Bermuda Budget 2017 Snapshot

Keep us moving forward The Hon. E.T (Bob) Richards

In delivering the 2017 Budget Statement, Minister Richards stated the aim was to press every button, pull every lever and
work every angle to restore Bermudas economic health and extend recovery into every home and give people hope for better
days.Also stated were plans for a comprehensive reform of Bermudas tax system through broadening the tax base and
creating a more equitable overall tax structure.

Cumulative Deficits 2018 2020

Revenues & Expenditures 2018 2020
2006 2008 2010 2012 2014 2016 (Forecast) (Forecast) 2006 2008 2010 2012 2014 2016 (Forecast) (Forecast)
2,750,000 1,300,000
2,500,000 1,250,000
2,250,000 1,200,000
2,000,000
1,150,000
In Thousands
In Thousands

1,750,000
1,100,000
1,500,000
1,050,000
1,250,000
1,000,000
1,000,000
950,000
750,000
900,000
500,000

250,000 850,000

- 800,000
Source: Bermuda Source: Bermuda Government
Cumulative Deficits Government Budget Expenditures Revenue Budget Statements & Deloitte
Statements & Deloitte

Payroll Tax
Introduction of bands:

Salary Employee Employee Employee Employer

Current Rate 2017-18 Rate 2018-19 Rate Rate*
$48,000 6% 4.75% 4.25% 10.25%
$48,001 - $96,000 6% 5.75% 5.50% 10.25%
$96,001 - $235,000 6% 7.75% 9.00% 10.25%

$235,001 - $900,000 6% 8.75% 11.00% 10.25%

*Annual employer payroll > $1,000,000 (2016: 9.5%)

Payroll Tax cap increase from $750,000 to $900,000

Financial Services Tax General Services Tax (GST)

Effective April 1, 2017 No changes in proposed scope - levied on most
Tax on banks, local insurance and money service services by service providers to the public
businesses Consultation process will continue
0.02% tax on banks assets Will not be implemented prior to April 1, 2018
2.5% of non-health gross premiums earned
For money service businesses, tax of 5% on aggregated
incoming and outgoing transmission volume

Government Budget Other

2017/18 deficit to be $135 million Annual Government fees on Permit Companies that fall
2017/18 interest on debt of $186 million into the class of investment/ holding/trading from $1,995
Current account surplus of $119 million to $25,000
Land taxes unchanged
Fuel taxes to increase by 5 cents per litre
Tourism
Alcohol and cigarette taxes to increase
Total arrivals increased by 11%
Imposed excise duties to increase
Hotel occupancy increased by 10%
Air and cruise visitor spending increased by 18%

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