Global Daily Tax News, Bermuda Tasks Tax Reform Commission With Pillar Two Response, (Nov 14, 2023)

The Bermuda Government has establishad a Tax Reform Commission to advise on the territory's response to the OECD's two-pillar international tax reform plan.

The Commission has been given a mandate of determining reforms in response to the OECD's two-pillar international tax reform and ensuring the territory remains a competitive domicile for businesses.

The Commission will respond to the work of the International Tax Working Group, which completed the first phase of its work in July 2023 and proposed the implementation of a corporate income tax regime, which is due to be effective from 2025 for multinational enterprises in scope of the reforms (those with annual revenue of EUR750m or more).

The Commission has been tasked with recommending policy options that would share the cost and benefits of the changes equally and fairly; enhance Bermuda's international tax competitiveness; broaden the tax base, reduce the variability of payments, and consider alternate forms of taxes; reduce the impact of taxes on the cost of living in Bermuda and to consider how earners below a threshold of income might benefit from reduced taxes; and consider how the Government's revenue management can be improved.