The government of Bermuda announced that it is considering introducing a corporate income tax for multinational enterprise groups (MNEs) with annual revenue of €750 million or more.
The proposed tax would be effective for 2025.
In a statement, the government said that the tax regime is necessary to comply with the Organisation for Economic Cooperation and Development’s (OECD) global minimum tax rules, which require companies to pay a minimum tax of 15 per cent in every jurisdiction in which they operate.
According to the statement, 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.
“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.”
Public consultation on the proposed tax regime began on August 8 and will end on September 8, 2023.
