The Corporate Income Tax Act 2023 (the “Tax
Act”) imposes corporate income tax on certain
Bermuda-based entities. A short and high-level explanation of how
the Tax Act works is available here. There are specific provisions relating
to shipping companies established in Bermuda. Here is an overview
of how those specific provisions apply to shipping companies.
The initial taxing determination
You have determined that you have a shipping entity within a
“Bermuda Constituent Entity Group”, which itself is
within an “In Scope MNE Group” for the purposes of the
Tax Act. Furthermore, you have already made various adjustments to
the taxable income in accordance with Part 6 of the Tax Act. You
now need to make certain shipping specific adjustments to the
taxable income before you calculate the net taxable income and,
ultimately, the tax liability.
