Corporate tax framework goes before public
A “preliminary, high-level summary” of compliance rules for a landmark new tax that comes into effect next year has been published for feedback.
The first public consultation on the Corporate Income Tax is open until September 4.
Under legislation passed in 2023, the CIT will charge 15 per cent on the profits of multinational enterprises with more than €750 million (about $818 million) of annual revenue.
Specifically, it provides that Bermuda constituent entity groups, comprising one or more Bermuda constituent entities of an in-scope multinational group, are subject to the tax for fiscal years beginning on or after January 1, 2025.
David Burt, the Premier and finance minister, said: “We appreciate the feedback received from previous consultation periods, and directly from industry leaders, and I am confident that our new CIT regime represents an attractive path forward for Bermuda that is in line with international tax rules.”
Mr Burt said its administrative provisions “aim to balance effective tax collection with minimising administration and taxpayer compliance costs”.
He added: "The Government of Bermuda, through the Ministry of Finance, will continue to collaborate with all stakeholders to ensure that Bermuda remains an effective and co-operative partner in addressing global tax matters."
Details were posted on the government website.
Submissions received after the September 4 deadline may not be considered.
A second consultation has been proposed for later this year, with draft legislation incorporating feedback points.
Comments should be e-mailed to finance@gov.bm, and respondents should include “Corporate Income Tax Administration” in the subject line.
•To see the consultation document in full, see Related Media
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