Exchange of Information

TAX TRANSPARENCY

Bermuda, in line with global developments, has progressively enhanced its framework for tax transparency. An early step in this process was the establishment of a regime to support the exchange of information. As part of this effort, Bermuda entered into numerous Tax Information Exchange Agreements (TIEAs), which enable foreign tax authorities to obtain relevant financial information in accordance with agreed international standards.

Building on this foundation, Bermuda adopted automatic exchange of information regimes. This included the implementation of the U.S. Foreign Account Tax Compliance Act and the OECD’s Common Reporting Standard. Under these frameworks, financial institutions are required to identify and report financial account information on reportable persons, which is then exchanged with partner jurisdictions on an annual basis.

Further developments followed Bermuda’s participation in the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting BEPS. This led to the introduction of additional transparency measures, including Country-by-Country reporting requirements for multinational enterprise groups, and economic substance requirements for entities carrying out relevant activities. These measures are designed to provide greater visibility into the allocation of income, taxes, and business activities across jurisdictions.