26 February 2024News

Business organisations throw support behind corporation tax

Bermuda’s leading business groups have thrown their support behind the Bermuda Government's plans to implement the Corporate Income Tax in 2025. 

The joint statement was issued by the Association of Bermuda Insurers and Reinsurers, Association of Bermuda International Companies, Bermuda Business Development Agency, Bermuda Chamber of Commerce and Bermuda International Long Term Insurers and Reinsurers. 

It celebrated the Government’s presentation of the first balanced Budget in over 20 years and the continuing consultative and transparent implementation of the corporation tax.

It said the moves supported "Bermuda’s brand as a compliant and transparent jurisdiction with a stable legal system that is more than 400 years old". 

"That brand has drawn Multinational Enterprise Groups to the island for decades," it said. "“It is why Bermuda is known as a leading international financial centre and a leader in financial services including insurance, reinsurance, captive insurance, insurance-linked securities, trusts and digital asset businesses. 

"Government and industry worked in close collaboration to frame the CIT and, against the backdrop of the new OECD international tax framework, we see the introduction of the CIT as a sensible initiative that will maintain Bermuda’s competitiveness and global leadership position.”

John M. Huff, ABIR CEO said: “ABIR and its member companies applaud the Bermuda government for achieving a balanced budget and protecting future generations from additional government debt. ABIR will continue to provide technical assistance to the government and further collaborate on the implementation of the Bermuda Corporate Income Tax Act of 2023 helping to establish job-creating ‘Qualified Refundable Tax Credits,’ efficient tax administration and fiscally responsible guardrails for expected, additional government revenue.”

Christine Patton, BILTIR executive director added: “BILTIR believes that the Bermuda Government’s introduction of the Corporate Income Tax is a reasonable response to the challenges of the OECD-sponsored new international tax framework, because it will ensure that taxes on Bermuda income stay in Bermuda, thereby allowing Bermuda to take aim at the cost of living and doing business in Bermuda.”

Patrick Tannock, Chairman of the Association of Bermuda International Companies and CEO of AXA XL Insurance in Bermuda said: “The ABIC Board and membership commend the Government on producing a balanced budget at a pivotal point on Bermuda’s path to economic renewal and future prosperity.

“ABIC is also encouraged by the Government’s willingness to collaborate and consult on the ramifications of the pending CIT, and we are confident that the Tax Reform Commission is taking a holistic look at Bermuda’s tax structure to ensure that the jurisdiction is as internationally cost competitive as possible.

“We look forward to continuing to work with Government and all stakeholders on this important national issue. The implications of the global minimum tax represent an inflection point where the need to work together has never been more critical for Bermuda to remain a domicile of choice.”

David Hart, CEO, Bermuda Business Development Agency said: “The BDA shares the sentiments expressed in the budget speech regarding a commitment to economic development, especially the importance of attracting foreign direct investment and creating employment opportunities in Bermuda.

“The positive news of a balanced budget sends a strong signal to overseas markets that Bermuda remains a premier domicile in which to invest. We also remain optimistic that Bermuda’s proposed corporate income tax, when implemented, will make Bermuda an even more attractive place to do business.”

Danielle Riviere, Bermuda Chamber of Commerce CEO said, “The Bermuda Chamber of Commerce commends the Bermuda Government’s landmark achievement towards a balanced budget and the planned 2025 introduction of the Corporate Income Tax. The implementation of the CIT reflects our island’s agility and visionary planning, securing our position as a favourable location for multinational corporations in compliance with the OECD’s latest tax guidelines. 

"We commend the collaborative spirit shown by the Government and industry peers in developing a tax framework aimed at strengthening Bermuda’s economic position and attracting further investments.”

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