Page 56 - Caribbean-Central America Profile 2018

BERMUDA

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

Official Name: Bermuda
Capital: Hamilton
Nationality: Bermudian(s)
BERMUDA Official Language: English

Population Total (millions): 0.07 ( 2016 est.)
Size: 20.6 square miles
Currency: Bermuda Dollar (BMD)
Internet Domain: .bm
International Dialling Code: +1 441
Electricity: 110 volts / 60 cycles

COUNTRY OVERVIEW INVESTMENT INCENTIVES
q Bermuda consists of a chain of coral Bermuda has one of the world’s most prosperous economies, with a reputation for high quality
islands and islets international business transactions and the highest regulatory standards. The local banks offer full
international banking, investment and fiduciary services. Its unique geographic location allows for
q Its coastlines are characterized by full access to North American and European markets.
small bays
Bermuda enacted the Investment Business Act (IBA) in 1998 to regulate the island’s financial
q The beaches are of fine pale pink services industry and to further refine its terms the Investment Business Act 2003 was passed. The
coral sand and surrounding blue- act creates a balance between government regulation on the one hand and the competitive needs
green waters of Bermuda’s most important industry, international business on the other hand.
q The capital is Hamilton. The Investment Funds Act 2006 provides the statutory basis for regulating funds in Bermuda.
Bermuda fosters a collaborative business This Act deals with the establishment, operation and regulation of mutual funds, unit trusts and
culture that sees government, industry partnership funds.
and regulators working together for The Import Duties Act and the Export Duties Act allow the Government to waive import and export
the jurisdiction’s commercial success. duties for activities that bring benefit to the country’s economy. In practice substantial benefits can
Bermuda is an ideal environment for often be negotiated. Bermuda has a long established “Know Your Customer” philosophy.
business. It boasts excellent fiber optic
connections, a robust IT, legal and TAXES
regulatory framework, and significant Bermuda does not impose an income tax, but rather assesses a Payroll Tax on Employers per
access to capital for investment and the Payroll Tax Act of 1995. Effective April 01, 2017, Payroll Tax is levied on every employer
expansion. and self-employed person at progressive rates on total remuneration paid, up to a maximum of
$900,000 of remuneration per annum per person. Under certain circumstances, employers will
Top international service-providers have recover a portion of the Payroll Tax from employees.
created a workforce of experienced,
internationally trained and qualified There are no taxes on profits, income or dividends, nor is there any capital gains tax, estate duty or
professionals. Notably, the island is the death duty. Profits can be accumulated and it is not obligatory to pay dividends.
world’s largest captive domicile, one of The Bermuda Government has passed legislation whereby the Minister is authorised to give an
the top three reinsurance centres, and the assurance to an exempted company, permit company, exempted partnership or exempted unit
leading market for property catastrophe trust scheme that “in the event of there being enacted in these Islands any legislation imposing
insurance and insurance-linked tax computed on profits or income or computed on any capital asset, gain or appreciation, then
securities. Bermuda has created a highly the imposition of any such tax shall not be applicable to such entities or any of their operations”.
respected and successful financial centre
recognised for worldwide standards of In addition, there may be included an assurance that any such tax “and any tax in the nature of
compliance, regulation, transparency and estate duty or inheritance tax, shall not be applicable to the shares, debentures or other obligations”
infrastructure. With over 100 tax-treaty of such entities.
partners around the world, Bermuda
is rated a first-class domicile by the The only “tax” imposed on an exempted company (so long as it does not have an office with
Organisation for Economic Cooperation employees in Bermuda) is an annual government fee, the first payment of which is made
and Development (OECD). immediately upon incorporation and subsequent payments of which are made in January of each
year.

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