Tax Rate In Bermuda

What is the tax rate in Bermuda?

Finding out about the tax rate in Bermuda is absolutely essential if you’re considering working in the country. The tax system in Bermuda can be broken down into company tax, income tax, payroll tax and sales tax, and learning about these various components gives you a good idea of how much you’ll be paying during your stay. Bermudian taxes are generally variable, so the values included here are just averages. If you want to keep more of your earnings, you should consider using a contractor management company for your income tax in Bermuda.

Tax Rate In Bermuda

Corporate Tax Rate in Bermuda

Corporate tax or company tax in Bermuda is the amount taken from the earnings of corporations. If you own a corporation in Bermuda, you can expect to pay a fixed percentage (we don't have exact figures available currently) from your earnings. The specific rate you receive is dependent on a number of factors, such as the amount your company makes per annum.

Income Tax Rate in Bermuda

Income tax in Bermuda is charged to individuals, and depending on the company you’re working for you might have to calculate and submit returns yourself. Anybody freelancing or contracting in Bermuda will probably have to handle their taxes this way. Because individual earnings can be so different, the income tax rates in Bermuda vary according to your level of income. Unfortunately we don't have up to date income tax rates available at the time of writing.

Payroll Tax Rate in Bermuda

Payroll tax in Bermuda is very similar to income tax but it’s paid by your employer as you earn. Social security fees, public health insurance and other deductions are all included in this payment and other deductions in Bermuda are dependent on your income.

Sales Tax in Bermuda

Sales tax in Bermuda is applied to products you purchase using your already-taxed income. The rate of VAT in Bermuda (value-added tax) is not available at the time of writing this article but we will update this information soon. Sales Tax usually has several brackets depending on the type of product being purchased. There is nothing you can do about sales tax, but it’s good to know how much is added on to the cost of purchases.

How to Get the Best Tax Rates in Bermuda

The amount you pay for tax in Bermuda is heavily dependent on your income, but there are still many courses of action you can take if you have a good understanding of the system. Hiring an accountant in Bermuda will get you a better rate, but can be pretty expensive in itself. Using a contractor management company is one of the easiest ways to keep more of your earnings. Contractors can use the company as their “permanent” employer but still continue taking contracts freely. The company collect your payments, handle your taxes and then send you the remainder. They’re experts in Bermuda taxation, so they guarantee that you take home the biggest proportion of your earnings.

How We Help With Bermuda Taxation

We’re partners with numerous contractor management companies in Bermuda, and we know which ones specialise in the tax system in Bermuda. If you have any questions, we’ll check with the experts to ensure you receive the best advice. We also regularly help contractors like oil and gas workers, business analysts, IT project managers, telecommunications workers, testers and software developers keep more of their earnings by using a contractor management company. We’ll suggest the best options to you, and can help you determine the best course of action. Our advice is completely free, and you’re under no obligation, so get in touch with us today!

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