Corporate Services Tax is charged under the authority of the Corporate Services Tax Act 1995. Corporate Services Tax is charged on a provider of corporate services in respect of gross earned revenue derived from an exempted undertaking for taxable corporate services provided during a tax period.
A provider includes an individual natural person, a company, partnership, association or body of persons, whether corporate or unincorporate, but does not include an exempted undertaking. Corporate services include corporate administrative services, corporate management services, corporate secretarial services, the provision of a registered office, the performance of functions in the capacity of director or resident representative and the provision of accounting and/or financial services.
Each provider is required to apply to the Tax Commissioner for registration within thirty days after becoming a provider of corporate services.
Tax period means each and every period of three calendar months commencing on the first day of April, July, October or January.
The tax is levied at 7% of gross earned revenue derived from an exempted undertaking to which, or on behalf of which, corporate services are provided.
Within fifteen days after the end of each tax period (calendar quarter), every provider shall submit a return specifying the gross earned revenue derived from the provision of corporate services. At the same time, the provider shall pay the tax due in respect of such revenue.
Tax returns filed late or underpaid are subject to a penalty. If tax, further tax, or additional tax is not paid at or before the time fixed by or under the legislation, a penalty for late payment will be levied. The penalty is 5% of the tax due for each month or part of a month that the tax is unpaid or underpaid, to a maximum of 30%. An additional tax equivalent to the amount of tax may also be levied.
The information contained on this page is merely a guide for the taxpayer and is not a comprehensive statement of the Legislative requirements. These requirements are contained primarily in the Corporate Services Tax Act 1995 and the Taxes Management Act 1976 as amended. Bermuda Laws Online can be accessed at www.bermudalaws.bm.
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