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 (USD). Both USD and BMD are widely accepted.
Herein, the host country/jurisdiction refers to the country/jurisdiction to which the employee is assigned. The home country/jurisdiction refers to the country/jurisdiction where the assignee lives when they are not on assignment.
All information contained in this publication is summarized by KPMG Tax Limited, the Bermuda member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The information contained in this publication is 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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