Bermuda has signed its 12th Tax Information Exchange Agreement (TIEA), meaning it is no longer considered a tax haven under OECD guidelines. Fee Information Exchange Agreements (TIEAs) provide for the exchange of information between governments. After signing TIEAs with the governments of 32 countries, including Canada and Mexico, Bermuda is able to offer the insurance and investment markets new opportunities for captives, investment funds and other structures. A TIEAs request template has been developed to assist the competent authorities of TIEA partners in requesting information. It is available in English and French as well as Spanish, German, Italian, Japanese, Korean and Turkish. The purpose of this Agreement is to promote international cooperation in tax matters through the exchange of information. It was developed by the OECD Global Forum Working Group on Effective Exchange of Information. Dec. 3 – China recently signed a Tax Information Exchange Agreement (TIEA) with another tax haven, Bermuda, following the signing of the TIEA with the British Virgin Islands last year. The growing number of TIEAs signed by China is a testament to the country`s strong commitment to curbing capital flight. One of the main objectives of the new agreement is the automatic exchange of financial account information in accordance with the OECD Common Information Standard, for which a separate competent authority agreement was also signed in June (prior coverage). At present (August 2019), Bermuda has concluded Tax Information Exchange Agreements (TIEAs) for a total of 27 jurisdictions, namely Australia, Belgium, Canada, Chile, Curaçao, Denmark, The Faroe Islands, Finland, France, Guernsey, Iceland, India, Indonesia, Ireland, Italy, Malta, the Netherlands, Norway, Poland, Portugal, Singapore, South Africa, South Korea, St. Maarten, Sweden, Turkey and the United Kingdom.

In addition, Bermuda has signed TIEAs with the Czech Republic, Germany, Greenland and the Isle of Man (this agreement was signed on 17 July 2019), although they have not yet entered into force. The recent agreements mark a further acceleration of international efforts to implement the standards developed by the OECD`s Global Forum for Transparency and Exchange of Information, which brings together both OECD economies and non-OECD countries to discuss issues related to the implementation of international standards in these areas. The agreement itself provides for the exchange of tax information between the two countries with the aim of increasing transparency, cooperation and accountability in international taxation, principles upheld and proclaimed by the Organisation for Economic Co-operation and Development. The agreement between the two countries will help put Bermuda on the “white list” of Canada`s tax co-op residences, as the signing of the agreement has already led to a significant increase in Canadian companies considering Bermuda a new captive home. Speaking to Tom McMahon, president of the Bermuda Insurance Managers Association, he said the pipeline for the new Canadian company is healthy, with a host of potential creators waiting for the green light for ratification. After a relatively lasy few years with regard to new formations, Bermuda hopes that a signed TIEA will lead to an increase in prisoner arrivals. In this way, jurisdictions will be able to base a bilateral agreement on the competent authority for the purpose of introducing the automatic exchange of information in accordance with the Common Standard of Information or the automatic exchange of country reports on an TIEA, in particular where the automatic exchange of information is not (yet) possible under a relevant multilateral agreement of the competent authority. . . .

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