Accounting and tax

Corporate tax duty and legal requirements in Bermuda

  1. Companies incorporated in Bermuda are not subject to any corporate taxes. Only corporate service providers in Bermuda must pay a tax of 7% on gross earned revenue;
  2. Bermuda companies do not have to pay any withholding taxes on i) dividends ii) royalties or iii) interest;
  3. Both residents and nonresidents in Bermuda are not subject to any income, withholding or capital gains taxes;
  4. Both employers are employees are required to contribute US$32.07each, per week to the employee’s social security fund;
  5. The payroll tax in Bermuda ranges from 5.5% to 14.5% and must be filed quarterly. Employers are allowed to withhold up to 5.5% of the employee’s monthly remuneration as payroll tax;
  6. It is important our Clients are aware of their personal and corporate tax obligations in their country of residence and domicile, and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Legal and compliance

  1. Bermuda has signed Tax Information Exchange Agreements (TIEAs) with 25 countries including Australia, China, India, France and the UK;
  2. Our Clients interested in providing financial services through a Bermuda company must receive a license from the Bermuda Monetary Authority. Healy Consultants will assist our Clients apply for the relevant licenses;
  3. Majority of our Clients incorporate a Bermuda “exempt” company rather than a “local” company. A company qualifies as a local company if Bermudian nationals i) hold at least 60% of the shares ii) have at least 60% of the total voting rights in the company and iii) make up at least 60% of the board of directors;
  4. A Bermuda exempt company is not allowed to do business with local companies in Bermuda unless it has obtained a license to do so from the Ministry of Finance;

Contact us

For additional information on our accounting and legal services in Bermuda, please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
  • Mr. Petar Chakarov
  • Client Engagements Manager
  • Contact me!
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