Argus Informs Clients How 3.5% Government Financial Services Tax Affects Them

The following letter was sent out on Wednesday, April 17, 2019 by The Argus Group shortly after 12 noon today

IMPORTANT NOTICE – BERMUDA GOVERNMENT FINANCIAL SERVICES TAX INCREASES TO 3.5%

As stated by the Minister of Finance in the recent 2019 Budget Speech, effective May 1^st, 2019, the Bermuda Government has increased the Financial Services Tax (FST) on all domestic insurance premiums, excluding health, from 2.5% to 3.5%. This means that as of the effective date, the total amount you will now have to pay must be increased in accordance with the Bermuda Government’s directions. Argus is obliged to collect the FST and forward the full amount received in excess of your premium directly to the Bermuda Government.

How does this affect you?

Effective May 1^st, 2019, the total amount payable whether in monthly, quarterly or yearly installments will increase by exactly 1%, to reflect the 3.5% tax. For example, a home insurance premium of $1,000, which previously cost you a total of $1,025 will now cost $1,035. This is comprised of the base premium of $1,000, which does not change as a result of the tax, and $35 representing the tax payable to the Bermuda Government.

If you have any additional questions or would like to discuss our multi-policy discount opportunities, please contact us on (441) 298-0888 or at insurance@argus.bm.