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New Start-Ups Payroll Tax Relief

New Start-Ups Payroll Tax Relief

About the New Start-ups Payroll Tax Relief Programme

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).

A Few Details

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 first year of operation; and any other documents as required that BEDC deems necessary to make an informed decision about the application.

Who Can Apply?

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.

New Start-Ups Payroll Tax Relief Checklist

Click here to view checklist as a guide please complete the following:

  • Application
    • Submit a complete application form
    • Must be filled out completely, accurately and signed by all owners of the business if more than one owner
  • Valid Identification
    • Demonstrates that the applicant is Bermudian.
    • If non-Bermudian is a partner, the Bermudian must hold the controlling interest and a copy of the partnership agreement must be submitted.
  • Signed Commercial Lease
    • This can highlight the commencement of business and physical location.
    • If home business some documentaiton tying business to location.
  • Utility Bill or Other Mailing showing Business Address
    • This can verify the business is operating from the utility bill address
  • List of Employees
    • This highlights how many employees the business has at the time applying for the payroll tax relief
  • Dept of Social Insurance Employer ID Letter
    • This verifies the business is registered with DOSI and any employees
  • Office of the Tax Commissioner’s Payroll Tax ID Letter
    • This verifies the business is registered with OTC
  • Registrar of Company Certificates
    • This verifies the business is either registered as a LTD/Limited of LLC
  • Website Address and NIC Documentation
    • If an online or e-commerce business only this verifies the business is operating
  • Bank Statement
    • Client to supply 1 month’s business bank account statement from the commencement of the account
    • This can verify the business is operating