Bermuda moved a step nearer to promotion from the OECD "grey list" as it reached agreement with The Netherlands on a tax information exchange agreement (TIEA) to be signed later this year.

The Island needs a minimum of 12 TIEAs to be considered for the "white list" of countries, considered by the Organisation for Economic Cooperation and Development to have implemented international tax information sharing standards, a tally the Government expects to achieve by the middle of next month.

The Island currently has three TIEAs — with the US, the UK and Australia — and is set to sign eight more next week, seven with the Nordic Group countries and another with New Zealand.

Germany has agreed to sign a TIEA with Bermuda in mid-May, and the Netherlands agreement should be signed in the summer, meaning that the Island should have at least 13 TIEAs in place by the next Group of 20 (G20) summit in 2010 to meet the OECD standard for the top tier of countries.

At a joint press conference with the Netherlands delegation last Thursday, Finance Minister Paula Cox said she found it extraordinary that Bermuda — which committed to OECD information-sharing standards back in 2000 — was grouped with countries who had committed only in recent months.

"The Netherlands has recognised Bermuda as one of the first international finance centres to engage in partnership with OECD countries in the worldwide effort to achieve greater transparency and cooperation in tax matters and because Bermuda is committed to these standards, Bermuda is not considered by the Netherlands to be a tax haven," said Ms Cox.

Ms Cox appeared at the Senate Chambers with members of the Bermuda negotiating team, including assistant financial secretary of the treaty unit Wayne Brown. Also on hand was the delegation from the International Tax Policy and Legislation Directorate of the Dutch Ministry of Finance, including international tax counsellor Rob van Kuik and Maikel Evers, to announce the conclusion of the details of the exchange agreement and treaties for the allocation of taxing rights.

The agreement, which was initialled on Thursday, should be signed by The Netherlands by August 2009.

Mr. Kuik said Bermuda has been one of the "leading lights" among the non-OECD countries and admitted he was surprised to see the Island included on the "grey list" of countries that have committed to the standards, but "have not yet substantially implemented" them. "The fact that we have reached agreement and others have reached agreement with Bermuda will hopefully mean that they will get off the grey list and get into the white category," he said.

The process, which was started two years ago, will enable tax authorities to access information about tax evaders and disclose any assets not reported in their home country.

Information to be exchanged included data on beneficial ownership of companies in the whole ownership chain, settlors, trustees and beneficiaries of trusts and that held by banks and financial institutions.

In addition to the TIEA, Bermuda has secured mini-double tax agreements to deal with the avoidance of double taxation on individuals' income, with students from Bermuda studying or training in the respective countries not being taxed on income supplements for maintenance and education.

Two further mini-double tax agreements were also concluded for the avoidance of double taxation on ships or aircraft in international traffic as well as a process to deal with the adjustment of profits of associated enterprises.