Bermuda To Create Corporate Income Tax Agency

Bermuda, known for its thriving offshore finance industry, has taken a significant step in modernizing its tax infrastructure with the proposed establishment of a Corporate Income Tax Agency (the "Agency") to support the Corporate Income Tax Act 2023 (the "Act") that was enacted in December 2023 and which is scheduled to come into effect in January 2025. This initiative marks a pivotal moment in Bermuda's economic history, reflecting its commitment to greater transparency and alignment with global tax standards.

The purpose of the Agency will be to administer the corporate income tax laws and to exercise the powers that are conferred under Section 3 of the Act. To be called the Corporate Income Tax Agency Act, 2024 (the "Agency Act") this new piece of legislation will see the formation of the Agency as a body corporate with perpetual succession, financed in part by grants provided by the government. The Agency will act as an agent of the Crown and will be subject