New Tax Agreements: Turkey & Korea

January 23, 2012

[Updated] Bermuda today [Jan. 23] signed Tax Information Exchange Agreements [TIEA] with both Turkey and the Republic of Korea.

The agreement was sıgned by Mehmet Kilci, Presıdent of Revenue Admınıstratıon for Turkey and Premier and Finance Minister Paula Cox.

A Government spokesman said the TIEA provides a full exchange of informatıon on crımınal and legal tax matters between Bermuda and Turkey and is an ımportant step ın reinforcing the committment of both countries to the internationally agreed tax standard.

Upon entry into force of thıs agreement, ınformatıon relatıng to dırect taxes of every kınd and descrıptıon needed by the tax audıtors of one country can be requested from the competent authorıty of the other country. Also, thıs agreement provıdes an opportunıty for the representatıves of the two countrıes to make tax examınatıon, contact wıth the related persons, and attend a tax examınatıon carrıed out ın the other state.

A special arrangement was placed in the Turkish Corporate Tax Law in order to combat with tax evasion.

According to this provision, every kind of payment made in cash or accrued on account to corporations resident or operating in the countries to be announced by the council of ministers will be subject to 30 percent withholding tax regardless of whether those corporations are taxpayers or not, or whether those payments are taxable or not.

Because of the fact that thıs agreement between Turkey and Bermuda wıll provıde these two countrıes wıth effectıve exchange of ınformatıon, the mentıoned provısıon ın our domestıc law prescrıbıng a heavıer duty shall not be ımplemented for Bermuda.

Premier Cox stated, “I am pleased with the TIEA’s effect on Turkish corporate law as it relates to Bermudian entities doing business in Turkey.”

Brad Kading, president of the Association of Bermuda Insurers & Reinsurers — the local industry’s public policy arm — commented, “We are pleased at Bermuda’s accomplishments of signing a TIEA with the Government of Turkey. Turkey is an
important G20 nation with a growing economy and a gateway to other emerging markets.”

Update 7.00pm: The Premier announced that Bermuda also signed an agreement with Republic of Korea today. The Tax Agreement was signed at the Korean Mission in New York. Signing for the Republic of Korea was Ambassador Sook Kim Permanent Representative to the United Nations [UN].

Bermuda has signed 32 Tax Agreements of which 15 Tax Agreements are with members of the G20.

Premier Cox said, “The value of signing this Tax Agreement is twofold as we see this agreement as enhancing opportunities for future foreign direct investment between our two countries in cementing the relationship between Bermuda and Korea, and this Tax Agreement acts as a proactive pre-emptive measure as Bermuda will be exempt from any future legislative measures.

“Bermuda’s treaty with Korea is another example of Bermuda moving swiftly to expand upon our role in the global financial network, to strengthen and deepen our relationships with other financial centres.”

George Hutchings, chairman of ABIC praised Bermuda’s achievement, “The signing of the TIEA with Korea will provide significant protection for companies and individuals in Bermuda from any potential counter measures Korea may introduce against countries that do not meet accepted transparency standards.

“Korea is fast becoming an economic powerhouse in the global economic landscape and the signing of the TIEA with Korea represents substantial progress. The Ministry deserves congratulations on its continuing efforts on behalf of the Bermuda, its residents and the companies that operate here.”

Cheryl Packwood, Chief Executive Officer [CEO] of Business Bermuda said, “Korea is one of the world’s fastest growing and most robust economies.

“Reaching this agreement is yet another example of Bermuda’s ability to work with other countries to establish a mutual understanding of our tax and regulatory approaches and reach agreements that will ensure greater cooperation and enhanced international business opportunities for our two countries working together.

“We have tremendous respect for Korea and its business community and are hopeful that this agreement establishes a foundation for additional cooperation and economic progress.”

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Comments (6)

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  1. Legal Reasons? says:

    the Premier takes time to review and sign documents and meet with foreign officials for a tax treaty with TURKEY (oh! no doubt that we do a lot of business there!?), yet she cannot find time for similar activities with the BERMUDA GOVERNMENT AUDIT COMMITTEE.

    Premier, where are your priorities?!?!

    • PEPPER says:

      Lord. this Premier is all about a
      tax treaty with countries that do not mean crap to us .
      Premier Cox is so much like our former premier. he was a B.S. artist and so is she.
      I hope the hell that our auditor general is paying attention.

  2. Family Man says:

    She’s desperately trying to keep all her turds buried. There won’t be any time to meet until AFTER the election.

    The auditor should just leak the reports to Wikileaks anyway.

  3. sharky says:

    Wow,thank goodness those critical treaties with Turkey were signed.Now we can have fresh gobblers at Christmas and Thanksgiving.
    Meanwhile back at the ranch we have over 100 apartments empty and no lines at all at Gorhams on a Saturday morning.
    We’re doomed and bamboozled !!

  4. navin johnson says:

    you must understand that the Sheeple eat this stuff up…Turkey, Korea what no Burkina Faso? what’s up with that?

  5. Think About It says:

    Does no one else think that it is a conflict of interest for the Premier to still hold her position as the head of finance? I mean if she wants to bullsh*t and waste money, there is no one to really stop her as she is the finance minister.