Bermuda Joins OECD ‘Inclusive Framework’

July 2, 2021 | 0 Comments

The Government of Bermuda has joined the statement on a new framework for international taxation arising from the OECD meeting of July 1, 2021.

Government Statement

A Government spokesperson said, “As a country committed to transparency, cooperation and high levels of compliance with international standards, the Government of Bermuda joined the Statement on a new framework for international taxation arising from the OECD [‘Inclusive Framework’] meeting of July 1, 2021, and looks forward to supporting its ongoing technical discussions ahead of the meeting of G20 Finance Ministers in October 2021.

“Bermuda has been actively involved in ongoing discussions relating to this initiative to present positions that reflect the national interest and that of our various stakeholders. As part of that approach, we recognised the need to join with other members of the Inclusive Framework to reach this position supported by a significant majority of the membership.”

Finance Minister Statement

Minister of Finance Curtis Dickinson said: “We fully intend to remain an active participant in the ongoing work of the Inclusive Framework to complete the development of an appropriate plan. We have noted areas of concern at a technical and practical level, which we look forward to working to resolve constructively in the months ahead.

“Financial services is a crucial area of focus for us, and the private sector, given our role as a global hub in key industries such as insurance/reinsurance. Businesses in this sector aid many of the world’s most vulnerable in adversity, and provide climate risk insurance which will be at the heart of making our planet sustainable.

“In relation to the former, Bermuda re/insurers have paid out more than a quarter of a trillion dollars over the past twenty years in claims arising from both natural and manmade disasters in the US and EU alone.”

“We remain committed to working collaboratively with partners in the public and private sector to maximise benefits which can be achieved as a result of this initiative.”

Extract Of OECD Statement 

A statement from the OEDC said, “130 countries and jurisdictions have joined a new two-pillar plan to reform international taxation rules and ensure that multinational enterprises pay a fair share of tax wherever they operate.

“130 countries and jurisdictions, representing more than 90% of global GDP, joined the Statement establishing a new framework for international tax reform. A small group of the Inclusive Framework’s 139 members have not yet joined the Statement at this time. The remaining elements of the framework, including the implementation plan, will be finalised in October.

“The framework updates key elements of the century-old international tax system, which is no longer fit for purpose in a globalised and digitalised 21st century economy.

“The two-pillar package – the outcome of negotiations coordinated by the OECD for much of the last decade – aims to ensure that large Multinational Enterprises (MNEs) pay tax where they operate and earn profits, while adding much-needed certainty and stability to the international tax system.”

The list of the Members of the OECDG20 Inclusive Framework follows below [PDF here]:

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