The Government of Bermuda is introducing a Corporate Income Tax (CIT) to apply to Bermuda businesses that are part of Multinational Enterprise Groups (MNEs) with annual revenue of €750M or more. The proposed CIT is expected to take effect in January 2025.
As part of the new CIT regime, the Government of Bermuda intends to introduce certain tax credits to support Bermuda's economic goals and maintain the global attractiveness of the jurisdiction. In parallel, the Tax Reform Commission will analyze Bermuda's existing tax regimes and consider potential restructuring alternatives with the goal of reducing the cost of living and doing business on the island.
The introduction of the CIT will only apply to large multinational corporations and fulfills Bermuda's commitment to participate in the Global Minimum Tax initiative being implemented around the world.
Bermuda is recognized for its commitment to global compliance and transparency and is considered by the European Union to be a fully cooperative tax jurisdiction. Bermuda currently has 41 bilateral Tax Information Exchange Agreements (TIEAs) and more than 125 multilateral treaty partners. The proposed CIT is supportive of Bermuda’s status as a leading international financial centre.