David Burt, the Premier, signed tax deal with US (Photograph by Akil Simmons)
The Bermuda Government has signed an important tax agreement with the United States.
The Country by Country Competent Authority Agreement signifies that the Government has satisfied the Internal Revenue Services’ (IRS) data safeguards review and complies with the Organization for Economic Co-Operation and Development Base Erosion and Profit Shifting tax transparency standards.
Under this agreement Bermuda now automatically provides corporate income of Bermuda based multinational enterprises that have any US income-generating activities.
“The agreement we have put in place with the United States demonstrates Bermuda’s continued commitment to being transparent, co-operative and compliant with international tax authorities,” said David Burt, the Premier.
“As a leading jurisdiction in global tax transparency we will continue, without reservation, to show that Bermuda is no place to hide money. We stand by our call for other countries to meet the Bermuda Standard.”
The agreement complements Bermuda’s other automatic exchange of information agreement with the USA, which was signed on December 19, 2013 that provides income information on US taxpayers under the Foreign Account Tax Compliance Act.
It is also consistent with an agreement signed earlier this month between Bermuda and the United Kingdom.
The UK agreement, like the US agreement, enables the automatic reporting of corporate income on a country by country basis for UK tax enforcement purposes. Bermuda is the first UK Overseas Territory to sign a CbC Competent Authority Agreement with the UK and now also with the USA.
