Government signs US tax agreement
The Bermuda Government has signed a major tax agreement with the United States.
The Country by Country Competent Authority Agreement means that the Government has satisfied the Internal Revenue Service’s data safeguards review and complies with the Organisation for
Economic Co-operation and Development’s Base Erosion and Profit Shifting tax transparency standards.
Under the new agreement, Bermuda now automatically provides corporate income of Bermudian-based multinational enterprises that have any US income-generating activities.
David Burt, the Premier, said: “The agreement we have put in place with the United States demonstrates Bermuda’s continued commitment to being transparent, co-operative and compliant with international tax authorities.
“As a leading jurisdiction in global tax transparency we will continue, without reservation, to show that Bermuda is no place to hide money. We stand by our call for other countries to meet the Bermuda Standard.”
The agreement was said to complement Bermuda’s other automatic exchange of information agreement with the USA, signed in 2013 and designed to give access to income information on US taxpayers under the Foreign Account Tax Compliance Act.
The country by country treaty is also in line with an agreement signed earlier this month between Bermuda and the United Kingdom.
The UK agreement, like the US agreement, enables the automatic reporting of corporate income on a country-by-country basis for UK tax enforcement purposes.
Bermuda is the first UK Overseas Territory to sign a CbC Competent Authority Agreement with the UK and now also the USA.
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