Any company or individual providing corporate services to an exempted undertaking in Bermuda is required to pay a 7 per cent corporate services tax on the revenue earned. An exempted undertaking is defined in the Companies Act 1981 and includes an exempted company, an exempted partnership or a permit company.
Individual persons, companies, partnerships, associations, or bodies of persons—incorporated or unincorporated—are required to pay this tax.
Corporate services include:
- corporate administrative services
- corporate management services
- corporate secretarial services
- provision of a registered office
- functioning as director or resident representative
- accounting and financial services
Banking, auditing, and managing an insurance company are not considered corporate services for the purposes of the Corporate Service Tax.
Registering to pay Corporate Services Tax
All providers of corporate services must complete an Application to Register for Corporate Service Tax and apply at the Office of the Tax Commissioner for registration within 30 days of becoming a provider.
When to pay your Corporate Service Tax
The Corporate Service Tax return must be completed and filed with payment of tax at 7 per cent within 15 days of the end of each calendar quarter. Late or underpaid taxes are subject to a penalty.
Please refer to the Corporate Services Tax Act 1975 and the Companies Act 1981 for the legislative requirements regarding Corporate Service Tax.