Bermuda is removed from EU's Annex II

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HAMILTON, Bermuda, Oct. 6, 2022 /PRNewswire/ -- The Ministry of Finance is pleased to report that the Council of the European Union and its Code of Conduct Group determined that the island had fulfilled its recommendations on taxation and was therefore removed from Annex II. 

Referencing the decision, the Council announced that "the commitment of Bermuda with regard to the OECD FHTP recommendations on the effective implementation of substance requirements was deemed fulfilled, resulting in the deletion of the reference to this jurisdiction in the state of play document". 

Premier and Minister of Finance, David Burt said: "Bermuda prides itself on being a transparent jurisdiction and always compliant with EU standards. We committed to addressing the recommendation in Annex II and are pleased with this positive decision. As always, Bermuda remains committed to cooperating with the OECD FHTP and EU Code of Conduct Group (Business Taxation) in implementing tax governance standards."

Background:

Bermuda took steps to address the recommendation issued by the OECD FHTP and, following that in January 2022, as requested by the EU, Bermuda made a formal commitment in that regard,  pending the formal review by the FHTP in April 2022. At the OECD FHTP meeting in April 2022, it was confirmed that Bermuda had met the recommendation, which was then removed. The EU updates its list of jurisdictions who have been required to make a formal commitment for tax purposes twice per year, in February and October. In light of the FHTP's positive decision in April 2022, the EU Code of Conduct Group recommended Bermuda's removal from Annex II at the next relevant Council meeting, which took place on 4 October 2022.

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