This morning, Premier and Minister of Finance, the Hon. David Burt, JP, MP, signed an important tax agreement with the United Kingdom, a Country by Country Competent Authority Agreement. This agreement will complete The Organisation for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) tax transparency package between Bermuda and the UK. The agreement will enable the automatic reporting of corporate income on a country by country basis for UK related transfer pricing enforcement purposes. Bermuda is the first UK Overseas Territory to sign a CbC Competent Authority Agreement with the UK.
Similar to individuals under the Common Reporting Standard (CRS), corporations must also automatically report financial information to Bermuda authorities. Any reported UK related income will be shared automatically with UK tax authorities.
Premier David Burt at the conclusion of the signing stated, “I am pleased to sign this important agreement with the United Kingdom on behalf of the people of Bermuda. We are the first Overseas Territory to sign the agreement which further solidifies Bermuda’s position as a global leader in international tax transparency. Bermuda remains a jurisdiction with an excellent reputation for quality. We continue to demonstrate leadership in global tax transparency and we encourage other countries to meet the 'Bermuda Standard'.