On 13 March 2023, Bermuda's Parliament approved the Payroll Tax Amendment Act 2023, which provides for the payroll tax changes announced as part of the Budget Statement for 2023/2024. The changes are summarized as follows:

• The maximum level of remuneration that is subject to payroll tax is increased from BMD 900,000 to BMD 1,000,000;
• For employee payroll tax, the bands and rates are changed from four to five as follows:
  • up to BMD 48,000 - 0.5%
  • BMD 48,001 to 96,000 - 9.25%
  • BMD 96,001 to 200,000 - 10.0%
  • BMD 200,001 to 500,000 - 11.5%
  • BMD 500,001 to 1,000,000 - 12.5%
• For employer payroll taxes, the rates for the following are adjusted:
  • employers with an annual payroll of less than BMD 200,000 - 1.00% (reduced from 1.75%);
  • employers with an annual payroll of BMD 200,000 to BMD 350,000 - 2.50% (reduced from 3.50%);
  • employers with an annual payroll of BMD 350,000 to BMD 500,000 - 5.25% (reduced from 6.50%);
  • employers with an annual payroll of BMD 500,000 to BMD 1,000,000 - 7.50% (reduced from 9.0%);
  • employers with an annual payroll over BMD 1,000,000 - 10.00% (reduced from 10.25%);
  • employers operating a hotel with an annual payroll of more than BMD 350,000 - 5.00% (reduced from 6.0%);
  • employers operating a restaurant with an annual payroll over BMD 350,000 - 5.00% (reduced from 6.0%);
  • employers operating a qualifying retail store - 6.00% (reduced from 7.00%);
  • educational, sporting, or scientific institutions, associations, or societies - 1.00% (reduced from 1.75%);
  • self-employed persons carrying on business as a fisherman or a farmer - 0.00% (reduced from 1.75%); and
  • self-employed persons carrying on business as a horticulturist - 1.75% (new category, previously grouped with self-employed fishermen and farmers).

The Act must now be published in the Official Gazette and will enter into force on 1 April 2023.