The European Union has declared that Bermuda reformed its tax system in line with that entity’s requirements, and has accordingly removed that jurisdiction from its “grey list” of non-cooperative jurisdictions for tax purposes.

Such new revision relates to an analysis by the OECD’s Forum on Harmful Tax Practices, which in 2021 indicated that Bermuda was still not effectively reviewing requirements by the OECD and the EU defined for guaranteeing that jurisdictions will not use low rates of corporate income tax to attract profits without real economic activity.

Bermuda’s government welcomed the decision and expressed that their jurisdiction “remains committed to cooperating with the OECD FHTP and EU Code of Conduct Group in implementing tax governance standards”.