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Economy and Banking Sector of Bermuda

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in Bermuda: 0.0 - 0.0%

Withholding tax rates applied on payments of interest and dividends in Bermuda are shown in Table 1.

Dividends Interest
Natural Persons (residents) 0.0 %0.0 %
Natural Persons (non-residents) 0.0 %0.0 %
Table 1. Withholding tax rates in Bermuda.

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Bermuda: 4 Signed Agreements

Bermuda signed DTAs which already came info force with the following jurisdictions:

BH Bahrain
SC Seychelles
US United States

There are also several agreements between Bermuda and other jurisdictions which were signed but haven't yet come into force:

QA Qatar

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 38 Signed Agreements

Bermuda signed TIEAs which already came info force with the following jurisdictions :

AR Argentina
AW Aruba
AU Australia
CA Canada
CN China
DK Denmark
FO Faroe Islands
FI Finland
FR France
DE Germany
GL Greenland
GG Guernsey
IS Iceland
IN India
IE Ireland
JP Japan
MY Malaysia
MT Malta
MX Mexico
NL Netherlands
NZ New Zealand
NO Norway
PT Portugal
SG Singapore
ZA South Africa
SE Sweden
GB United Kingdom
US United States

There are also several agreements between Bermuda and other jurisdictions which was signed but haven't yet come into force:

BE Belgium
BR Brazil
CW Curacao
CZ Czech Republic
ID Indonesia
IT Italy
KR Korea, Republic of
PL Poland
SX Sint Maarten (Dutch part)
TR Turkey

Automatic Exchange: Starts in September 2017

Bermuda signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Automatic Excnange: 49 Bilateral Agreements to Receive Information

Bermuda has signed bilateral agreements with 49 jurisdictions to automatically receive information:

AR Argentina
AU Australia
AT Austria
BE Belgium
BR Brazil
BG Bulgaria
CA Canada
CN China
CO Colombia
HR Croatia
CZ Czech Republic
DK Denmark
EE Estonia
FO Faroe Islands
FI Finland
FR France
DE Germany
GR Greece
GL Greenland
HU Hungary
IS Iceland
IN India
IE Ireland
IT Italy
JP Japan
KR Korea, Republic of
LV Latvia
LI Liechtenstein
LT Lithuania
LU Luxembourg
MY Malaysia
MT Malta
MU Mauritius
MX Mexico
MC Monaco
NL Netherlands
NZ New Zealand
NO Norway
PL Poland
PT Portugal
SM San Marino
SC Seychelles
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
SE Sweden
GB United Kingdom
UY Uruguay

Automatic Excnange: 0 Bilateral Agreements to Send Information

Bermuda has not singed any bilateral agreements to automatically send information.

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Bermuda
IGA in effect since 19 December 2013, Model 2

Bermuda has FATCA agreement with the U.S. in effect since 19 December 2013 (Intergovernmental Agreement Model 2).

Further Information