Bermuda - Common law
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Bermuda taxes

If you want to incorporate in Bermuda, you have to know about taxation for an Exempted company which is the most common company type in Bermuda.

Exempted Companies in Bermuda are entitled to do business outside the country. They may have restrictions to trade and own real estate within the territory and to undertake financial services activities. An Exempted Company is totally tax-exempted. This means that income accrued offshore is not subject to taxation. Currently, Bermuda does not levy corporate income tax to any legal entity, but an Exempted Company is protected from any newly enacted taxes on income or capital gains until 2035. This ranks Bermuda as 1st overall in terms of CIT globally.

An Exempted Company may be formed by one or more shareholders and one or more directors, who can be legal or natural persons. Nominee shareholders are allowed. It is required a secretary, who has to be an Bermuda individual resident. Minimum capital required is US$ 1. Bearer shares and shares without par or nominal value are not allowed.
Shareholders and directors are publicly disclosed. Beneficiaries are disclosed to the authorities but not available on public record. Accounting records must be kept and financial statements must be prepared. However, there is no requirement to submit annual return, tax return or file accounts to the authorities. The audit requirement may be waived if members and directors agree.
There is no value-added tax or sales tax, which ranks Bermuda as 1st overall in terms of VAT globally.

Thin capitalisation rules are not in effect. Thin capitalisation refers to any sort of restrictions on companies' debt-to-asset ratios. Dividends are not taxable. Dividends are distributions of company profits, established by the board, to a class of its shareholders. Dividends can be either stock, cash, or property. Capital Gains are tax-exempted. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

There are no withholding taxes in Bermuda. This means that payments on dividends, interests, royalties or fees to non-residents are not taxed.
There is no known tax on wealth in Bermuda. There is a real property tax and a stamp duty on transfer of real property. We are not aware of any commonly used credits for innovation spend that include tax relieft in BM.

The above is not tax or legal advice for your company's circumstances. can point you to a lawyer in Bermuda who can give you the proper advice and help you need. Want to work together? Click incorporate now if you are in a hurry, or press the free consultation button above.

It takes approximately - hours to file and prepare documents for a Bermuda Common law.
The corporate tax is approximately 0% which is 1 in the world.

Owners of a company in Bermuda are not allowed to carry back a loss .

The vat rate in Bermuda is 0% which ranks 1 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
0Tax treaties
0%Offshore Tax
0%Corp rate
-Loss carryback years
-Corporate time
0%VAT rate
0%Capital gains
2017AEOI planned

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Bermuda Tax Treaties

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Country Info

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Bermuda (eng)
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Northern America
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