Bermuda Introducing Corporate Income Tax For Multinational Enterprise Groups

At the end of December 2023, Bermuda's Parliament passed draft legislation for the implementation of the Corporate Income Tax (CIT), that would apply to Bermuda based businesses within Multinational Enterprises (MNEs) with annual revenue of €750M or more.

The CIT will be determined based on a tax rate of 15% (subject to reductions for foreign tax credits) and is expected to apply to tax years starting on or after 1 January 2025.

The version of the CIT passed is available here.

Importance of review

Bermuda based businesses that form part of MNE groups must now consider the full impact of this legislation and whether they should make elections contained within the new legislation.