ABIC Chair says we’re in the tax year, but questions remain over how the Corporate Income Tax will be applied
We’re in the unique position of having started the tax year without full clarity over exactly how the Corporate Income Tax is going to be applied, and what tax credits may be given to the companies on which it applies.
This from Christian Dunleavy, the Chairman of the Association of Bermuda International Companies (ABIC).
Ahead of Friday’s Budget, Mr Dunleavy hopes Government will signal where they are heading with things that drive up both the cost of doing business.
“Those are the same things that drive the cost for all of us living in Bermuda”, Mr Dunleavy says.
“The cost of healthcare… housing costs… a huge amount of taxes are raised to pay for the interest on the [national] debt.”
Mr Dunleavy has previously spoken about an ‘effective tax rate’ of 16% on Bermuda-based companies – such as payroll tax, housing, and healthcare.
He suggested there is a need to reduce those costs with the introduction of the 15% Corporate Income Tax, to keep Bermuda competitive as an International Business jurisdiction.
This week, Mr Dunleavy has repeated that the industry is “looking for clarity on the cost of doing business in Bermuda, in this corporate income tax environment.”
The 15% Corporate Income Tax came into effect on January 1st this year, and it applies to Bermuda businesses that are part of a multinational enterprise with annual revenue of 750-million euros or more.
The CIT is the local application of the OECD’s Global Minimum Tax.
