Bermuda sign tax deals with Brazil and Singapore

MONDAY, OCTOBER 31: Bermuda signed Tax Information Exchange Agreements with Singapore and Brazilon Monday.

It is the 37th and 38th tax agreements it has signed with other countries.

The signings took place in London.

A Government spokesperson said the TIEA with Singapore “is significant for Bermuda as it solidifies Bermuda’s relationship within the Asian South Eastern Pacific region and allows for greater diversification of Bermuda’s international business sector as Bermuda now has tax agreements with the Republic of Singapore, Malaysia, and Indonesia.”

Wayne Brown, assistant financial secretary, signed the document on behalf of Bremuda.

Mr Brown said in a press release that “Bermuda and the Republic of Singapore has always enjoyed a solid economic relationship as there are natural synergies between the two island states in that our size, location, and regulatory framework allow us rapid access to international markets. 

“As such, one of our key industry stakeholders known as Business Bermuda recently conducted a survey that named Singapore as Bermuda’s leading Asian economic partner driven by shipping and the insurance sectors and we look forward to strengthening that relationship.

“The signing of this Tax Information Exchange Agreement (TIEA) allows Bermuda to utilize this opportunity to officially recognize our partnership within the International Business community and publicly demonstrate our shared commitment to implementing the Global Forum on Exchange Information for Tax Purposes’ internationally agreed tax standard, exchange of information by request, of which Bermuda is one of the vice chairs.” 

Mr Borwn said the Brazil agreement “was a major development  for both countries.  Also the signing of this tax agreement creates a foundation for dialogue in other areas of mutual interest to promote business development. 

“The TIEA also underpins the current economic relationship enjoyed by both countries as there are many entities with Bermuda that currently have business relationships in Brazil and encourages more business investment from Brazil going forward.

The president and executive director of the Association of Bermuda Insurers and Reinsurers Brad Kading, praised the Bermuda Government for completing the TIEA with Singapore.

“Singapore is the new hub for building our Asian market insurance operations and as such it is very important to have cooperative measures in place between our two governments.  

“Asia includes the biggest growth economies for the 21st century. Nine ABIR members have operations in Singapore today and more are intent on investigating market opportunities. Regulatory and tax cooperation agreements should be mutually beneficial to the jurisdictions and ABIR members alike.”

With regard to Brazil, Mr Kading said: “Five ABIR members have licensed Brazilian insurers in operation today. More do business with representative offices and others do business on a cross-border basis. 

“ABIR members offer great capacity to meet the needs of Brazil’s burgeoning economy and have expertise in special insurance markets such as energy which are critical to Brazil’s future.  We commend the Bermuda Government for its work with Brazil on the TIEA and we hope more can be done to open the Brazilian reinsurance markets to fulfill the true promise of competitive markets which will benefits Brazil’s citizens and businesses.”