Cayman’s Special Economic Zone reaches out to tech companies in Kitchener / Waterloo Ontario Outreach this August
Chris Morgan Global Business Development Manager at Cayman Enterprise City will be in Kitchener / Waterloo in Ontario’s Technology Triangle province next month meeting with software development companies, E-marketing firms and Internet and technology related enterprises. “Having spent many years living and working in the Waterloo Region it is great seeing the growth of cutting edge technology companies based right here in K-W. I am pleased to be able to bring my knowledge of international business structuring to tech companies based here and providing them with new opportunity through Cayman Enterprise City to expand their businesses globally.”
Morgan has a series of meetings scheduled with CEOs to promote the benefits of Cayman’s Special Economic zone to Canadian tech companies, which include 3 primary value propositions;
• Tax Mitigation
• IP Protection
• Maximized Value to Shareholders
Tax Mitigation
If companies intend expanding their business outside of Canada or a considerable portion of their existing revenues are coming from outside of Canada, Cayman’s Economic Zone structure can offer the opportunity to significantly reduce their tax burden on their International Revenues. By establishing a Cayman Islands Company and having their international revenues booked through their Cayman subsidiary the tax rate paid on international revenues could be reduced to 0%. A Tax Information Exchange Agreement exists between Canada and the Cayman Islands, which allows the Cayman Company to repatriate the profits back to the Canadian Parent Company tax Free.
IP Protection
Intellectual Property protection is becoming increasingly important to every business as a company’s IP represents the true assets of the company. The ideal scenario would be to hold the IP in a zero tax jurisdiction like Cayman which enables companies to license or sell products during the life of the company and be taxed at the Cayman rate of 0%. It is also important to note that Cayman companies do not pay capital gains or corporate taxes so when it comes time to sell the IP it will be taxed at 0%.
Maximize Valuation for Shareholders
Using a Cayman Islands structure is about reducing the overall amount of tax paid by company. Implementing a proper corporate tax structure for your international business through CEC, the company becomes more profitable now and throughout the life of the company by reducing the amount of tax paid from current levels to a lower percentage thus increasing shareholder value. Cayman Enterprise City works with tax advisories in Canada who assist Canadian tech companies with their global strategy and structuring.
If you have interest in meeting with Chris Morgan whilst he is in Ontario, please email: c.morgan@caymanenterprisecity.com or call: +1-345-945-3722 for more information or
www.CEC-Canada.com
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