🇧🇲 Tax Overview — Bermuda

Exempt Company (EC)

Bermuda Exempt Companies pay no corporate tax, income tax, capital gains tax, or withholding tax. The Bermuda government can issue a Tax Assurance Certificate guaranteeing the company will remain exempt from any future income or profit taxes until at least 2035. There is no VAT or sales tax. Government revenue comes from annual registration fees based on assessable capital: companies with assessable capital up to $12,000 pay approximately $1,995/year, scaling upward for larger capital bases. Bermuda imposes a payroll tax on employers with Bermuda-based employees (currently up to 10.25% of remuneration). Customs duties apply to imported goods. The Economic Substance Act 2018 (as amended) requires entities conducting relevant activities (insurance, banking, fund management, holding, IP) to demonstrate adequate economic substance in Bermuda.