It is important to know how and when you should pay your tourist accommodation and timeshare taxes.
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Are Tourist Accommodation Taxes (TAT) and Time Share Taxes (TST) due given that there are limited tourists in the Cayman Islands?
No, TAT have been waived for the 2021 year expiring on December 31, 2021.
Yes, TST are required to be paid.
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Are quarantine guests subject to TAT and TST?
Yes. If your guest is a person not ordinarily a Resident in the islands, visiting the islands and remaining therein continuously for a period not exceeding six months then they are subject to TAT and TST. Guests should be charged TAT and TST per the Tourist Accommodation (Taxation) Law, (2013 Revision).
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If nobody is staying in my property, should I still submit TAT and TST forms?
Yes, even if you have not had anyone staying in your properties, please submit the TAT and TST forms to ar@caymanislands.ky stating such. This is considered submitting a nil return. However, forms are not required to be submitted for the waived periods (April 1 thru September 30 2020 and January 1 thru December 31 2021)
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Are TAT and TST taxes due for January thru March 2020?
Yes, these taxes for these months must be paid. Please submit if you have not done so already. February and March 2020 TAT and TST are due for payment noting that the 20% surcharge (late fee) is waived for TAT only. The surcharge is applicable for January 2020 tax submissions.
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Are TAT and TST taxes due for October – December 2020?
Yes. There is no waiver of taxes for this period. Please submit if you have not done so already to avoid any further late payment fees.
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Do I need to keep records of stays at my property?
Yes, under the Tourist Accommodation Law (2013) revision in section:
- 5(1) states: The collector of Taxes may, at his absolute decision, inspect all records kept under this Law at any time.
- 10(1) state: Whoever knowingly concerned in, or in taking of steps with a view to, the fraudulent evasion of tax by him or any other person, is guilty of an offence and liable on summary conviction to a fine of fifty thousand dollars or of three times the amount of the tax, whichever is the greater, and to imprisonment for two years.
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When are Tourist Accommodation Taxes (TAT) due?
Tax is due on 28th day of each month for the previous month (i.e. collections for April are not paid until May).
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If the 28th day falls on a weekend or public holiday, when is Tourist Accommodation Taxes (TAT) due?
It is the Proprietor’s responsibility to ensure that submissions are made to the Department of Tourism on days of operation before the deadline.
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What are the operating hours for the cashier?
Operating hours are from Monday to Friday, 9am-3pm.
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Who is subject to pay Tourist Accommodation Taxes?
Taxes are to be paid by “a person not ordinary a Resident in the Islands, visiting the Islands and remaining therein continuously for a period not exceeding six months” (i.e. tourists).
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What is the conversion rate when paying TAT/ TST?
If report is in CI$ being paid by US$ cheque (divide @.82)
If report is in CI$ being paid by US$ cash (divide @.80)
If report is in US$ being paid by CI$ cheque (multiply @.82)
If report is in US$ being paid by CI$ cash (multiply @.80)
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Form of Payments?
LOCAL ELECTRONIC FUNDS TRANSFER
Funds maybe remitted to the Cayman Islands Government (CIG) via the Automated Clearing House (ACH) Electronic Funds Transfer (Direct Deposit), from any of the following Cayman Islands Automated Clearing House (CIACH) participant Banks:
Cayman National Bank Limited
Butterfield Bank (Cayman) Limited
CIBC FirstCaribbean International Bank (Cayman) Limited
Fidelity Bank (Cayman) Limited
RBC Royal bank (Cayman) Limited
Scotiabank & Trust (Cayman) Limited
ELECTRONIC FUNDS TRANSFER INFORMATION
MINISTRY OF DISTRICT ADMINISTRATION, TOURISM & TRANSPORT (DAT&T)
*Beneficiary ‘Short Name’ CIG TOURISM DAT&T
Address 133 Elgin Avenue, Govt. Admin. Bldg. Grand Cayman
Beneficiary Bank RBC Royal Bank (Cayman) Limited
Beneficiary Account Number KYD 069751126994
USD 069752624450
Beneficiary Account Type Chequeing
Transit Number 06975
Reference e.g. Department/Agency’s name, Fee type, and Invoice number (Tourist Accommodation Licensed Property Name, Period of payment)
*Beneficiary ‘Short Name’ name must be entered online as stated above
ACH ELECTRONIC FUNDS TRANSFER MAXIMUM LIMIT
An individual ACH transaction should not exceed USD 500,000 or the KYD 400,000 equivalent as per CIACH and/or Participant Bank Guidelines for standard ACH transactions. Clients can opt to:
Do multiple transactions less than USD 500,000 or KYD 400,000 equivalent or pay by cheque/draft.
Please contact your Bank to verify that the maximum amount does not supersede any lower daily digital transaction limit, which may have been set by the Participant Bank.
CROSS CURRENCY
Please ensure that the same currency is selected (paying/receiving), alternatively contact your Bank regarding cross currency transactions (e.g. funds sent in KYD but the receiving account is USD a/c and vice versa).
Reminder
Email a copy of executed direct deposit to receiving Department/Agency
INCOMING WIRE INSTRUCTIONS
U.S DOLLARS
Intermediary Bank: J.P. Morgan Chase
Intermediary Bank Address:
1 Chase Manhattan Plaza
New York, N.Y. 10081
U.S.A.
Swift Code: CHASUS33
ABA #: 021 0000 21
Beneficiary Bank: RBC Royal Bank (Cayman) Limited
Beneficiary Bank Address:
24 Shedden Road, Royal Bank House
P.O. Box 245
Grand Cayman KY1-1104
CAYMAN ISLANDS
Swift Code: ROYCKYKY
A/C # 001 1 153 103
Beneficiary: Cayman Islands Government
Name of Account: Ministry of District Administration, Tourism & Transport USD Executive Revenue
Account #: 06975-2624450
PHYSICAL DEPOSITS (CASH & CHEQUE)
Funds may be remitted to the Cayman Islands Government (CIG) at the Royal Bank of Canada and Dropbox at the Government Administration Building (GAB) by a physical deposit of KYD & USD Cash and Cheque. ** Cash should not be placed in the Dropbox at GAB**
KYD & USD Cash
KYD & USD Cheques
KYD & USD Bank Drafts
US Overseas Cheques (Minimum of US$100.00)
US Bank Draft & Money Orders (Minimum of US$100.00)
For CI$ being paid by US$ cheque (divide @.82)
For CI$ being paid by US$ cash (divide @.80)
For US$ being paid by CI$ cheque (multiply @.82)
For US$ being paid by CI$ cash (multiply @.80)
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Why is a surcharge applicable when the TAT payment was mailed early?
Unfortunately, the Department of Tourism is not responsible for late postal deliveries therefore, it is the property’s responsibility to ensure that payments are received by the Department on or before the 28th day of the month otherwise the surcharge will be applied automatically.
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How are the Tourist Accommodation Taxes calculated?
Taxes should be calculated at 13% on the gross room rate. If there are any deductions for cleaning, electricity, maintenance, agents etc., taxes should be calculated before these services and not after). N.B- Effective January 1, 2014, the TAT of 13% must be applied to all accommodation bookings.
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What information is required when submitting taxes?
- Must be a licensed property
- A “Tax Form” must be completed by all properties
If property system has a report with the required information, this can be submitted as an attachment to the signed “Tax Form” Unfortunately, the Department of Tourism is not responsible for late postal deliveries therefore, it is the property’s responsibility to ensure that payments are received by the Department on or before the 28th day of the month otherwise the surcharge will be applied automatically.
- Backups must be attached – folios, receipts, confirmations (DISC OR USB)
- Proof of being local/ resident
- A Cayman Islands passport
- Non-Cayman Islands Passport (picture page) with permit or status stamp
- Cayman Islands Work Permit with valid picture I.D
- Cayman Islands Voter Registration Card
- Valid Cayman Islands Government Employee I.D
- Cayman Islands Medical Insurance Card with valid picture I.D
If proof of locals/residents is not attached to the submission, then taxes will be calculated on the accommodated rate as if it were provided to a non-resident.
- Payment
- If no occupants, a NIL return form MUST be completed for each month.
In this regard, please ensure that your next submission is completed on or before the 28th day of the month, otherwise it would be deemed late and subject to a 20% surcharge.
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Are the TAT forms required even if there were no occupants for a particular period?
Yes, TAT forms should still be submitted.
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How are surcharges calculated?
If TAT/ TST are not submitted on or before the 28th day of the month, 20% of the tax due is automatically applied to the actual tax payable for the month.
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Do Caymanians pay taxes?
Caymanians do not pay taxes if they are staying at a property, however, if they are only paying for a tourist who is staying at the property and not actually staying at the property, taxes apply. This also applies to Caymanians living overseas. Additionally, when taxes are submitted, ensure that proof of Caymanian ‘status’ be submitted also (see forms of identification in point 13)
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What form of I.D. is required for proof of status?
- A Cayman Islands passport
- Non-Cayman Islands Passport (picture page) with permit or status stamp
- Cayman Islands Work Permit with valid picture I.D
- Cayman Islands Voter Registration Card
- Valid Cayman Islands Government Employee I.D
- Cayman Islands Medical Insurance Card with valid picture I.D
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What is the responsibility of the Department of Tourism with regards to TAT/TST?
The Department of Tourism only acts as a collection agency of taxes. The department cannot waive surcharges on any request. The law makes no allowance for waiving surcharges.
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What happens if a visitor stays in the same accommodation for a period exceeding 28 days?
If a visitor stays in the same accommodation for a period exceeding 28 days, the tax should be applied upon check-out regardless if the period spans across months.
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How and where can taxes be submitted?
Supporting documentation can be emailed to ar@caymanislands.ky
District Administration Building (Cayman Brac)
Treasury Department
PO Box 240, Cayman Brac KY2-2101
CAYMAN ISLANDS
Government Administration Building (Grand Cayman)
Cayman Islands Department of Tourism
By any of the following methods:
- Hand delivery (Government Administration Building, 133 Elgin Avenue, 3rd Floor)
- Courier
- Mail mail to:
- Cayman Islands Department of Tourism
Government Administration Building Box 134
133 Elgin Avenue, Grand Cayman KY1-9000
CAYMAN ISLANDS
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Who can submit TST/ TAT?
The Proprietor (Manager) can submit TST / TAT. Operators and Owners or other persons identified on the Hotel License Form can submit TST / TAT.
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Who pays Timeshare Taxes (TST)?
- Owner of the timeshare
- A guest of the timeshare
- A person who has exchanged his timeshare
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How is the Timeshare Tax calculated?
US$10.00 per day or part of a day, in respect of each room that is occupied in a timeshare. (EXAMPLE: 3 Rooms X $10.00 X per day/part of a day, (Saturday 1/2 day to Saturday 1/2 day = 8 days)
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Who can be contacted for queries?
More Information
Mr. Michael Gardner
Accounts Officer (Receivable)
Responsibilities: collects tourism-related taxes and fees, as well as the inspection and audit of records
Direct dial: 345-244-1286
Mrs. Wendy Callender
Accounts Officer (Receivable)
Responsibilities: collects Tourism Accommodation Taxes, hotel and licensing fees, and other departmental revenues
Direct dial: 345-244-1260
Mrs. Schelita Corpus
Accounts Receivable Supervisor
Responsibilities: oversees all accounts and audit of records, and collects tourism-related taxes and fees
Direct dial: 345-244-1261
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Record keeping for TST/TAT
1. Tax submissions are effective from the date of the License being approved
2. The on-island Operator or Manager must ensure a copy/original of all submissions is kept on island.
3. Powers of the collector of Taxes (Director and his duly appointed representatives)
Under the: Tourist Accommodation Law (2013) revision in Section:
- 5:1 states: The collector of Taxes may, at his absolute decision, inspect all records kept under this Law at any time.
- 10:1 states: Whoever knowingly concerned in, or in taking of steps with a view to, the fraudulent evasion of tax by him or any other person, is guilty of an offense and liable on summary conviction to a fine of fifty thousand dollars or of three times the amount of the tax, whichever is the greater, and to imprisonment for two years.