TIEA for Bermuda and Portugal

By added on 11/05/2010

Bermuda today signed a bilateral agreement with the Portuguese Republic that provides for a full exchange of information on criminal and civil tax matters between Bermuda and the Portuguese Republic, Earth Times reports. The signing of the tax information exchange agreement (TIEA) took place at a ceremony today at the Premier's official residence at Camden. The TIEA was signed by the Hon. Paula A. Cox, J.P., M.P., Minister of Finance and Deputy Premier, and Portuguese Republic Secretary of State for Fiscal Affairs, Professor Sérgio Vasques.

Amongst those benefits accrued for Bermuda within the TIEA is the provision that Bermuda will be removed from the Portuguese Republic's list of tax havens upon the TIEA entering into force.

This provision exempts Bermuda from several domestic rules concerning tax havens including punitive measures that apply to listed countries, such as the application of CFC rules, expense deduction rules, special tax rules, and capital gains realised by non-resident entities, amongst others.

This agreement marks Bermuda's 21st signed agreement, with provisions for the exchange of information for tax purposes.

Bermuda's TIEA with the Portuguese Republic includes all standard means to ensure due process is followed in tax information requests to Bermuda, including, for example, provisions to protect the confidentiality of information provided, as well as adhering to public policy, provisions related to protecting legal privilege, and anti-fishing provisions to ensure that requests for information from Portugal are relevant to on-going tax investigations being conducted by Portuguese authorities.