Corporate Services Tax Act 1995

Link to law: http://www.bermudalaws.bm/Laws/Annual%20Laws/1995/Acts/Corporate%20Services%20Tax%20Act%201995.pdf

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Corporate Services Tax Act 1995
The Laws of Bermuda
Annual Volume of Public Acts 1995 : 5

1

17

BERMUDA
1995 : 5

CORPORATE SERVICES TAX ACT 1995

[Date of Assent 22 March 1995]

[Operative Date 31 March 1995]

ARRANGEMENT OF SECTIONS

1 Citation and commencement
2 Interpretation
3 Imposition of corporate

services tax
4 Rate of corporate services tax

5 Time for payment of tax, etc.
6 Provider to register with Tax

Commissioner, etc.
7 Application of Act No 20 of

1976

WHEREAS it is expedient to make provision for the imposition of
a tax on providers of corporate services:

Be it enacted by The Queen's Most Excellent Majesty, by and
with the advice and consent of the Senate and the House of Assembly of
Bermuda, and by the authority of the same, as follows:

Citation and commencement
1 This Act may be cited as the Corporate Services Tax Act 1995
and shall come into operation on 31 March 1995.

Interpretation
2 (1) In this Act, unless the context otherwise requires —

CORPORATE SERVICES TAX ACT 1995

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"the Commissioner" means the person holding the office of Tax
Commissioner;

"corporate services" means any one or more of the following
services that a provider provides to, or on behalf of, an
exempted undertaking, that is to say—

(a) the provision of corporate administrative services;

(b) the provision of corporate management services;

(c) the provision of corporate secretarial services;

(d) the provision of a registered office;

(e) the performance of functions in the capacity of director
where that director is an owner, officer or employee of a
business which is a provider of corporate services;

(f) the performance of functions in the capacity of resident
representative for the purposes of the trade or business
carried on by the exempted undertaking; and

(g) subject to subsection 2(b), the provision of accounting
and financial services;

"corporate services tax" means the corporate services tax
chargeable under this Act and includes a penalty for late
payment of tax;

"exempted undertaking" has the meaning assigned to that
expression by section 2 of the Companies Act 1981;

"provider" includes an individual natural person, a company,
partnership, association, or body of persons, whether
corporate or unincorporate, but does not include an
exempted undertaking;

"resident representative" means a resident representative
referred to in section 130 of the Companies Act 1981, or a
resident representative appointed under section 17 of the
Exempted Partnerships Act 1992 and includes a principal
representative appointed under section 136A of the
Companies Act 1981;

"tax period" means each and every period of three calendar
months commencing with the months of April, May and June
1995.

The Laws of Bermuda
Annual Volume of Public Acts 1995 : 5

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(2) For the purposes of this Act "corporate services" does not
include—

(a) banking business transacted in Bermuda with and
through a bank licensed under the Banks Act 1969;

(b) the audit of financial statements; or

(c) the management of an insurance company by a local
company.

Imposition of corporate services tax
3 Subject to the provisions of this Act, corporate services tax shall
be charged on a provider of corporate services in respect of gross earned
revenue derived from an exempted undertaking to which, or on behalf of
which, such services are provided.

Rate of corporate services tax
4 The rate at which corporate services tax shall be charged
pursuant to this Act shall be four per centum of gross earned revenue.

Time for payment of tax, etc.
5 Every provider chargeable to corporate services tax shall, within
fifteen days after the end of each tax period—

(a) submit to the Tax Commissioner a return specifying the
gross earned revenue derived from the provision of such
services; and

(b) pay to the Tax Commissioner the corporate services tax
due in respect of such gross earned revenue.

Provider to register with Tax Commissioner, etc.
6 (1) A provider of corporate services shall, within thirty days
after the coming into operation of this Act or, within thirty days after
becoming a provider of corporate services, if that happens after the
coming into operation of this Act, apply to the Tax Commissioner, in
such form and manner as the Tax Commissioner shall determine, for
registration under this section, and thereupon the Tax Commissioner
shall register him under this section.

(2) For the purposes of subsection (1) the Tax Commissioner
shall establish and maintain, in such manner as he shall determine, a
register of providers of corporate services.

CORPORATE SERVICES TAX ACT 1995

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(3) A provider of corporate services who fails, without
reasonable excuse, to comply with subsection (1) is guilty of an offence
and liable, on conviction by a court of summary jurisdiction to a fine not
exceeding $1,000.

Application of Act No 20 of 1976
7 The Taxes Management Act 1976 shall, mutatis mutandis, apply
to the provisions of this Act.