Video: Summary Of The 2017 Bermuda Budget

Introducing a new Financial Services Tax, payroll tax changes and adjustments to customs duties were a few of the financial initiatives revealed as Finance Minister Bob Richards delivered the 2017 Bermuda Budget in the House of Assembly this morning [Feb 24].

In addition, the maximum taxable salary level will be raised from $750,000 to $900,000, land taxes for this upcoming year will remain unchanged and  duty on cigarettes, tobacco, beer, wines and spirits will be raised.

In explaining the changes to the payroll tax system, the Minster said, “In the situation where an employer is currently passing on the maximum amount of 6% to an employee, an employee earning in the lowest band [1] will receive a tax cut of up to $600 p.a. in 2017/18.

“The next band [2] provides for a tax cut of $600 – $720. Band three provides for a tax decrease of $720 to an increase of $1,713. The top band provides for an increase of $1,713 to $29,000.”

The Government will also be introducing a new tax to be called the Financial Services Tax, which will be for banks, local insurance companies and Money Service Businesses.

“When applied to banks the tax will be calculated as 0.02% of assets,” the Minister said. “The tax as applied to local insurance companies will be a tax on gross premiums earned, excluding premiums from health insurance.

“The rate of tax will be 2.5% of non-health related gross premiums. Finally the rate of tax for the Money Service Businesses will be 5% on their aggregated incoming and outgoing transmission volume.”

A quick video overview of the budget is below, you can view our live updates of the Budget here, and all our coverage of the 2017 Budget here.

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