, there are mandatory contributions for both employees and employers towards pension and health insurance.

Deductions from Salary

• Pension Contributions: Employees contribute 5% of their salary up to a ceiling of KYD 87,000 annually.
• Health Insurance: Costs are generally split equally between the employee and employer. Employees pay additional costs for dependents or upgraded plans.

Employer Contributions

• Pension Contributions: Employers contribute 5% of the employee's salary up to the annual ceiling of KYD 87,000.
• Health Insurance: Employers cover half of the basic health insurance plan costs.

Other Considerations

• As of today, February 5, 2025, this information is current, but tax laws are subject to change. It is important to stay informed about any updates or amendments to Cayman Islands tax regulations.
• It's important to note that while there are no direct taxes on individuals in the Cayman Islands, US citizens and residents may still have tax obligations in the US, including reporting worldwide income to the IRS. This is also true for residents of other countries with similar tax laws.
• Businesses operating in the Cayman Islands are subject to certain fees, such as an annual renewal fee to maintain legal status. This fee is mandatory and while not technically a tax, it is a cost of doing business in the Islands.