DITC Economic Substance Cayman Islands

Organization : Department For International Tax Cooperation (DITC)
Facility : Economic Substance
Country : Cayman Islands
Website : https://www.ditc.ky/es/

What is Cayman Islands Economic Substance?

The Cayman Islands Economic Substance Act (ES Act), as amended by the International Tax Cooperation (Economic Substance) (Amendment) Act, 2020, came into force on 1 January 2019. The ES Act was enacted as a result of Cayman’s collaboration with the OECD’s Forum on Harmful Tax Practices and the European Union Commission Services to implement the standard on substantial activities requirements.

Related / Similar Facility : DITC Crypto-Asset Reporting Framework (CARF) Cayman Islands

FAQ On Cayman Islands Economic Substance Notification

Frequently asked questions regarding ES in the Cayman Islands.

1. How do I submit the ESN?
The ESN is submitted via the General Registry system CAP (Corporate Administration Platform). Entities which file on CBP (Cayman Business Portal) will be required to confirm if they are carrying on a relevant activity when they file their Annual Returns (ARs).

2. How do I reset my CAP password?
The DITC cannot assist with passwords for accessing CAP. Please send your request to the CORIS help desk: Corishelpdesk@gov.ky. Please note that password reset requests must be submitted by your CORIS Administrator.

3. How do I get access to CAP?
The DITC cannot assist with any queries on accessing CAP. Please visit the General Registry’s website for details (Linked here). Please note that access to CAP is only available to locally licensed service providers.

4 .Where can I find the ESN once I am logged into CAP?
Manual Form – please refer to the detailed steps outlined in the User Guide (Linked here).
Bulk Upload – please refer to the detailed steps outlined in the User Guide (Linked here).

5. Is there a PDF version of the ESN available?
No, there is no PDF version available as the ESN is a smart form such that, each question depends on the answer to the previous, which will not be the same for each entity. There are many useful reference documents on the DITC’s website (Linked here).

6. Is there a fee to submit the ESN?
No.

7. Is the ESN an annual requirement?
Yes.

8. What is the deadline to submit the ESN?
The ESN is a prerequisite to filing the Annual Return (AR). The ESN submission deadline is the same as the AR filing deadline.

9. Is there a penalty for submitting the ESN late?
The Tax Information Authority (TIA) will not impose a separate penalty for the late submission of the ESN. The entity will be penalized through the AR process.

10. Is there a delay or approval process after the ESN is submitted before the AR can be filed?
No, once the ESN is submitted successfully without triggering validation errors, the AR can immediately be filed.

11. How do I know the ESN was successfully submitted? Where can I find confirmation?
Process to check Bulk File import Status:
a. Click on “Manage” tab and then select “Contact Admin”.
b. Go down to the Import Message section on the page.
c. This will show if the ESN Bulk file was uploaded into the CAP system successfully.
d. Keep in mind that this will show the number of ESNs for all Entities that you filed inside the bulk file.
e. The system will show if there were any data format errors inside bulk upload file.
f. Click on failures Icons to see errors (If any).

Process to check Economic Substance Status:
a. Click on “Manage” tab and then select “Annual Return Batches”.

b. Under the Economic Substance Status section the system will display all the completed ESN files for the completed Entities.
i. If you see the entity listed, it means the ESN upload was successful and you can proceed to file the Annual Return for that specific entity.
ii. Please note that you do not have to wait on the DITC Team to “Approve” the filings. Once the system is showing the ESN as filed you can proceed to file your Annual Return for that entity.

c. You can export the list of Entities by selecting the date you uploaded the ESN bulk upload file and then click in Export. This will save all the details to a CSV file that you can then open in Excel. You will not receive an email with confirmation status.