image credit: Unsplash

Global minimum tax may reduce Bermuda’s competitive advantage: Fitch

October 20, 2021

The net profitability gap between Bermuda and non-Bermuda incorporated companies may narrow over time given the expected passage of the OECD-driven multilateral agreement to establish a 15% global minimum tax rate, according to Fitch Ratings.

The rating agency warns that this will erode Bermuda’s competitive tax advantage at the margin, perhaps making the island less attractive as a base for some enterprises.

While the profitability of basing yourself in Bermuda could wane a little, Fitch also noted that, “the overall benefits of maintaining a Bermuda market domicile and operations will likely endure.”

Read More on Artemis BM