Bermuda Concludes Tax Information Agreement with Belgium

Bermuda’s Minister of Finance, the Hon. Paula A. Cox, announced that Bermuda had concluded negotiations of a bilateral agreement with Belgium that provide for a full exchange of information on criminal and civil tax matters between Bermuda and the Kingdom of Belgium.

The negotiations took place December 2nd in Brussels, Belgium, at the Ministry of Finance. Bermuda’s negotiating team included Assistant Financial Secretary, Wayne Brown, and Treaty Advisor, Laura Semos.

The tax information exchange agreement (TIEA) is a commitment by Belgium to conclude a series of mini double taxation agreements with Bermuda. It also contains a provision that the Belgian government states “Bermuda does not engage in harmful tax practices, nor is it considered by Belgium to be a tax haven.”

Cox commented: “Bermuda’s proposed treaty with Belgium is one more example of Bermuda moving swiftly to expand upon its role in the global financial network, to strengthen and deepen its relationships with other financial centers, and to exceed the expectations of international bodies such as the Organization for Economic Cooperation and Development (OECD).

“In addition to concluding negotiations with Belgium, this week Bermuda is acting as Co-Chair of the OECD Global Forum Steering Group in Paris,” she continued.

David Ezekiel, Chairman of the Association of Bermuda International Companies (ABIC) noted: that the conclusion of TIEA negotiations with Belgium is another significant step forward for Bermuda’s regulatory regime and is especially meaningful given the already substantial involvement of Belgian companies in Bermuda’s financial sector. “The success of our Ministry of Finance in concluding another important TIEA is heartening and bodes well for the future of this important sector of Bermuda’s business landscape, he added.

Bradley Kading, President and Executive Director of the Association of Business Insurers and Reinsurers (ABIR), agreed with Ezekiel’s comments. He also noted that the Bermuda/Belgian TIEA formalizes a practice of transparency and cooperation that Bermuda seeks with its major trading partners. ABIR members provide an estimated 30 percent of the broker placed coverage for catastrophic windstorm and flood reinsurance protection purchased by Belgian insurers. In addition our members’ European subsidiaries write approximately 8 percent of the Belgian broker placed reinsurance business. Four ABIR members have licensed subsidiaries in the country..

Cox intends to sign with Belgium immediately following the conclusion of Belgium’s internal approval process. Currently, Bermuda has eighteen signed tax TIEAs with the following members of the G7: France, Germany, the United Kingdom, and the United States. In addition, Bermuda has TIEAs with Australia, Ireland, New Zealand, the Netherlands, the Nordic Group (including Denmark, Finland, Iceland, Norway and Sweden and their associated territories the Faroe Islands and Greenland), Netherlands Antilles and Aruba, and Mexico. Negotiations have been concluded with, among others, Canada, Japan, and Spain, with these agreements anticipated to be signed in early 2010.”

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