Bermuda Joins OECD "Inclusive Framework" on Global Taxation Plan

The government of Bermuda has joined the Organization for Economic Cooperation and Development's (OECD) "Inclusive Framework" for international taxation.

In a statement, the Bermuda government said it was joining a statement on a new framework for international taxation arising from the OECD's July 1, 2021, meeting "as a country committed to transparency, cooperation, and high levels of compliance with international standards."

The statement said Bermuda officials look forward to supporting the OECD's ongoing technical discussions ahead of the G20 foreign ministers' meeting in October 2021.

"Bermuda has been actively involved in ongoing discussions relating to this initiative to present positions that reflect the national interest and that of our various stakeholders," the statement said. "As part of that approach, we recognized the need to join with other members of the Inclusive Framework to reach this position supported by a significant majority of the membership."

The Inclusive Framework on Base Erosion and Profit Shifting aims to address multinational companies exploiting mismatches in tax rules among jurisdictions to avoid taxation. More than 130 jurisdictions have joined the Inclusive Framework.

"We fully intend to remain an active participant in the ongoing work of the Inclusive Framework to complete the development of an appropriate plan," Bermuda Finance Minister Curtis Dickinson said in the statement. "We have noted areas of concern at a technical and practical level, which we look forward to working to resolve constructively in the months ahead.

"Financial services is a crucial area of focus for us, and the private sector, given our role as a global hub in key industries such as insurance/reinsurance. Businesses in this sector aid many of the world's most vulnerable in adversity, and provide climate risk insurance which will be at the heart of making our planet sustainable," Mr. Dickinson said. "In relation to the former, Bermuda re/insurers have paid out more than a quarter of a trillion dollars over the past twenty years in claims arising from both natural and manmade disasters in the US and EU alone.

"We remain committed to working collaboratively with partners in the public and private sector to maximize benefits which can be achieved as a result of this initiative," he said.