Jun 6, 2011 – Bermuda’s tax information exchange agreement (TIEA) with Canada will come into effect from the start of next month, Premier Paula Cox has announced.
The agreement was signed on June 14, 2010, in Bermuda, and on its enactment, will mean that dividends of foreign affiliates resident in Bermuda that are paid to their Canadian parent companies out of the income earned in Bermuda will be exempt from Canadian taxation.
“The Canadian delegation attending the Global Forum for Transparency and Exchange of Information for Tax Purposes here in Bermuda has delivered this very welcome news of the Canada-Bermuda TIEA entering into force on July 1,” said Ms Cox.
“The industry has been understandably looking forward to this news. Canadian companies are hugely involved in the captive, hedge fund and private equity areas of the international business sector and more recently in the banking arena.
“Currently, there are 1,145 entities with Canadian interest, and this number is expected to grow exponentially.”
The Bermuda Insurance Development Council (IDC) chairman, Allison Towlson, said: “The IDC is very pleased that the Canadian TIEA will soon be a reality. We congratulate the Bermuda Government for their vision and hard work in seeing this process through. We believe the TIEA will channel more business opportunities with Canadian companies. It will also provide Canadian entities with a wider variety of advanced risk management tools from the Bermuda market.”
About the Bermuda Market
Bermuda is acknowledged as a key participant in the global insurance and reinsurance markets. The significant number of companies with their head office in Bermuda confirms the Island as a major insurance and reinsurance center. The number of Bermuda companies with secure financial strength ratings continues to grow, further confirming the strength of the Bermuda Market. Bermuda is also home to a number of subsidiaries of global insurance and reinsurance companies.
The IDC is one of several sub-committees of the IAC. Its chief function is to provide generic marketing support to the industry as a whole, promoting the Island as a leading captive insurance, commercial insurance and reinsurance center. Activities of the Council include: the maintenance of the busy Insurance Information Office; the organization of the Bermuda domicile’s presence at RIMS and other major (re)insurance conferences on, and off, the Island; the maintenance of a very informative website; the publication and distribution of a widely-read industry newsletter, Bermuda Insurance Update, together with other documents, such as Bermuda Market Solutions which outlines the wide availability of insurance and reinsurance products in Bermuda. www.bermuda-insurance.org
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