Bermuda

The Bermuda government has extended the tax exemption granted to Bermuda companies under the Exempt Undertakings Act of 1976 from 28 March 2016 until 31 March 2035. The extended Undertaking provides protection to companies from any newly enacted taxes on income or capital gains until 31 March 2035. 

In December 2018, the Bermuda government passed the Economic Substance Act 2018 (ESA), requiring in-scope entities to comply with provisions of the ESA by 1 July 2019, with the first return being due in 2020. Further guidance regarding the ESA continues to be issued on a regular basis. See details in the Other issues section.

The 2021/22 Bermuda Budget and legislation enacted during 2020 brought updates to the payroll tax. The changes primarily entail short-term legislation changes to provide tax relief to troubled sectors due to COVID-19.