Bermuda reinsurers announce support for government budget

Bermuda reinsurers announce support for government budget | Insurance Business Canada

Reinsurance

Bermuda reinsurers announce support for government budget

Industry praises efforts towards first balanced budget in more than 20 years

Reinsurance

By
Kenneth Araullo

Bermuda’s business sector, including its re/insurance industry, has collectively endorsed the newly announced government budget, demonstrating wide-ranging support through a statement coordinated by the Bermuda Business Development Agency (BDA).

This endorsement is notable for its backing of the forthcoming introduction of Corporate Income Tax (CIT), set for January 1, 2025. Key signatories of the statement include leaders from the Association of Bermuda Insurers and Reinsurers (ABIR), Association of Bermuda International Companies (ABIC), Bermuda Chamber of Commerce, and Bermuda International Long Term Insurers and Reinsurers (BILTIR), among others.

As per the Royal Gazette, the announcement praises the government’s effort to present the first balanced budget in more than two decades and commends the Tax Reform Commission’s role in suggesting measures to reduce the cost-of-living and enhance the business climate in Bermuda. It also highlights the introduction of CIT as a move that reinforces Bermuda’s appeal to multinational corporations.

The statement also underscores the significance of these developments in maintaining Bermuda’s reputation as a compliant, transparent jurisdiction. This reputation, according to the statement, has been crucial in attracting multinational enterprises to the island.

Industry and government collaboration in shaping the CIT, alongside the new international tax framework by the Organization for Economic Co-operation and Development (OECD), is viewed as a strategic move to preserve Bermuda’s competitive edge and leadership on the global stage.

“ABIR will continue to provide technical assistance to the government and further collaborate on the implementation of the Bermuda Corporate Income Tax Act of 2023 helping to establish job-creating ‘Qualified Refundable Tax Credits,’ efficient tax administration and fiscally responsible guardrails for expected, additional government revenue,” ABIR CEO John M Huff said.

“BILTIR believes that the Bermuda Government’s introduction of the Corporate Income Tax is a reasonable response to the challenges of the OECD-sponsored new international tax framework, because it will ensure that taxes on Bermuda income stay in Bermuda, thereby allowing Bermuda to take aim at the cost-of-living and doing business in Bermuda,” BILTIR executive director Christine Patton said.

What are your thoughts on this story? Please feel free to share your comments below.