The Corporate Taxation Impact On Bermuda's ILS Sector

The Government of Bermuda recently announced the possible introduction of corporate income tax in Bermuda once it has conducted a series of consultations.

In this article, Sherman Taylor, Head of Capital Markets in Bermuda, sheds light on the recent corporate tax developments and its potential consequences for the insurance linked securities (ILS) sector if adopted.

What is the recent development regarding corporate tax in Bermuda?

In August 2023, Bermuda's Government opened up a public consultation paper, initiating a month-long public feedback period to consider the potential implementation of corporate taxation. Should this proposal become law, corporate tax would apply to Bermuda entities within an MNE Group.