Tax In Bermuda
One of the most consistently challenging aspects of contracting in Bermuda is complying with the country’s tax system. As well as paying tax in Bermuda, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.
If you’re working in Bermuda under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Bermuda for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Bermuda, but contractors may not be offered this service because of their short stay with each employer.
Anybody who can’t pay their tax in Bermuda through PAYE is left with the prospect doing everything themselves.
Do you know much about Bermudian Tax Law? Does Bermuda have a tax treaty with your home country? You will need to find out or find someone who can help!
If you are a contractor and want a calculation on your tax and net retention in Bermuda, we can supply it to you free of charge.
Contractors in Bermuda are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Bermudian umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).
The companies are experts in Bermudian taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Bermudian tax office or tax department directly including processing your tax refund if you are eligible.
We work with numerous umbrella companies in Bermuda, many of whom are experts in tax and immigration laws. If you have any questions about tax in Bermuda, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Bermudian work permit.
Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Bermuda but without the overhead of directly dealing with the Bermudian tax authorities. Get in touch with us today for some reliable advice on tax in Bermuda!
Individuals are not taxed on their income in Bermuda.
Both residents and non-residents are not subject to income, withholding or capital gains taxes in Bermuda.
Payroll Tax Withholding: Your employer may deduct a 6% withholding amount from your salary as a contribution to the total Payroll Tax amount imposed on employers.
Employees may be subject to a salary deduction for Payroll Tax. The amounts are as follows:
| Amount (BMD) | Marginal Tax Rate for 2017/18 (%) | Marginal Tax Rate for 2018/19 (%) |
| 0-48,000 | 4.75 | 4.25 |
| >48,000-96,000 | 5.75 | 5.50 |
| >96,000-235,000 | 7.75 | 9.00 |
| >235,000-900,000 | 8.75 | 11.00 |
Employers are liable for Payroll Tax on the total value of cash and benefits paid to employees. Payroll Tax consists of 2 portions, an employer portion and employee portion, both of which are the responsibility of the employer. The employer may choose to deduct the employee portion in full or in part.
No
As there is no residency for tax purposes, you become a resident in Bermuda when you are granted a work permit.
No