Corporate Income Tax Amendment (No. 2) Act 2025

What this bill does

This bill updates Bermuda's corporate income tax law to better align with international tax rules (OECD Pillar 2). It makes technical fixes and clarifications, sets up a new tax credits system, and ensures Bermuda's tax system meets global standards that multinational companies must follow.

If passed (voted YES)

• Multinational companies operating in Bermuda will face clearer, more internationally consistent tax rules
• A new tax credits system will be established to potentially reduce tax burdens for qualifying businesses
• Bermuda's corporate tax system will better comply with OECD requirements, helping maintain the island's competitiveness as a business jurisdiction

If rejected (voted NO)

• Current corporate tax rules remain unchanged, potentially creating compliance issues with international standards
• No new tax credits system would be available for businesses
• Bermuda might face challenges maintaining its attractiveness to international businesses due to outdated tax provisions

Who it affects

This primarily affects large multinational corporations with operations in Bermuda, their tax advisors, and the Corporate Income Tax Agency that administers these rules. It also impacts Bermuda's broader economy by influencing the island's competitiveness as an international business center.