Bermuda's Third Consultation On Corporate Income Tax Administration

On 17 February 2025, the Government of Bermuda released its third consultation paper on the Corporate Income Tax Act 2023 (CIT Act), focussing on provisions to ensure the effective administration of the CIT Act. This follows a careful review of feedback from the first two consultations, further refining the proposals to strike a balance between ease of administration and taxpayer compliance costs and robust tax collection and liability determination mechanisms. The consultation closes on 10 March 2025, and stakeholders are invited to submit their comments and suggestions via email.

The CIT Act applies to any entity incorporated, formed or organised in Bermuda or that has a permanent establishment in Bermuda, Bermuda Constituent Entities (BCEs), if that BCE is a member of an In Scope MNE Group (ie with respect to a fiscal year beginning on or after 1 January 2025, a group of entities related through ownership and control that has an annual revenue of €750 million