bermuda-tax

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# Bermuda Tax

## Section 1 -- Quick Reference

**Quick Reference**

| Field | Value |
| --- | --- |
| Country | Bermuda |
| Tax | Payroll tax (primary), customs duties, land tax, stamp duty, social insurance |
| Currency | BMD (1:1 with USD) |
| Tax year | Calendar year |
| Primary legislation | Payroll Tax Act 1995 (as amended); Customs Tariff Act 1970 |
| Supporting legislation | Companies Act 1981; Land Tax Act 1967; Stamp Duties Act 1976 |
| Tax authority | Office of the Tax Commissioner |
| Filing portal | https://www.tax.gov.bm |
| Filing deadline | Payroll tax quarterly (Apr 15, Jul 15, Oct 15, Jan 15); annual reconciliation March 15 |
| Contributor | Open Accountants Community |
| Validated by | Pending -- requires sign-off by a licensed Bermuda practitioner |
| Skill version | 2.0 |

### Tax Landscape Overview

**Tax Landscape Overview**

| Tax Type | Status |
| --- | --- |
| Income Tax (personal) | None |
| Income Tax (corporate) | None |
| Capital Gains Tax | None |
| Value Added Tax (VAT) | None |
| Sales Tax | None |
| Withholding Tax | None |
| Payroll Tax | Yes -- primary revenue source |
| Customs Duties | Yes -- on imports |
| Land Tax | Yes -- on property |
| Stamp Duty | Yes -- on real estate transfers |
| Social Insurance | Yes -- contributory pension scheme |

- **Tax Assurance Certificate guarantee** — Bermuda has a legislative guarantee (Tax Assurance Certificate) that no income, capital gains, or withholding taxes will be introduced before 2035.  _(Tax Assurance Act)_

### Payroll Tax Rates (Current)

**Employer Rate Tier**

| Employer Rate Tier | Employer Rate |
| --- | --- |
| Up to BMD 200,000 annual payroll | Reduced rate (concession) |
| BMD 200,001 -- 350,000 | Intermediate rate |
| BMD 350,001 -- 500,000 | Standard rate |
| Above BMD 500,000 | Standard rate (10.25%) |

**Employee Income Tier**

| Employee Income Tier | Employee Rate |
| --- | --- |
| Up to BMD 48,000 | 0.50% |
| BMD 48,001 -- 96,000 | 9.25% |
| BMD 96,001 -- 200,000 | 10.00% |
| BMD 200,001 -- 500,000 | 11.50% |
| BMD 500,001 -- 1,000,000 | 12.50% |

- **Payroll tax cap** — BMD 1,000,000 BMD (per person per year)  _(Payroll Tax Act 1995)_

### Conservative Defaults

**Conservative Defaults**

| Ambiguity | Default |
| --- | --- |
| Unknown employer classification | Standard rate |
| Unknown employee income tier | Highest applicable rate |
| Unknown customs duty category | General merchandise rate (22.25%) |
| Unknown land tax ARV band | Higher rate band |

## Section 2 -- Required Inputs and Refusal Catalogue

### Required Inputs

- **Minimum viable inputs** — Minimum viable -- employer payroll records for the quarter, number of employees, and total remuneration paid.
- **Recommended inputs** — Recommended -- breakdown of remuneration by employee, employer classification (exempted undertaking vs local), prior quarter returns.
- **Ideal inputs** — Ideal -- complete payroll system export, benefits-in-kind valuations, employer registration documents, prior annual reconciliation.

### Refusal Catalogue

- **R-BM-1** — Bermuda does not have income tax. If the question relates to income tax in another jurisdiction, use the appropriate country skill. (Income tax computation)  _(R-BM-1)_
- **R-BM-2** — Bermuda does not have VAT or sales tax. No indirect tax return exists. (VAT/sales tax computation)  _(R-BM-2)_
- **R-BM-3** — Economic substance requirements are too fact-sensitive. Escalate to a licensed Bermuda practitioner. (Economic substance detailed compliance)  _(R-BM-3)_
- **R-BM-4** — Insurance companies have specialised regulatory and tax requirements. Escalate. (Insurance sector-specific rules)  _(R-BM-4)_

## Section 3 -- Compliance Pattern Library

### 3.1 Employer Payment Patterns

**Employer Payment Patterns**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| SALARY, WAGES, BONUS, COMMISSION | Payroll tax base | Include in taxable remuneration |
| BENEFITS IN KIND, HOUSING ALLOWANCE | Payroll tax base | Include -- benefits are taxable remuneration |
| PENSION CONTRIBUTION (employer) | Check | May be excluded from payroll tax base |
| REIMBURSEMENT (business expense) | EXCLUDE | Not remuneration if properly documented |
| CONTRACTOR PAYMENT | Check | If truly independent contractor, not payroll tax |
| DIRECTOR FEE | Payroll tax base | Include |

### 3.2 Customs Duty Categories

**Customs Duty Categories**

| Category | Duty Rate | Notes |
| --- | --- | --- |
| General merchandise | 22.25% -- 25% | Most goods |
| Food items | 0% -- 10% | Many essentials at lower rates |
| Clothing and footwear | 6.5% |  |
| Motor vehicles | 33.5% | Standard |
| Prescription medications | 0% | Exempt |
| Electronics/household goods | 25% |  |
| Alcohol | High specific rates |  |
| Tobacco | High specific rates |  |

From openaccountants/openaccountants, AGPL-3.0.

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