Bermuda Signs Tax Pact with Japan

Bermuda’s Minister of Finance, the Hon. Paula A. Cox J.P., M.P., announced that the island has signed a bilateral agreement with Japan that provides for a full exchange of information on criminal and civil tax matters between the two countries.

The signing of the Tax Information Exchange Agreement (TIEA) took place at a ceremony at the Japanese Embassy in London, Cox and Sumio Kusaka, Charges d’affaires ad interim, who signed the agreement for Japan.

The agreement contains a clause for the “Prohibition of Prejudicial or Restrictive Measures and a mini Double Taxation Agreement which provides benefits for students and pensioners,” said the bulletin. It also indicated that Bermuda is Japan’s first TIEA partner.

Cox explained that negotiations with Japan were concluded in Bermuda in June 2009. At that time, the Japanese delegation stated that Japan intended to use the product of its negotiations with Bermuda as a model for all future negotiations with other financial centers for TIEAs. “We regard this as a tremendous compliment for Bermuda knowing that our work as an advanced financial jurisdiction is now used as a base from which other countries can work.

“Already approximately 20-25 percent of Japanese Property Cat business is placed in Bermuda, as well as 5 percent of Property Pro-Rata business,” she added. “With over 100 companies in Bermuda with Japanese interests, we see this agreement as enhancing opportunities for further foreign direct investment between our two countries and a great step forward in cementing the relationship between Bermuda and Japan.

“Moreover, this TIEA marks Bermuda’s nineteenth signed tax information exchange agreement, further demonstrating that Bermuda is far from complacent about our elevated position on the OECD white list and that we are resolved, as always, to implement the internationally agreed tax standard.”

Source: Bermuda Ministry of Finance – www.gov.bm

Topics Japan