➢ Proposed New Tax Regime Would Reinforce Bermuda’s Continuing Commitment to Global Compliance and Transparency
➢ Proposed Tax Regime Developed to Support Bermuda’s Economic Goals
➢ Begins an Initial Public Consultation Period for New Corporate Income Regime
Today (August 8, 2023), the Government of Bermuda announced that it will issue a public consultation paper as part of its considerations on introducing a corporate income tax to apply to Bermuda businesses that are part of Multinational Enterprise Groups (MNEs) with annual revenue of €750M or more.
The proposed corporate tax would be expected to be effective for 2025.
To allow interested parties to offer
comments on the proposed tax regime, the Government of Bermuda is opening the first of a series of consultation periods. This first consultation will end on September 8.
Bermuda is considering a corporate income tax that would be taken into account in calculating the effective tax rate of Bermuda businesses under the Organization for Economic Cooperation and Development’s (OECD) global minimum tax rules. These rules require companies in scope to pay a minimum tax of 15 % in every jurisdiction in which they operate.
The taxes paid under the proposed Bermuda corporate income tax regime would be those which would be payable to other jurisdictions under the global minimum tax framework. Any new corporate income tax adopted would also include certain tax credits which support Bermuda’s economic goals and maintains Bermuda’s global attractiveness. In addition, the Tax Reform Commission will examine the possibility of restructuring the island’s existing tax regimes as a means of lowering the cost of living and doing business in Bermuda.
Bermuda is recognized for its commitment to global compliance and transparency and is considered by
the EU to be a fully cooperative tax jurisdiction. Bermuda currently has 41 bilateral Tax Information Exchange Agreements (TIEAs) and more than 125 multilateral treaty partners. The Government believes this proposed tax regime is supportive of Bermuda’s status as a leading international financial centre.
Bermuda plans to continue to invest in key policy initiatives including reduction in the cost of living, job creation, and other programs to stimulate the economy and enhance its attractiveness to MNEs.
“Our approach is to use tax reform to bolster policy initiatives that will enhance Bermuda’s economic
growth prospects,” said Premier and Finance Minister David Burt. “The Government continues to guide
Bermuda to sustainable economic growth and development. We must attract and retain business in
Bermuda, boost foreign investment, increase employment opportunities while expanding the workforce,
and build our local economy to its fullest potential.
“These efforts will further our policies to make our island a better place to live and work. To assist in the appropriate policy development it is critical that organisations and individuals provide feedback on the matters addressed in the public consultation document.”
As noted, the initial consultation period begins on August 8, 2023.
All comments should be submitted prior to the deadline of September 8, 2023.
For more information visit: https://www.gov.bm/ or www.forum.gov.bm to review the consultation document.
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