Frequently Asked Questions (FAQs)
To manage volatility in Corporate Income Tax (CIT) revenue and help with consistent government funding.
To reduce Bermuda’s $3.2 billion debt by 50% over 10 years, saving millions in interest annually.
A long-term strategic investment fund for infrastructure, economic resilience, and intergenerational equity.
To prioritize funding for essential programmes and ensure fiscal discipline amid revenue uncertainty.
We have not estimated CIT revenue. The Bermuda Government has published estimates of $187.5 million in 2025/26, rising to $600 million annually by 2026/27 and 2027/28.
By recommending progressive payroll tax reforms and targeted subsidies for low-income groups.
Subsidized Future Care premiums and home care support for low-income seniors.
Provision of basic Health Insurance Plan (HIP) coverage for unemployed or underemployed residents.
Refunds for health premiums exceeding a set percentage of household income for those earning under $72,000 annually.
It disproportionately affects Bermudians and local businesses and raises costs for imported goods and services.
Capped at 7%, with potential reduction to 5% based on CIT performance.
A 25% refund on standard premium rate contributions to reduce job costs.
Lower employment costs and targeted incentives encourage hiring and business expansion.
A refundable tax credit for companies increasing Bermuda-based employment and spending.
It’s Bermuda’s largest GDP contributor with strong local economic spillover effects. Our hope is that there is sufficient revenue to expand to other sectors.
A credit for utility companies investing in infrastructure, based on OECD substance rules.
Through a Housing Infrastructure Tax Credit to incentivize residential development.
A credit for R&D in areas like AI, fintech, climate modelling, and risk analytics.
They reduce long-term costs and support economic competitiveness.
Through CIT revenues, with phased implementation and payment caps.
A 25% credit for donors giving $100,000+ annually to Bermuda charities.
Nonprofits provide essential services and reduce pressure on government programmes.
Donors to registered Bermuda charities with audited financial statements and local impact. The Minister of Finance can expand the eligible pool.
Initially no, but future analysis may expand eligibility beyond cash donations.
As a refund or offset against taxes paid in the year of donation.
A credit structure that complies with Organisation for Economic Cooperation and Development (OECD) rules and avoids top-up tax penalties.
Likely by the Corporate Income Tax Agency, leveraging existing infrastructure.
Clear eligibility criteria, audit powers, and phased implementation to manage risk.
Our mandate included lowering living and business costs, so we recommended revenue allocations to offset expenses for individuals and businesses and to reduce the effect of government fees on consumers.
Hopefully yes, a new commission is recommended to support implementation of these recommendations, to analyze real CIT data, and to adapt to global tax rules evolution.
The TRC suggests exploring a low-rate, broad-based income tax system, pending data collection.