29/05/23

BERMUDA: Global minimum tax rules are topic number one, according to PwC.

As published on reinsurancene.ws, Friday 26 May, 2023.

The introduction of rules to enforce a global minimum tax rate for large enterprises, which will include many insurance and reinsurance firms, is the highest priority topic for most tax leaders, according to Scott Slater of PwC Bermuda.

Scott Slater is a a Partner and the Tax Services Leader at PwC Bermuda. He also leads PwC in the Caribbean’s International Tax Services group, which is based in Bermuda and the Cayman Islands.

Speaking with our sister publication as part of the Artemis Live series of video interviews, Slater explained that the global minimum tax rule introduction remains the key issue for most people.

“This is certainly topic number one, across most tax directors, as well as other tax professionals,” Slater said.

Discussing the upcoming Global Anti-Base Erosion (GloBE) Minimum Tax – Pillar 2 rules, that are designed to ensure large multinational enterprises pay a minimum level of tax on the income arising in each jurisdiction where they operate, Slater explained some of the complexities they introduce.

“The rules are still kind of in proposed form, each country has to bring in these rules individually, albeit there’s kind of a template set of rules that the OECD has produced for how countries should go about bringing this in, or at least considering bringing it in.

“So it is still in flux, albeit that, you know, 2024 is not far away for these to come in and it’s kind of a whole new tax system,” Slater commented during the interview.

Slater went on to discuss how he and his team help clients in Bermuda and elsewhere in establishing tax structures that work for their insurance, reinsurance and also insurance-linked securities (ILS) needs.