BERMUDA
Bermuda House Approves Creation of Corporate Tax Agency

• By Steve Hallo
• July 22, 2024 04:17 PM (EDT)

    

HAMILTON, Bermuda //BestWire// - On July 19, the Bermuda House of Assembly passed a bill that would establish the Corporate Income Tax Agency, which would administer and enforce the territory's corporate income tax laws that were enacted in 2023.

The bill will have its first reading in the Senate on July 24, according to the Bermuda Parliament clerk’s office. A transcript of the proceedings and debates surrounding the bill was not available. The proposal moved swiftly through the House, having been introduced on July 12 ( BestWire, July 18, 2024). 

If established, CITA would be governed by a board of directors, and day-to-day operations would be handled by a chief executive officer and their staff, according to a statement from the Bermuda Ministry of Finance. The agency would also settle disputes and issue non-oral determinations to clear up any uncertainty in the code.

Additionally, CITA would be required to produce an annual report for the finance minister, who would in turn present it to the country’s legislature.

Other portions of the bill lay out how the agency should operate, including details regarding conflict-of-interest disclosures and funding mechanisms. The bill also sets penalties, including jail time, for any agency staff found guilty of breaking confidentiality clauses in the proposed law. Up to two years of jail time or fines are also on the table for company personnel failing to provide documents requested by the agency.

In 2023, Bermuda passed laws that will introduce a 15% corporate income tax, which will only apply to large, multinational companies with revenues that exceed €750 million ($817 million), according to the Bermuda Ministry of Finance.

The new tax code goes into effect Jan. 1, 2025.

Federal Legislation Bermuda Taxation