• Bahamas Tax System

  • GENERAL

    The Bahamas does not levy corporation tax.

  • TAX RESIDENCY

    Tax Residency

    Not applicable since there is no corporation tax in The Bahamas.

    Taxable Basis

    Not applicable since there is no corporation tax in The Bahamas.

  • TAX ADMIN

    Taxable Period

    Not applicable since there is no corporation tax in The Bahamas.

    Tax Returns

    There is no requirement for companies in The Bahamas to file a tax return since The Bahamas does not levy corporation tax.

    Tax Assessments

    Not applicable since there is no corporation tax in the Bahamas.

  • CORPORATION TAX

    Corporation Tax

    The Bahamas does not levy corporation tax.

  • DIVIDENDS

    Dividends from Foreign Investments

    Dividend income from foreign investments is not taxable in the Bahamas.

    Dividends from Local Investments

    Dividend income from local investments is not taxable in the Bahamas.

    Withholding Tax on Dividends

    There is no withholding tax on dividend payments to local or foreign recipients.

  • INTEREST

    Interest Income

    Interest income is not taxable in The Bahamas.

    Interest Expense Deductibility

    Interest expense is not tax deductible since interest income is not taxable.

    Withholding Tax on Interest

    There is no withholding tax on interest payments to local or foreign recipients.

  • ROYALTIES

    Royalties

    Royalty income is not taxable in The Bahamas.

    Royalty Expense Deductibility

    Royalty expense is not tax deductible since royalty income is not taxable.

    Withholding Tax on Royalties

    There is no withholding tax on royalty payments to local or foreign recipients.

  • TAX LOSSES

    Ordinary Tax Losses

    Not applicable since there is no corporation tax in The Bahamas.

    Group Relief

    Not applicable since there is no corporation tax in the Bahamas.

  • CAPITAL GAINS

    Disposal of Shares by Foreign Shareholder

    The gain on the disposal of a Bahamian company by its foreign corporate shareholder is exempt from tax in The Bahamas, unless the company holds Bahamian real estate in which case stamp duty applies (see below).

    Capital Gains

    Capital gains are not taxable in The Bahamas.

    Capital Losses

    Capital losses are not tax-deductible since capital gains are not taxable.

  • PARTNERSHIPS

    Partnership Profits

    Partnerships are treated as transparent entities for tax purposes, which means that their profits are taxed directly in the hands of each partner.

  • BRANCHES

    Branch Profits

    A Branch is treated in the same manner as other types of companies in The Bahamas.

    There is no remittance tax on profits transferred by a Bahamian Branch to its foreign head office.

  • STAMP DUTY

    Stamp Duty

    Authorized Capital:

    Authorized capital of a company is subject to the stamp duty as follows:

    • B$100 on the first B$5,000 of authorized capital.
    • B$3 for every additional B$1,000 of authorized capital.

    Increases of capital are also subject to stamp duty at B$3 per B$1,000 or any portion thereof.

    Bahamian International Business Companies (IBCs) are exempt from stamp duty on the issue of share capital.

    Stamp duty is also levied on the sale of Bahamian real estate or upon transfer of shares of companies whose underlying assets comprise Bahamian real estate. The following rates apply:

    Consideration Stamp Duty
    B$0 - B$20,000 4%
    B$20,001 - B$50,000 6%
    B$50,001 - B$100,000 8%
    Over B$100,001 10%
  • CAPITAL DUTY

    Capital Duty

    There is no capital duty in The Bahamas.

  • VAT

    VAT Standard Rate

    The Bahamas does not currently levy VAT. However, a proposed VAT system may be introduced from 1 January 2015. Proposed VAT system of Bahamas →

  • OTHER TAXES

    Real Property Tax

    Real property tax is levied annually to owners of land and buildings in The Bahamas as follows:

    Asset Value Commercial Property Owner-occupied Property
    B$0 - B$50,000 0.5% 0%
    B$50,000 - B$100,000 1% 0.75%
    Over B$100,001 1.5% 1%