BERMUDA
KnowYourCountry
A.        Taxes payable

Federal taxes and levies

Company tax

Companies incorporated in Bermuda are either local companies, of which 60% of ownership and directors must be Bermudian, or exempted
companies which can be entirely owned by non-Bermudians and which companies are also exempt from any exchange controls.

Bermuda companies pay no tax on income or capital gains.

All companies are subject to annual company fees, based on share capital levels as follows:

Exempted companies
Fee
US $ Equivalent
US $
Up to 12,000
1,995
12,001–120,000
4,070
120,001–1,200,000
6,275
1,200,001–12,000,000
8,360
12,000,001–100,000,000
10,455
100,000,001–500,000,000
18,670
500,000,001 and above
31,120

Where the exempted company's business includes the management of any unit trust scheme, the fee will be US $2,905 in respect of each unit
trust scheme managed by the company.

Where the exempted company is one limited by guarantee, but is not a mutual company, the fee will be US $1,995.

Local companies (BD$)
BD$
Up to 50,000
650
50,000–250,000
970
250,000–500,000
1,620
500,000–1,000,000
3,225
1,000,000–5,000,000
6,445
5,000,000–10,000,000
12,275
500,000,001 and above
18,410

Capital gains tax

There is no capital gains tax in Bermuda.

Branch profits tax

There is no branch profits tax in Bermuda. Non-Bermudian companies who wish to establish a place of business in Bermuda will require a permit
to do so and the company will then be subject to an annual company fee which is currently US $1,995 for general companies. Where the
company's principal business is raising money from the public by the issue of bonds or other securities or insurance business or open-ended
mutual fund business, the fee is US $4,125. If the business of the company includes the management of any unit trust scheme, the fee is US
$2,905 in respect of each unit trust scheme managed by the company.

Sales tax/value added tax (VAT)

There are no sales taxes or value added taxes in Bermuda.  Certain goods are subject to a customs duty which is payable upon entry in
Bermuda.   

B.        Determination of taxable income
This is not applicable as there are no taxes on income.

C.        Foreign tax relief
This is not applicable as there are no double taxation arrangements because there is no taxation on income in Bermuda.

D.        Corporate groups
There is no group tax relief legislation as there are no taxes on income or capital gains.

E.        Related party transactions
There is no transfer pricing or related party legislation in Bermuda.

F.        Withholding tax
There are no withholding taxes in Bermuda.

G.        Exchange control
Exempted companies which can be entirely beneficially owned by non-Bermudians and who trade or operate from Bermuda, but not in Bermuda,
are entirely exempt from any exchange controls. Exchange control regulations which have applied for some time to Bermudian local and/or
Bermudian owned companies, are now being dismantled.

H.        Personal tax
There are no income taxes or capital gains taxes on individuals in Bermuda.

Payroll tax
Both employers and employees are subject to payroll tax if they carry on a business or profession in or from Bermuda. Employers deduct the
employee's contributions from their salary. With some exceptions, the rates are as follows:

Tax rate
Employer has an annual payroll of:        

BM$ to 200,000
7.25%

BM$ 200,000–500,000
10.75%

BM$ 500,001–1,000,000
12.75%

over BM$ 1,000,000
14.00%

Exempt undertakings
14.00%

Provided an employee is on the payroll at the end of the tax period and worked for the employer for at least 180 hours during the quarter, a
special relief is available in respect of that employee, equal to BM$ 600 per employee per quarter. The payroll tax payable in respect of that
employee must not be less than 5.75% of their gross remuneration.

I.        Treaty and non-treaty withholding tax rates

No withholding tax is payable in Bermuda.

_________________________________________________________________________________________________________________
           
Member Firm
 
City
Name
Contact Information
Hamilton
Dudley R Cottingham
292 7478
drc@cml.bm
Since 1994, the PKF network of independent member firms, which is administered by
PKF International Limited, has produced the PKF Worldwide Tax Guide (WWTG). The
report below is extracted from the 2012 WWTG and reproduced with the kind permission of
PKF International Limited. Before continuing, please read the Important Disclaimer below.

________________________________________________________________________

IMPORTANT DISCLAIMER:

This report should not be regarded as offering a complete explanation of the taxation matters that are
contained within this report.

This report has been made available on the express terms and understanding that the publishers and the
authors are not responsible for the results of any actions which are undertaken on the basis of the
information which is contained within this report, nor for any error in, or omission from, this report.

The publishers and the authors expressly disclaim all and any liability and responsibility to any person,
entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of
the contents of this report.

Accordingly no person, entity or corporation should act or rely upon any matter or information as contained
or implied within this report without first obtaining advice from an appropriately qualified professional
person or firm of advisors, and ensuring that such advice specifically relates to their particular
circumstances.

PKF International is a network of legally independent member firms administered by PKF International
Limited (PKFI). Neither PKFI nor the member firms of the network generally accept any responsibility or
liability for the actions or inactions on the part of any individual member firm or firms.

________________________________________________________________________
Bilateral
exchange of
information
Agreements
in place?
Argentina, Aruba, Australia, Canada,
China, Czech Rep, Denmark, Faroes,
Finland, France, Germany,
Greenland, Iceland, India, Ireland,
Japan, Mexico, New Zealand,
Netherlands, Netherlands Antilles,
Norway, Sweden, UK, USA
Local AML News / Sanctions
Tax Information
22 April, 2012  -  
Global Forum on
Transparency and
Exchange of
Information for Tax
Purposes Peer
Review

Key Findings:

This report assesses
the new exchange of
information
instruments signed by
Bermuda as well as
steps it has taken to
clarify existing
agreements and some
legislative
amendments. As of
January 2012,
Bermuda has 30 EOI
agreements, 20 of
which are in force, the
large majority of which
are in line with the
international standard.
Bermuda has passed
legislation to ensure
that search and
seizure powers are
available to obtain
information requested
by  its EOI partners.
Bermuda is
encouraged to
continue to review and
update its legal and
regulatory framework
in line with the
remaining
recommendations
made in the 2010
Report, particularly as
concerns the
availability of
ownership and
accounting
information. All further
developments in the
legal and regulatory
framework, as well as
the application of its
framework in practice,
will be considered in
detail in the Phase 2
Peer Review which is
scheduled to
commence in the
second half of 2012.

Read Review
Last Updated:   30 April 2013