Bermuda's zero percent corporate income tax rate and its status as an international financial center have made it an attractive destination for businesses seeking tax advantages. While businesses in Bermuda enjoy this tax benefit, they should be aware of other taxes such as payroll taxes, customs duty, property taxes, GST, and any specific municipal taxes imposed by local authorities. It is advisable to consult with a tax professional or refer to the official Bermuda Tax Authority website for the most accurate and updated information on tax regulations and requirements.
Corporate Income Tax:
Bermuda operates on a zero percent corporate income tax system, making it an attractive destination for businesses seeking tax advantages. There is no general corporate income tax on profits generated by businesses operating in Bermuda. This tax advantage is a significant factor in attracting international companies to establish a presence in the country.
Types of Business Taxes in Bermuda:
- Payroll Taxes: Businesses in Bermuda are subject to payroll taxes, which fund social insurance programs. Employers are required to contribute a percentage of their employees' remuneration towards social insurance, including health insurance and pensions. The specific rates and thresholds for payroll taxes can be obtained from the Bermuda Government's website or by consulting with a tax advisor.
- Customs Duty: Bermuda imposes customs duty on goods imported into the country. The duty rates vary depending on the type of goods being imported. Certain items, such as essential food items and prescription drugs, may be exempt from customs duty. The Bermuda Government's website provides detailed information on customs duty rates and exemptions.
- Property Taxes: Property taxes are levied on real estate properties in Bermuda. The tax rates are based on the annual rental value of the property. The Bermuda Government's website provides guidance on property tax calculations and payment procedures.
- Government Service Tax (GST): Bermuda introduced a Goods and Services Tax (GST) system on April 1, 2020. The standard GST rate is set at 0%. However, certain specific supplies and services, such as imported goods, accommodations, and vehicle rentals, are subject to GST at different rates. The Bermuda Government's website offers comprehensive information on GST regulations and requirements.
- Municipal Taxes: Municipalities in Bermuda have the authority to impose additional taxes on specific activities or services within their jurisdiction. These taxes may include local business taxes, licensing fees, or other charges. The specific rates and requirements for municipal taxes can be obtained from the relevant municipal authority.
Bermuda Tax Authority Website:
For detailed and up-to-date information on business taxes in Bermuda, it is recommended to visit the official website of the Bermuda Tax Authority. The website provides comprehensive information, forms, guidelines, and contact details for any tax-related inquiries.
Bermuda Tax Authority Website: Official Bermuda Tax Authority Website