Competing income/payroll taxes

Many of the Cayman Islands’ competitor jurisdictions have taxes on income, wages and or payroll, although none impose greater taxes on expatriates than locals. 

 

Unless otherwise specified, the information below was gathered from member firms of KPMG International Cooperative, and does not include information on deductions, exemptions, or special cases for international business activities. 

The rates also do not necessarily include taxes levied by smaller governmental entities, in the United States for example, by states, counties or cities. 

 

Anguilla 

Income tax of 3 per cent paid by employee, plus 3 per cent paid by employer 

Self-employed income tax of 6 per cent 

Social security tax of 5 per cent paid by employee, plus 5 per cent paid by employer 

 

Bahamas 

Social security tax of 3.9 per cent paid by employee, plus 5.9 per cent paid by employer 

 

Bermuda (from Bermuda government) 

Payroll tax of 5.25 to 14 per cent 

Social insurance tax of US$3,161.60 per year, 50 per cent from employee and 50 per cent from employer 

For defined benefit pension plans, 0.25 to 1.25 percent of final average earnings from employee, plus 0.25 to 1.25 per cent from employer 

For defined contribution pension plans, 1 to 5 per cent of pensionable earnings from employee, plus 1 to 5 per cent from employer 

 

British Virgin Islands (from BDO and BVI government) 

Payroll tax of 8 per cent paid by employee, plus 6 per cent paid by employer (small business employers pay 2 per cent) 

Social security tax of 4 per cent paid by employee, plus 4.5 per cent paid by employer 

For civil servants, social security tax of 3.5 per cent paid by employee, plus 4 per cent paid by employer 

In the process of implementing guidelines where employers will have to provide employees with pension plans, but with contribution rates at the employers’ discretion 

 

Cyprus 

Income tax of 20 to 35 per cent 

Expatriates can qualify for tax exemptions for three years for up to 20 per cent of income (maximum of 8,550 euros). Expatriates with an income of more than 100,000 euros can qualify for tax exemptions for five years for up to 50 per cent of income. 

Special contribution tax of 1.25 to 1.75 per cent paid by employee, plus 1.25 to 1.75 per cent paid by employer 

Social security tax of 6.8 per cent paid by employee, plus 10.5 percent paid by employer 

 

Guernsey 

Income tax of 20 per cent 

Social security tax of 6 per cent paid by employee, plus 6.5 per cent paid by employer 

 

Hong Kong 

Income tax of 2 to 17 per cent 

Social security tax of 5 per cent paid by employee, plus 5 per cent paid by employer 

 

Ireland 

Income tax of 20 to 41 per cent 

Universal Social Charge of 2 to 7 per cent 

Social security tax of 4 per cent paid by employee, plus 10.75 per cent paid by employer 

 

Isle of Man 

Income tax of 10 to 20 per cent 

Social security tax of 1 to 11 per cent paid by employee, plus 12.8 per cent paid by employer 

 

Jamaica 

Income tax of 25 per cent 

Social security tax of 6.5 per cent paid by employee, plus 8.5 per cent paid by employer 

 

Jersey 

Income tax of 20 per cent 

Social security tax of 6 per cent paid by employee, plus 6.5 per cent paid by employer 

 

Malta 

Income tax of 15 to 35 per cent 

Social security tax of 10 per cent paid by employee, plus 10 per cent paid by employer 

Social security tax for self-employed people of 15 per cent 

 

South Africa 

Income tax of 18 to 40 percent 

No social security system, per se, but similar taxes do apply. Some do not apply to expatriates in certain instances. 

 

United Kingdom 

Income tax of 20 to 50 per cent 

Social security tax of 12 per cent paid by employee, plus 13.8 per cent paid by employer 

 

United States 

Income tax of 10 to 35 per cent 

Social security/Medicare tax of 7.65 per cent paid by employee, plus 7.65 per cent paid by employer 

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