Ministry Releases FAQs On Income Tax Act
The Ministry of Finance of the Government of Bermuda has published Frequently Asked Questions [FAQs] with respect to the Corporate Income Tax Act 2023.
A Government spokesperson said, “The purpose of the FAQs is to assist entities in determining if and when they are within the scope of the corporate income tax [CIT], and to provide additional information on certain provisions of the Act, which will affect Bermuda businesses that are part of Multinational Enterprise Groups [MNEs] with annual revenues of €750M or more.
“Over 140 Organization for Economic Cooperation and Development [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% global minimum tax for in-scope MNEs wherever they operate, regardless of where they are domiciled.”
The full Corporate Income Tax FAQs follows below [PDF here]:
Is it not amazing that for two weeks in the HoA the Premier and Minister of Finance could not answer a single relevant question on the Act. But as he departs Bermuda (again) he releases a 45 page tome on useless drivel allegedly about “Frequently Asked Questions”. None of which were the questions asked in the HoA or by those interviewing the Government ‘sources’ Do you really wonder what the Burt administration thinks of the dumb electorate? Exhibit A.
Gov’t slapped tax on Companies years ago and many left leaving many unemployed. Are they looking to do the same this time round or closing doors of small business and again causing unemployment, more homeless and confusion on families..Children are always caught in the middle of decisions made from the top down. How much will MP’S award themselves in April for doing much damage to our home?
Let’s do a Business 101 reality check.
If IB has to pay a 15% tax or any new major tax, IB will reduce spending in other areas to make up for the loss. A few options are: less hiring, smaller raises (if any), smaller bonuses (if any), redomicile on paper, or moving the office out of Bermuda leaving Bermudians unemployed.