Following a positive formal decision by OECD Forum for Harmful Tax Practices, Bermuda anticipates removal from EU’s Annex II
In November 2021, the OECD’s Forum for Harmful Tax Practices (FHTP) issued Bermuda with an urgent recommendation to initiate certain exchanges of information relating to economic substance. These exchanges were completed in December 2021, fulfilling the recommendation well in advance of its April 2022 deadline.
In February 2022, the European Union’s Code of Conduct Group (COCG) welcomed Bermuda’s cooperation and its actions in addressing the recommendation from the FHTP. However, at the time, the COCG took the view that, pending a formal decision by the FHTP at its next scheduled meeting in April 2022, the Group would include Bermuda’s commitment to address the recommendation in Annex II.
The Ministry of Finance can advise that at the 56thmeeting of the FHTP held on April 21st and 22nd, delegates formally concluded, in respect to Bermuda, that the recommendation relating to the exchange of information be removed. This confirms that Bermuda has now satisfied the condition imposed by the COCG for removal from Annex II.
Consequently, it is the Ministry’s expectation that Bermuda will be removed from Annex II in October 2022.