A. Taxes payable
Federal taxes and levies
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:
US $ Equivalent
Up to 12,000
500,000,001 and above
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 $1,995.
Local companies (BD$)
Up to 50,000
500,000,001 and above
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
$2,905 in respect of each unit trust scheme managed by the company.
Sales tax/value added tax (VAT)
There are no sales taxes or value added taxes in Bermuda. Certain goods are subject to a customs duty which is payable upon entry in
B. Determination of taxable income
This is not applicable as there are no taxes on income.
C. Foreign tax relief
This is not applicable as there are no double taxation arrangements because there is no taxation on income in Bermuda.
D. Corporate groups
There is no group tax relief legislation as there are no taxes on income or capital gains.
E. Related party transactions
There is no transfer pricing or related party legislation in Bermuda.
F. Withholding tax
There are no withholding taxes in Bermuda.
G. Exchange control
Exempted companies which can be entirely beneficially owned by non-Bermudians and who trade or operate from Bermuda, but not in Bermuda,
are entirely exempt from any exchange controls. Exchange control regulations which have applied for some time to Bermudian local and/or
Bermudian owned companies, are now being dismantled.
H. Personal tax
There are no income taxes or capital gains taxes on individuals in Bermuda.
Both employers and employees are subject to payroll tax if they carry on a business or profession in or from Bermuda. Employers deduct the
employee's contributions from their salary. With some exceptions, the rates are as follows:
Employer has an annual payroll of:
BM$ to 200,000
over BM$ 1,000,000
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.
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.
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
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 |
Agreements in place?
|Argentina, Aruba, Australia, |
Canada, China, Czech Rep,
Denmark, Faroes, Finland,
Greenland, Iceland, India,
Ireland, Japan, Mexico, New
Norway, Sweden, UK, USA
22 April, 2012 -
Global Forum on
Information for Tax
Purposes Peer Review
This report assesses the
new exchange of
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
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
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.
|Last Updated: 30 April 2013