Bermuda Tax News 2025
January 2025The most important tax news in Bermuda for 2025 is undoubtedly the introduction of a 15% corporate income tax (CIT).
This is a monumental shift for the island nation, which has historically been a zero-tax jurisdiction for corporate income.
Here's a breakdown of the key aspects:
- What it is: Bermuda is implementing a 15% CIT for multinational enterprises (MNEs) with annual revenue of €750 million or more.
This aligns with the OECD's global minimum tax initiative, aiming to prevent tax avoidance by large multinational corporations.
- Why it's happening: This change is driven by international pressure to create a fairer global tax system and address concerns about profit shifting.
Bermuda's move ensures that large MNEs pay a minimum level of tax on their profits.
- Who it affects: The tax applies to Bermuda Constituent Entities (BCEs) that are part of multinational enterprise groups with annual revenue of €750 million or more.
- When it takes effect: The CIT is effective for tax years beginning on or after January 1, 2025.
- What businesses need to do: Businesses that fall under the scope of the new tax regime need to understand the regulations, ensure compliance, and potentially adjust their tax strategies.
Why this is the most important tax news:
- Major shift for Bermuda: This marks a significant departure from Bermuda's traditional tax-free status for corporations.
- Impact on large businesses: The tax will directly affect a substantial number of large multinational companies operating in Bermuda, particularly in sectors like insurance and reinsurance.
- Global implications: Bermuda's move aligns with international efforts to create a more equitable global tax system and could influence other jurisdictions.
It's crucial for businesses operating in Bermuda to stay informed about this change and seek professional advice to ensure they are prepared for the new tax regime.
Bermuda Budget 2022-2023
January 2022press here
Bermuda Tax Information Agreement
June 2013Bermuda and other British overseas territories signed in May a tax information sharing agreement aimed to expose bank clients hiding their money abroad.
The tax information would be shared with the UK, France, Germany, Italy and Spain.
Bermuda Tax news 2009
October 2009Bermuda France TIEA
Bermuda and France signed on October 8, 2009 a bilateral Tax Information Exchange Agreement, TIEA. The agreement relating to exchange of information on criminal and tax matters is the 16th TIEA agreement signed so far by Bermuda.The new TIEA follows OECD demand to jurisdictions to have 12 TIEAs to ensure listing on the "white list" of the OECD.
Bermuda has already joined the "white list" on June 2009, after signing its 12th TIEA with the Netherlands.
Bermuda's new TIEAs secure its position as a premier international financial center.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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