House Passes Corporate Income Tax Act

December 16, 2023 | 6 Comments

The House of Assembly has passed the Corporate Income Tax Act, “affecting Bermuda businesses that are part of Multinational Enterprise Groups [MNEs] with annual revenues of €750M or more.”

A Government spokesperson previously said, “The legislation is the result of multiple public consultations and direct engagement with key industry participants by the Government and its international tax advisers.

“Over 140 OECD member countries have agreed to make material changes to their tax regimes in accordance with the OECD’s Pillar II rules to incorporate a 15% minimum tax rate for in-scope MNEs wherever they operate, regardless of where they are domiciled.

“Bermuda’s CIT allows for flexibility in balancing international tax compliance with sound economic policy while maintaining the island’s standing as an attractive mid-shore home for a wide variety of MNEs including insurance and reinsurance companies, trusts, maritime enterprises and companies in other industries.

“The CIT will include Qualified Refundable Tax Credits [QRTCs] to be developed in 2024, incentivizing companies to support Bermuda residents through investments in key areas such as education, healthcare, housing, and other projects to help develop Bermuda’s workforce. Bermuda is advancing its CIT for implementation on January 1, 2025, and will continue to monitor further developments around the world as other jurisdictions address the OECD’s standards.”

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Comments (6)

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  1. Vote for me says:

    Burt showed his full arrogance in the HoA on Friday against any comments that he didn’t like, which included reference to the use of tax experts to help the Government. For every tax expert helping the Government there will be many more helping the companies to legally avoid the tax. Nothing new there. This will likely end up that Bermuda will receive little revenue, but a large expense in monitoring the tax returns. AS Governments love taxes it would not be surprising if over the years corporate tax drops all the way down to local companies.
    Time for Burt also to have some answers to basic questions, such as what is the expected tax revenue, how many companies will be affected, how many might leave or downsize.

  2. Steve says:

    Basically this tax revenue is to fund non essential overseas trips so our muppets can go shopping.

  3. Vox says:

    This is nothing short of catastrophic for the island.

    There is a huge chance that International Business will leave. I know the company I work for are looking to move to Dublin.

  4. Zero says:

    arrogant,disrespect are his only qualities. Oh and wish for total dictatorship go get em comrade burt

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