Bermuda Corporate Income Tax Agency approved by House of Assembly

Bermuda Corporate Income Tax Agency approved by House of Assembly | Insurance Business Asia

Reinsurance

Bermuda Corporate Income Tax Agency approved by House of Assembly

New entity to administer and enforce the territory’s corporate income tax laws

Reinsurance

By
Kenneth Araullo

The Bermuda House of Assembly passed a bill to establish the Corporate Income Tax Agency (CITA), which will administer and enforce the territory’s corporate income tax laws enacted in 2023.

The bill will have its first reading in the Senate on July 24, according to the Bermuda Parliament clerk’s office. The proposal moved swiftly through the House, having been introduced on July 12, according to a report from AM Best.

If established, CITA will be governed by a board of directors, with day-to-day operations managed by a chief executive officer and their staff, according to a statement from the Bermuda Ministry of Finance. The agency will also handle disputes and issue non-oral determinations to clarify any uncertainties in the tax code.

CITA will also be required to produce an annual report for the finance minister, who will present it to the country’s legislature.

The bill also outlines the agency’s operations, including conflict-of-interest disclosures and funding mechanisms. Penalties for agency staff breaking confidentiality clauses include up to two years of jail time or fines. Company personnel failing to provide requested documents may face similar penalties.

In 2023, Bermuda enacted laws introducing a 15% corporate income tax, applicable only to large multinational companies with revenues exceeding €750 million ($817 million), according to the Bermuda Ministry of Finance. The new tax code is set to go into effect on Jan. 1, 2025.

Elsewhere in the island nation, Global Atlantic Re has expanded its support of the Bermuda Economic Development Corporation’s (BEDC) Wave of Opportunity Pitch Competition. The company has tripled its support of the BEDC’s annual pitch competition to $3 million.

The competition gives local entrepreneurs an avenue to pitch their business ideas in different categories for a chance to win $25,000 towards their project.

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