Bermuda's Proposed Corporate Income Tax: A Comprehensive Guide
Introduction
Bermuda's Ministry of Finance has recently released a public consultation paper on the administrative framework for the proposed Corporate Income Tax (CIT). The proposed CIT will apply to Bermuda businesses that are part of a multinational enterprise group and have a certain level of revenue.
Key Features of the Proposed CIT
- The CIT rate will be 15%. - The CIT will be based on a modified gross income calculation. - The CIT will be administered by the Bermuda Tax Authority. - The CIT will be phased in over a period of three years.
Implications of the Proposed CIT
The proposed CIT will have a significant impact on Bermuda's business community. Businesses will need to carefully consider the implications of the CIT and how it will affect their operations.
Next Steps
The public consultation period for the proposed CIT will close on October 5, 2023. The Bermuda Tax Authority will then review the feedback received and make any necessary changes to the proposed legislation.
Conclusion
The proposed CIT is a significant development for Bermuda's business community. Businesses should carefully consider the implications of the CIT and how it will affect their operations. The public consultation period is an opportunity for businesses to provide feedback on the proposed CIT and to help shape the final legislation.
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