Taxation of international executives
With the exception of the Payroll Tax (summarized below), there is no income tax, capital gains tax, or withholding tax in Bermuda. Tax revenue is derived primarily from the payroll tax, customs/import duties, real property tax, corporate services tax, and fuel taxes.
The Bermuda tax authority is the Office of the Tax Commissioner (OTC).
The official currency is the Bermuda Dollar (BMD) which is at par with the US Dollar. Both USD and BMD are widely accepted.
Herein, the host country/territory refers to the country/territory to which the employee is assigned. The home country/territory refers to the country/territory where the assignee lives when they are not on assignment.
All information contained in this document is summarized by KPMG Tax Limited, the Bermuda member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Payroll Tax Act 1995, and as amended, as enforced by the Office of the Tax Administrator, the Contributory Pensions Act 1970, as directed by the Department of Social Insurance, the Bermuda Immigration and Protection Act 1956, as administered by the Department of Immigration, National Pension Scheme (Occupational Pensions) Act 1998, Stamp Duties Act 1975, Health Insurance Act 1970, and the Land Valuation and Tax Act 1967.
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KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.