Bermuda Double Tax Treaties

DeltaQuest can assist you whether you are an individual or corporate entity in setting up a Bermuda trust or Bermuda foundation to achieve complete and comprehensive asset protection. For more information about Bermuda double tax treaties, please read the information below. Alternatively, to establish a Bermuda Trust or foundation please complete our Application Form, or if you require further information please Contact Us.

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In 1986, the US and the UK on behalf of Bermuda entered a tax convention covering the taxation of insurance enterprises and an Article relating to the mutual assistance in tax matters. Under the treaty, insurance profits are not taxable in the other country unless the profits of the enterprise are attributable to a permanent establishment in the other country.

The mutual assistance involves two areas (a) assistance in the prevention of tax fraud and the evasion of taxes, and (b) developing appropriate conditions, methods, and techniques for providing assistance. Also, the US and Bermuda treaty contains a special exception to the exchange of information rules. The exception applies to information protected by local bank confidentiality laws and bearer shares. The information may not be shared if such information is sought solely for civil tax purposes. On the other hand, if criminal tax charges are brought by the US or Bermuda, this exception would not apply. The exception is available only if the Secretary of the Treasury, after making all reasonable efforts to negotiate an agreement which includes the exchange of such information, determines that such an agreement cannot be negotiated, but that the agreement which was negotiated will significantly assist in the administration and enforcement of the US tax laws, and if the President determines that the agreement as negotiated is in the national security interest of the US. Bermuda does not have any other tax treaties.

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