Corporate Income Tax Act 2023

What this bill does

This bill creates a new corporate income tax that will apply to certain large Bermuda companies that are part of multinational groups. The tax is designed to keep Bermuda competitive as an international business center while meeting global tax standards that require large companies to pay minimum taxes.

If passed (voted YES)

• Large multinational companies with Bermuda entities will need to pay corporate income tax on their Bermuda profits, calculated based on international accounting standards
• These companies will need to file annual tax returns and may be able to claim credits for taxes paid in other countries
• Bermuda's tax system will align with international rules being adopted by other major financial centers worldwide

If rejected (voted NO)

• Bermuda companies would continue operating under the current system with no corporate income tax
• Large multinational groups might face tax penalties or restrictions in other countries that have adopted the new international tax rules
• Bermuda could potentially lose its competitive position as other jurisdictions implement similar tax measures

Who it affects

This primarily affects large multinational companies with operations in Bermuda - specifically those that are part of groups meeting certain size thresholds. Small local businesses and individuals are not directly impacted by this corporate tax.