Kiniksa Pharmaceuticals Proposes Redomiciling to UK Amid Bermuda Tax Changes

Bermuda-based Kiniksa Pharma plans to redomicile to UK due to Bermuda's new corporate income tax, highlighting the impact of changing tax policies on multinational companies' decisions.

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Dil Bar Irshad
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Kiniksa Pharmaceuticals Proposes Redomiciling to UK Amid Bermuda Tax Changes

Kiniksa Pharmaceuticals Proposes Redomiciling to UK Amid Bermuda Tax Changes

Kiniksa Pharmaceuticals Ltd, a biopharmaceutical company currently based in Bermuda, has announced plans to change its place of incorporation to the United Kingdom. The company cited Bermuda's recent decision to introduce a corporate income tax as one of the primary reasons for seeking the move.

Under the proposed scheme of arrangement, Kiniksa would redomicile to the UK, subject to approval by the company's shareholders and the Supreme Court of Bermuda. The court has set June 5, 2023 as the date for a virtual shareholders' meeting to vote on the matter.

Bermuda's Corporate Income Tax Act 2023, which largely comes into effect on January 1, 2025, will apply to businesses that are part of multinational enterprise groups with annual revenues of €750 million (approximately $800 million) or more. The introduction of this tax has prompted Kiniksa to reevaluate its corporate structure and consider alternative jurisdictions.

Why this matters: Kiniksa's proposed redomiciling highlights the impact of changing tax policies on corporate decision-making. As countries adapt their tax regimes, multinational companies may seek to relocate to jurisdictions that offer more favorable business environments.

If approved, Kiniksa's redomiciling to the UK would involve a transfer of the company's legal domicile while maintaining its operations and business structure. The company has not provided further details on the potential implications for its employees or any changes to its operational strategy following the move.

Key Takeaways

  • Kiniksa Pharma to redomicile from Bermuda to UK due to new corporate tax
  • Shareholders to vote on June 5 on proposed scheme of arrangement
  • Bermuda's new corporate tax applies to multinationals with €750M+ annual revenue
  • Redomiciling aims to maintain Kiniksa's operations and business structure
  • Outcome may impact Kiniksa's access to talent, R&D, and European markets