Bermuda signs 28th TIEA with South Africa

By added on 07/09/2011

Premier and Minister of Finance Paula Cox signed a Tax Information Exchange Agreement [TIEA] with South Africa, marking Bermuda’s 28th TIEA signing, reports Bernews.

Premier Cox said, “Today I signed a Tax Information Exchange Agreement (TIEA) with the Republic of South Africa. South Africa’s Minister of Finance the Hon. Pravin Gordhan signed the TIEA in South Africa and the Agreement was then couriered to Bermuda for signature.

“The Joint Declaration by our two Governments refers to the broadening of the political and economic relationship between South Africa and Bermuda.

“In the Joint Declaration, the Government of the Republic of South Africa welcomes Bermuda as a member of the community of nations committed to international cooperation and information exchange on tax matters, and affirms that Bermuda will be treated accordingly by the South African authorities.

“Following the entry into force of this Agreement, South Africa and Bermuda will continue to examine what further measures can be adopted to further enhance our political and economic relationship, including further clarification of elements of double taxation, discrimination and other undesired tax barriers, investment protection and mutual recognition of our recognised stock exchanges.

“The CEO of the Bermuda Stock Exchange is scheduled to visit South Africa later this year to attend the World Federation of Exchanges Annual General Meeting in Johannesburg.

“So there are real opportunities for Bermuda to benefit in a tangible sense from this new level of relationship with South Africa. South Africa is an economic powerhouse and the only country on the African continent that is a member of the G-20. This TIEA marks Bermuda’s 28th agreement for the exchange of information for tax purposes.

“This TIEA with South Africa not only benefits our international business sector by enhancing our reputation in the global financial services market, but also, it opens a window of opportunity to discuss further cooperation that can more directly benefit our domestic and international businesses, including providing increased opportunities for direct foreign investment. This is, in addition to seeking mutual recognition for our local stock exchange.”