Taxation

An anticipated 15 percent global minimum tax rate would marginally reduce Bermuda's advantageous tax status for the (re)insurance industry, according to Fitch Ratings. The 15 percent global minimum tax rate would be enacted with the expected passage of a recent multilateral agreement to establish the tax. Read More

A federal judge has granted a preliminary injunction barring the US Internal Revenue Service (IRS) from enforcing its micro-captive reporting requirement on CIC Services. The September 21, 2021, ruling comes after the US Supreme Court earlier this year overturned a previous federal district court ruling rejecting CIC's injunction motion. Read More

Although it should come as no surprise, in CCM 202134017, the Internal Revenue Service (IRS) has made clear its position regarding micro-captives formed in a jurisdiction outside the United States. Read More

The Office of the Insurance Commissioner for Washington State has issued draft regulations to implement legislation state lawmakers passed in April that sets new requirements for captive insurance companies licensed in other domiciles but doing business in the state of Washington. Washington State insurance regulators described the new law as a fair compromise. Read More

The government of Bermuda has joined the Organization for Economic Cooperation and Development's (OECD) "Inclusive Framework" for international taxation. A statement said Bermuda officials look forward to supporting the OECD's ongoing technical discussions ahead of the G20 foreign ministers' meeting in October 2021. Read More