Bermuda has concluded negotiations of a tax information exchange agreement (TIEA) with the Republic of South Africa that will be signed later this year.

Finance Minister Paula Cox announced the news in the House of Assembly on Friday and said the agreement would provide for a full exchange of information on criminal and civil tax matters between the two countries.

"The conclusion of negotiations of a TIEA with South Africa marks a milestone, as it is the first TIEA negotiation concluded with a country in Africa," Ms Cox said.

"South Africa is one of the founding members of the African Union, and has the largest economy of all the members. It is also a member of the G20."

She added that broadening the political and economic relations between the two countries would be an ongoing process. On the agenda were clarification of elements of double taxation, discrimination and other undesired tax barriers, and investment protection.

"When the TIEA is signed, South Africa has kindly proposed a Joint Declaration that includes the Government of the South Africa welcoming Bermuda as a member of the community of nations committed to international cooperation and information exchange on tax matters, and affirms that Bermuda will be treated accordingly by the South African authorities," Ms Cox said.

"For its part Bermuda fully acknowledges the mutual ob"For its part Bermuda fully acknowledges the mutual obligations created by the Agreement. The Agreement includes an undertaking from South Africa that Bermuda will not be impaired by prejudicial measures."

Bradley Kading, president of the Association of Business Insurers and Reinsurers (ABIR), said South Africa "serves as a business centre for the southern half of the continent. Bermuda builds credibility for the jurisdiction by reaching out to both the developed and developing world on tax co-operation and information sharing."

Cheryl Packwood, CEO of Business Bermuda said: "South Africa is a remarkable success story. There is so much potential on the African continent and this is truly only a beginning to a true partnership that will lead to further growth and development for Bermuda and Africa."

Bermuda currently has 19 signed TIEAs.