Frequently Asked Questions (FAQs)

The commission was established in response to concerns about the effectiveness and fairness of Bermuda's tax structure. Its primary goal is to ensure that Bermuda's tax policies support economic growth, attract investment, and maintain the territory's competitiveness in the global market.

Members of the Bermuda Tax Reform Commission are appointed by the Minister of Finance, typically based on their expertise in taxation, economics, finance, and related fields. The appointments are made with the aim of ensuring a diverse and knowledgeable representation within the commission.

The commission's work encompasses a comprehensive review of Bermuda's existing tax policies across various sectors. This includes examining payroll tax, income tax, corporate tax, property tax (land & rental income tax), customs duties, goods and services tax (GST), and other forms of taxation to identify areas for reform and improvement in order to diversify Bermuda’s tax structure.

The difference between the 2023 Bermuda Tax Reform Commission and the 2018 Bermuda Tax Reform Commission is based on the changes in their mandates, composition, focus areas, and the context in which they operate. The 2018 commission’s mandate was formed under the 2017 Tax Reform Act to examine Bermuda’s tax system and determine any measures that may be taken to best enable a system of taxation and revenue collection that is equitable, effective, efficient, competitive and transparent; and to increase public sector revenue yield from 17% of GDP to a minimum of 20%-22% of GDP; and the 2023 Commission’s focus  is to look at the changes imperative to Bermuda’s existing system of domestic taxation to ensure it is in line with the requirements of the Global Minimum Tax while also examining what other changes to our local taxes are needed to ensure Bermuda’s economy remains competitive

The Bermuda Tax Reform Commission is a broader governmental entity tasked with conducting a comprehensive review of Bermuda's entire taxation system. Its scope encompasses various taxes, including income tax, corporate tax, payroll tax, property tax, customs duties, and other forms of taxation. The International Tax Working Group (ITWG) was established by the Minister of Finance to review recent international tax developments, including the global minimum tax and to make recommendations to Government on the way forward for Bermuda.  The ITWG delivered its Report in July 2023 and the Government determined to implement a Corporate Income Tax (CIT) for in scope companies. The ITWG continues to provide technical assistance on policy and legislative matters related to the CIT and international tax matters."

The primary objective of Organization for Economic Co-operation and Development (OECD) Pillar II is to establish a globally coordinated approach to ensure that multinational enterprises (MNEs) pay a minimum level of tax regardless of where they operate or where their profits are generated. This aims to address concerns about tax avoidance strategies employed by some MNEs to shift profits to low-tax jurisdictions, resulting in significant revenue losses for countries.

The Commission employs various methods to gather input from the public, including conducting public consultations, stakeholder meetings, town hall meetings, forums, surveys, feedback via the Commission’s website, and receiving written submissions. These avenues ensure that diverse perspectives from individuals, businesses, and organizations are considered in the reform process.

The commission examines a wide range of taxes, including direct taxes such as income tax and corporate tax, as well as indirect taxes like payroll tax, property tax, and consumption taxes. It evaluates the effectiveness and fairness of each tax type and considers potential reforms to optimize Bermuda's tax system.

While the Commission may make recommendations for tax reforms, the authority to implement these changes ultimately rests with the government. The Commission's role is advisory, and its recommendations are subject to government review and approval before being enacted into law.