The following table provides an overview of other taxes that may be imposed on a company doing business in the country.
|Capital Duty||Varies||Exempted companies are subject to an annual fee based on assessed capital. The fee ranges from BMD 2,095 up to BMD 32,676 depending on the amount of capital, with the top fee applying when capital exceeds 500 million BMD.|
|Payroll Tax||Varies||A payroll tax is imposed on the total value of cash and benefits paid or given to an employee. A remuneration basis cap of BMD 900,000 (750,000 up to 31 March 2017) applies. The payroll tax consists of employer and employee portions. The employer payroll tax portion depends on the class of the taxpayer, while the employee payroll tax portion depends on the annual remuneration received by the employee. The obligation to pay the payroll tax is entirely with the employer. See note below for the rates.|
|Social Security Employer Contribution||BMD 35.92 per week||Employers are required to pay a contribution of BMD 35.92 per employee per week.|
|Social Security Employee Contribution||BMD 35.92 per week||Employees are required to pay a contribution of BMD 35.92 per week.|
|Property Tax||Varies||An annual land tax is levied on the annual rental value of the land, subject to certain exceptions. Effective 1 July 2019, the annual land tax rate ranges between 0.80% to 50% based on the annual rental value of the property. Commercial properties are subject to a general rate of 9.5%. Land tax on commercial properties is subject to 7% in Economic Empowerment Zone.|
|Transfer Tax||N/A||There is no transfer tax in Bermuda.|
|Stamp Duty||Varies||Stamp duty is levied on certain legal instruments but does not apply for exempted companies.|
|Excise Taxes||N/A||There is no excise tax in Bermuda.|
|Customs Duty||Varies||Customs duty applies for most goods imported into Bermuda at various rates. A sugar tax of 75% is imposed on non-nutritive food items.|
|Corporate services tax||7%||Providers of corporate services such as administrative, management, secretarial, and other services are subject to a corporate service tax at the rate of 7% on gross revenue derived from an exempted undertaking.|
|Financial Services Tax||0.0075% up to 3.50%||Effective 1 April 2017, Bermuda has introduced a new financial services tax for banks, domestic insurance, and money service businesses. The rates vary from 0.0075% up to 3.50% depending on the type of financial services. Effective 1 April 2018, collecting premiums may not be considered an exempt activity under the Exempted Undertakings Tax Protection Act.|
The employer and employee contributions towards payroll tax are as follows:
|Annual Compensation||Contribution %|
|Up to BMD 200,000||1.75%|
|BMD 200,001 up to BMD 350,000||3.50%|
|BMD 350,001 up to BMD 500,000||6.50%|
|BMD 500,001 up to BMD 1 million||9.00%|
|More than BMD 1 million||10.25%|
|Up to BMD 48,000||1.50% (reduced from 2%, effective 1 April 2022)|
|BMD 48,001 up to BMD 235,000||9.00% (increased from 8.50% for BMD 48,001 to 96,000, effective 1 April 2022)|
|More than BMD 235,000||9.50%|
International businesses, which normally register as exempted undertakings, are required to make employer contributions at the rate of 10.25% of the total employee remuneration.
Certain categories of employers and employees may be exempt or charged to tax at special rates.
New business owners that register with the Bermuda Economic Development Corporation (BEDC) and meet specified conditions are eligible for payroll tax exemption for the first year of business. The general conditions for the exemption include:
- The business is a new business established after 1 April 2018 that is Bermudian owned and managed and operated locally; and
- Annual gross payroll of the business does not exceed BMD 500,000 and annual sales revenue is less than BMD 1 million.
Prior to 1 April 2017 payroll tax was payable only by employers on salaries and emoluments paid to their employees. However, employers were able to recover a maximum contribution of up to 6% from employees.
In response to the COVID-19 pandemic, the employer contribution towards social security is reduced to 0% for bars and restaurants, for the period from 1 April 2021 up to 31 March 2022.