In a move that could affect how companies register overseas, Bermuda has signed a bilateral agreement with China that provides for a full exchange of information on tax matters between the two countries.
The Tax Information Exchange Agreement was signed earlier this month by Premier and Minister of Finance the Hon. Paula A. Cox J.P., M.P., and Wang Li, deputy commissioner of China's State Administration of Taxation.
Following the signing, Premier Cox commented on the achievement: "I am delighted today to sign this Tax Information Exchange Agreement with the People's Republic of China. This treaty is a significant step forward in cementing political and economic ties between Bermuda and China. Bermuda already works very closely with the People's Republic of China as a fellow vice chair of the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes and we very much look forward to welcoming Mr. Wang Li and the members of the Chinese delegation back to Bermuda this Spring when we host the 2011 Global Forum."
"Currently, there are 680 entities in Bermuda with a Chinese interest," the Premier continued. "In the negotiation of this TIEA a framework was established for deepening economic and commercial relations between our two jurisdictions and in facilitating our outreach to other markets within Asia. Both the independent regulator, the Bermuda Monetary Authority, and the Bermuda Stock Exchange, an internationally recognized stock exchange, following this advancement will be using this opportunity to discuss further cooperation with their regulatory counterparts in China."