Bermuda and Japan finalise TIEA

By added on 02/02/2010

Finance Minister Paula Cox, on behalf of Bermuda, signed a bilateral agreement with Japan this morning, the Bermuda Sun is reporting.

The agreement provides for a full exchange of information on criminal and civil tax matters between the two countries.

The signing of the tax information exchange agreement (TIEA) took place at a ceremony today at the Japanese Embassy in London. It was attended by Ms Cox and Sumio Kusaka, Charges d'affaires ad interim, who signed the agreement for Japan.

Among the benefits accrued for Bermuda within the TIEA is a clause for Prohibition of Prejudicial or Restrictive Measures and a mini Double Taxation Agreement which provides benefits for students and pensioners.

Following the signing, Minister Cox commented on the diligent efforts of Bermuda, saying, "I am delighted today to sign the tax information exchange agreement with Japan, and particularly pleased to note that Bermuda is Japan's first TIEA partner. Negotiations with Japan were concluded in Bermuda in June 2009.

"As the first country with which Japan negotiated with, the Japanese delegation stated at that time that Japan intended to use the product of its negotiations with Bermuda as a model for all future negotiations with other financial centres for TIEAs. This was a tremendous compliment for Bermuda, which is looked to as a most respected and advanced financial jurisdiction with which a country can base its work.

"Already approximately 20-25% of Japanese Property Cat business is placed in Bermuda, as well as 5% of Property Pro-Rata business. With over 100 companies in Bermuda with Japanese interests, we see this agreement as enhancing opportunities for further foreign direct investment between our two countries and a great step forward in cementing the relationship between Bermuda and Japan.”

Ms Cox continued: "Bermuda currently works alongside Japan as members of the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes in our respective roles as Vice-Chair of the Steering Group and Vice-Chair of the Peer Review Group. It will be our immense pleasure to welcome the Japanese delegation to Bermuda for the 2011 Global Forum."