General

Foreign Currency Purchase Tax is charged under the authority of the Foreign Currency Purchase Tax Act 1975.

Scope

This tax represents a charge on foreign currency purchased by a resident from a local bank and is payable at the rate of .50%.

Exemptions

Transactions by the following bodies are exempted from Foreign Currency Purchase Tax:-

• the Government of Bermuda
• the Bermuda Monetary Authority
• the Bermuda Housing Corporation
• a bank
• a deposit company licensed under the Deposit Companies Act 1974
• a credit union registered under the Credit Unions Act 1982
• a trust company licensed under the Trust Companies Act 1991

being as respect any such body, a transaction undertaken by that body for its own account.

Payment

Payment must be made at the end of every calendar quarter.

Penalties

Any bank which knowingly fails to collect and remit any Foreign Currency Purchase Tax commits an offence which is punishable on summary conviction by a fine of $5,000 or triple the amount of the tax payable, whichever is greater.

Note

The information contained on this page is merely a guide for the taxpayer and is not a comprehensive statement of the Legislative requirements. These requirements are contained primarily in the Foreign Currency Purchase Tax Act 1975.  Bermuda Laws Online can be accessed at www.bermudalaws.bm. 

Enquiries

Further enquiries may be made by contacting us.

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