Taxation of international executives
Are there social security/social insurance taxes in your country? If so, what are the rates for employers and employees?
Generally, social insurance contributions are required to be paid with respect to every employed or self-employed person who works more than 4 hours a week. However, social insurance contributions are not required to be paid by non-residents if they work for a period of less than 26 consecutive weeks in Bermuda. Social insurance contributions are fixed at a weekly rate of $68.94 (as of 01-Aug-16), with the employer and employee each responsible for one-half of the weekly contribution ($34.47). The employer is responsible for withholding the employee portion and for remitting the total social insurance tax due per employee on a monthly basis.
Employers who employ Bermudian employees are required to provide a pension plan per the National Pension Scheme (Occupational Pensions Act) of 1998. The plan must be administered by a licensed financial institution, and the funds must be maintained separately from the assets of the employer.
Are there any gift, wealth, estate, and/or inheritance taxes in your country?
Gifts of Bermuda assets including Bermuda real property and shares in private Bermuda companies are subject to the Stamp Duty. Estate Tax is also paid via the Stamp Duty. Rates of Stamp Duty are stipulated in the Stamp Duties Act of 1975 and can be located at the Office of Tax Commissioner website (www.gov.bm).
Bermuda does not impose a wealth tax.
Are there real estate taxes in your country?
Land Tax is a real property tax assessed on all developed land (commercial and residential) with some exceptions. Land Tax is imposed on the annual rental value (ARV) of each unit, payable by the owner. Residential units are taxed at graduated rates maintained by the Office of the Tax Commission (www.gov.bm). Commercial properties are generally taxed at a flat rate of 7.0%.
Are there sales and/or value-added taxes in your country?
Not applicable in Bermuda.
Are there unemployment taxes in your country?
Not applicable in Bermuda.
Are there additional taxes in your country that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.
Employers in Bermuda are required to provide health insurance to all employees under the Health Insurance Act of 1970. Required coverage is the full standard hospital benefit for employer and all covered dependents. Coverage must be obtained from a licensed insurer. Non-Bermudians employed in Bermuda for less than six months are exempt from coverage.
Stamp Duty is imposed on transfers of Bermuda property and on Estates as discussed above. Rates of Stamp Duty are stipulated in the Stamp Duties Act of 1975 and can be located at the Office of Tax Commissioner website (www.gov.bm).