Tax Country Guide: Bermuda
Published date | 28 June 2022 |
Subject Matter | Tax, Income Tax, Capital Gains Tax, Withholding Tax |
Law Firm | Appleby |
Author | Mr Jerome Wilson and Ashley Bento |
Bloomberg Tax Country Guides provide overviews of the tax regimes of more than 200 jurisdictions. The Country Guides are continuously updated to reflect developments as they happen. Written by local experts, each jurisdiction profile covers corporate taxation, personal taxation and social security, transfer pricing and anti-avoidance rules, important miscellaneous taxes, and any special tax regimes applicable to the oil, gas, mining, and banking sectors.
1. OVERVIEW
1.1. Government and Tax System
Bermuda is the oldest self-governing overseas territory of the United Kingdom, with a local democratically elected government responsible for internal affairs, and the U.K. retaining responsibility for external affairs, defense, and security.
Bermuda's economy is primarily based on international business and the provision of financial services to that sector, and, to a lesser extent, tourism. As a jurisdiction, it ranks in the top three global re-insurance markets and has been a leader as a captive and non-captive insurance domicile since the 1950s.
In recent years Bermuda has witnessed an emerging trend of 'special purpose insurers' forming and the development of the 'cat bond' (catastrophe bond) market. Following the introduction of legislation initiated by the Bermuda Monetary Authority, Bermuda's flexible regulatory regime has allowed the cat bond market to rapidly grow to represent a substantial portion of the value in the global market.
Bermuda is also renowned for providing international companies and high net worth families with the highest level of financial, administrative, trust, and fiduciary services. Bermuda is a democratic, politically stable, highly developed, and well-regulated offshore jurisdiction that has a reliable and capable judicial system with the benefit of the Privy Council in London as its highest court of appeal. Bermuda's legal framework is comprised of local legislation, regulation, and case law. Case law of other commonwealth jurisdictions, while not binding, may also be given consideration by a Bermudian court in particular circumstances.
Bermuda does not tax personal income, corporate income, or capital gains. Government revenue is raised through a variety of measures including, but not limited to, payroll tax, customs duty, stamp duty, land tax, passenger tax, corporate registration fees, permit fees, and license fees.
1.2. Currency
Bermuda's currency is the Bermudian dollar.
2. CORPORATE TAX
2.1. Residence
There are no income or...
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