Duty Concessions Extended
In its ongoing effort to maintain and stimulate further economic activity, the Government has extended the following duty concessions to 31st December 2020:
- the import duty concessionary rate of 12.5 cents per gallon on the importation of motor gasoline to Cayman Brac;
- the 100% import duty waiver on building materials imported to Cayman Brac and Little Cayman; and
- the 100% stamp duty waiver, in respect of land purchases on Cayman Brac.
The flat 15% import duty rate on building materials imported to Grand Cayman has been extended to 31st December 2016.
In announcing the extension of the duty concessions, the Minister for Finance & Economic Development, the Honourable Marco Archer said, "The extension of these concessions is consistent with Government's ongoing efforts to stimulate further growth in the economy, and I encourage all developers and other stakeholders to accelerate their construction activity during this further concessionary period."
The normal rate of import duty on motor gasoline is 75 cents per gallon whilst the normal import duty rate on building materials ranges from 17% to 22%.
For the purpose of these concessions, building materials have been defined as: "All physical components and substances, whether solid or liquid, used in the construction, renovation or restoration and forming a permanent part of any building or related structure." Items such as furniture, accessories, electronics and appliances are specifically excluded.
The conditions and definitions involved in the 100% stamp duty waiver, in respect of land purchases on Cayman Brac, are:
- the stamp duty waiver will be for the development of accommodation dwelling (homes and apartments) and any other physical structure from which a business - whatsoever the nature of the business - can be carried on;
- the stamp duty waiver will be granted to both individuals and legal entities;
- development is defined as construction being completed within two years of the purchase of the property;
- completion is defined as when the development is fit for occupancy; and
- if the development of the property is not completed within two years and in the absence of a reasonable explanation, applicants are required to either pay the stamp duty in full plus a penalty of 10% of the stamp duty or, request a further extension from the Honourable Minister for Finance & Economic Development in order to complete the development of the property.