Recent Updates On BVI, Cayman And Bermuda Laws

Bermuda – introduction of corporate income tax

The Bermuda Corporate Income Tax Act 2023 (Act) came into force on 1 January 2025. The Act introduces a corporate income tax (CIT) of 15%, aligning Bermuda with international tax standards, particularly the Organisation for Economic Co-operation and Development's Global Anti-Base Erosion Model Rules. While targeting multinational enterprises (MNEs) with substantial revenues, the legislation also seeks to balance Bermuda's economic appeal with compliance requirements.

CIT does not apply to all Bermuda entities. In-scope entities include (i) MNEs with consolidated annual revenues exceeding EUR 750 million in at least two of the preceding four fiscal years; and (ii) Bermuda tax resident entities and permanent establishments of non-resident entities operating within Bermuda. Entities such as investment funds, non-profits, pension funds, and certain insurance structures are excluded from the CIT regime. There are