(441) 292-5570
48 Church Street, Hamilton Bermuda
48 Church Street, Hamilton Bermuda
292-5570
About Us

New Startups Payroll Tax Relief

About the
New Start-ups
Payroll Tax Relief Program

The Government of Bermuda has pledged to provide new tax relief for entrepreneurs of new startups to assist them in creating new jobs. Therefore, entrepreneurs who register and meet the criteria established by the BEDC in the creation of a new business will be exempt from the employer portion of payroll tax for themselves (if owner-managed or self-employed) and any employees for the first year of business (first four quarters in operation).

This programme applies to all new startup businesses established in Bermuda after April 1st, 2018. This relief only applies to small businesses as per the definition in the BEDC Act 1980.

Businesses that apply to BEDC for a New Start-ups Payroll Tax Relief Letter must provide:

A fully completed application form with required documents including; a copy of a valid ID; a copy of the signed lease agreement; a copy of a utility bill; the list of all employees employed with the business within its f irst year of operation; and any other documents as required that BEDC deems necessary to make
an informed decision about the application.

The details of the New Start-ups Payroll Tax Relief Program are as follows:
  • BEDC’s Officers may conduct site visits to the physical business to confirm the business is legitimately operating.
  • BEDC’s Officers will check with the Office of Tax Commissioner; the Department of Social Insurance; the Registrar of Companies to ensure the business is legally registered and meeting its obligations.
  • BEDC’s Officers, once satisfied with the information provided, make a recommendation for approval or refusal to BEDC’s Executive Director.
  • BEDC’s Executive Director, once satisfied with the information provided, will approve or refuse the application.
  • Upon approval BEDC’s Executive Director issues a Payroll Tax Relief Letter to the attention of the Tax Commissioner for the business and the specified employees of the business. BEDC will provide the approval letter to the applicant and email a copy of the letter to the OTC.
  • Once BEDC receives all required information in the completed application, the approval letter can be issued within 8 business days. The letter will only give the tax relief on the employer portion of payroll tax on the remuneration paid to themselves (if owner-managed or self-employed) and any employees for up to 4 tax periods from the commencement of the business.
  • Please note that BEDC does not back date relief, so any tax periods, if missed, from when the business officially opened would be excluded.
  • Any business that started prior to the commencement date of this programme of April 1st, 2018 will be excluded from obtaining the relief. Any tax periods prior to April 1st, 2018 will also be excluded.
  • For the first tax period in which the business receives the relief letter, the applicant must file manually taking the letter to the OTC office.
  • Ultimately, it is at the discretion of the BEDC and the OTC, based on the information provided and its own investigations, to determine if the business is eligible to be approved for this relief.

This programme applies to all new startup businesses established in Bermuda after April 1st, 2018. This relief only applies to small businesses as per the definition in the BEDC Act 1980.

The BEDC defines a small business as Bermudian – owned and managed; operating locally; having an annual gross payroll not exceeding $500,000 or having annual sales revenues of less than $1,000,000.

Please ensure that you have reviewed the checklist below and have all the necessary information needed to apply.Complete and compile all information below, BEFORE filling out the application.

Completed Application Form
A fully completed application form with required documents must bereceived by BEDC two (2) weeks prior the end of the payroll tax period the applicant is applying for to allow BEDC adequate time for review and processing. Application due dates are as follows: For tax period January to March, applications must be received by March 16th; For tax period April to June, applications must be received by June 16th; For tax period July to September, applications must be received by September 16th; and For tax period September to December, the application must be received by December 16th.
Utility Bill
A copy of a utility bill (or similar document) showing the name and address of the business on it since opening;
Location of Business
A copy of the signed lease agreement that certifies the business’ operating location and lease commencement date;
Identification
Bermuda passport is preferred.
Employees
The list of all employees (and associated posts) employed with the business within its first year of operation;
Social Insurance
The Employer Social Insurance ID Letter from the Department of Social Insurance with the associated Social Insurance numbers for each employee;
Payroll Tax ID Letter
A copy of the Payroll Tax ID Letter from the Office of the Tax Commissioner (OTC). If the business has not yet registered with the OTC, then it will have to do so through this process. If the business is not operating yet, then no letter from the OTC is needed at this point;
Certificate of Incorporation
If an incorporated company, a copy of the Certificate of Incorporation must be submitted;
LLC Agreement
If an LLC, a copy of the LLC Agreement must be submitted;
E-Commerce Business
If an online business or e-commerce business only (e.g. no physical location), the business must provide the website address, NIC registration documentation, and verification of its first transaction
Bank Statement
A copy of the first month of the business bank account statement showing the account opening date for the new business.
2
Submit Business Profile
Submit your Business Profile. Once you hit submit, one of our officers will vet your information and add it to our register. You will then be given your BEDC Member #, Business Register #, Vending License # (if applicable). This can take up to 2 business days.
4
Submit Application
Navigate to New Start-ups Payroll Tax Relief Application Form in the BEDC Member Portal. Fill out the application form, supplying us with all information and documents required. Before beginning your application, please take note of the product checklist that outlines all information needed in order to process your application.
6
Application Approval
After your application has been processed, it will be submitted for approval. If your application is approved you will be notified, the product will be issued to your account and funds will be disbursed (if applicable). *Applications will be processed within 15 business days of BEDC receiving of ALL necessary information and requirements.