An independent fund derived from excess corporate income tax revenues would be invested in infrastructure and public services, the Premier said.

David Burt added that the sovereign wealth fund would also help cut Bermuda’s national debt and create a stronger economy.

At a briefing on the 2025 Speech from the Throne, he said that the fund would be managed by an independent committee and the Government would examine the recommendations of a report from the Tax Reform Commission as it set up the fund.

The Premier explained: “The introduction of corporate income tax represents a significant shift in Bermuda’s tax structure and it is critical that these funds are managed prudently.

“The Government will establish a sovereign wealth fund, an independent body that will invest excess proceeds from CIT to benefit future generations of Bermudians.

“This fund will allow for strategic investments in infrastructure and public services while supporting the reduction of Bermuda’s national debt over time, creating a stronger, more stable financial foundation for the country.”

He added: “As Bermuda is moving from a place of budget deficits to expected budget surpluses, we are now going to need to look at how we manage the Sinking Fund and the Government Loans Act.”

Mr Burt said that the Sovereign Wealth Fund would “deal with how we manage these excess revenues in the future”.

He noted that the Government would implement the recommendations of the Tax Reform Commission so that the burden of taxation remained fair and balanced, particularly as new revenues from CIT were incorporated into Bermuda’s long-term financial planning.

The Premier added: “These reforms are key to ensuring that the Government has the necessary fiscal guardrails in place to protect our economy while making Bermuda’s tax system more equitable.”

Last December, the Bermuda Fiscal Responsibility Panel, in an annual assessment, recommended “substantial modifications” of the island’s existing fiscal framework.

The organisation said that this was in light of the potential additional revenues that were expected to be generated by CIT.

Among its recommendations, the panel suggested the creation of a Sovereign Wealth Fund to make investments in “longer-term, less liquid assets” for the benefit of future Bermudians.

As is the case in Ireland, the panel said, CIT revenues should be reported clearly and transparently and clearly delineated from other government revenue sources.

It recommended that CIT revenues be allocated to repaying the island’s outstanding long-term debt obligations and capital spending, subject to an assessment of capital needs and prevailing macroeconomic conditions.

The panel said the latter was to avoid “inflationary overheating associated with large increases in capital spending”.

Last week, Mervyn Skeet, the chief executive of the Bermuda Corporate Income Tax Agency, said works were progressing to fine-tune the CIT regime through the enactment of requisite legislation.

While addressing delegates attending the fourth annual Bermuda Risk Summit 2025, hosted by the Bermuda Business Development Agency, Mr Skeet said the main focus of the agency was to ensure the legislation was “very clear”.

He added: “Also, there is expected to be further legislation later in the year around tax credits — that certainly will be led by the Ministry of Finance and the agency will play a part.”

The Corporate Income Tax Act 2023, which took effect this year, charges 15 per cent on the profits of multinational enterprises with more than €750 million (about $820 million) of revenue annually.

The Government said 140 member countries of the Organisation for Economic Co-operation and Development had signed up to the change, which it said would level the tax playing field globally.