• Bermuda Tax System

  • GENERAL

    Bermuda does not levy corporation tax.

  • TAX RESIDENCY

    Tax Residency

    A company is considered to be a tax resident of Bermuda if it is incorporated in Bermuda.

    Taxable Basis

    Not applicable since Bermuda does not levy corporation tax.

  • TAX ADMIN

    Taxable Period

    Not applicable since Bermuda does not levy corporation tax.

    Tax Returns

    There is no requirement for companies in Bermuda to file a tax return since Bermuda does not levy corporation tax.

    Tax Assessments

    Not applicable since Bermuda does not levy corporation tax.

  • CORPORATION TAX

    Corporation Tax

    Bermuda does not levy corporation tax.

  • DIVIDENDS

    Dividends from Foreign Investments

    Dividend income from foreign investments is not subject to corporation tax in Bermuda.

    Dividends from Local Investments

    Dividend income from local investments is not subject to corporation tax in Bermuda.

    Withholding Tax on Dividends

    There is no withholding tax on divided payments to local or foreign recipients.

  • INTEREST

    Interest Income

    Interest income is not taxable in Bermuda.

    Interest Expense Deductibility

    Interest expense is not tax deductible since interest income is not taxable.

    Withholding Tax on Interest

    There is no withholding tax on interest payments to local or foreign recipients.

  • ROYALTIES

    Royalty Income

    Royalty income is not taxable in Bermuda.

    Royalty Expense Deductibility

    Royalty expense is not tax deductible since royalty income is not taxable.

    Withholding Tax on Royalties

    There is no withholding tax on royalty payments to local or foreign recipients.

  • TAX LOSSES

    Ordinary Tax Losses

    Not applicable since there is no corporation tax in Bermuda.

    Group Relief

    Not applicable since there is no corporation tax in Bermuda.

  • CAPITAL GAINS

    Disposal of Shares by Foreign Shareholder

    The gain on the disposal of a Bermudian company by its foreign corporate shareholder is exempt from tax in Bermuda, unless the company holds Bermudian real estate in which case stamp duty applies.

    Capital Gains

    Capital gains are not taxable in Bermuda.

    Capital Losses

    Capital losses are not tax-deductible since capital gains are not taxable.

  • PARTNERSHIPS

    Partnership Profits

    Partnerships are treated as transparent entities for tax purposes, which means that their profits ate taxed directly in the hands of each partner.

  • BRANCHES

    Branch Profits

    A Branch is treated in the same manner as other types of companies in Bermuda.

    There is no remittance tax on profits transferred by a Bermudian Branch to its foreign head office.

  • STAMP DUTY

    Stamp Duty

    Stamp duty is levied only on transfers of real estate property situated in Bermuda.

  • CAPITAL DUTY

    Capital Duty

    There is no capital duty on the issue of shares in Bermuda.

  • VAT

    Bermuda does not levy VAT.

Compare Bermuda to other jurisdictions and see the difference in corporation tax rates, tax residency requirements, VAT rates, capital gain taxes, etc.

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