Corporate Income Tax Rate       (%)0 

Capital Gains Tax Rate                (%)0 

Branch Tax Rate                           (%)0 

Withholding Tax                           (%)0

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No taxes are levied on corporate income or capital gains.

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FOREIGN EXCHANGE CONTROLS 

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Corporations doing business in the Bahamas fall into the categories of resident or nonresident.

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A resident company is a company that deals in or holds assets in the Bahamas. Business is carried out in Bahamian dollars. All transactions requiring foreign currency need prior approval of the Central Bank of the Bahamas to convert Bahamian dollars into another currency.

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A nonresident company is one whose shareholders are not designated residents of the Bahamas and whose principal business activity takes place outside the Bahamas. Bank accounts in all currencies other than the Bahamian dollar can be operated free of any exchange controls. Shares of nonresident companies incorporated under the Companies Act cannot be transferred without the prior permission of the Central Bank of the Bahamas. Exchange-control regulations generally do not apply to companies incorporated under the International Business Companies Act.

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Nonresident companies are subject to an annual fee of BSD300.

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TAX TREATIES

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The Bahamas does not have any existing tax treaties. The Bahamas has entered into tax information exchange agreements with various countries.

On 3 November 2014, the Bahamas and the United States signed and released a Model 1 Intergovernmental Agreement (IGA) for the implementation of the US Foreign Account Tax Compliance Act (FATCA).

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The Bahamas has committed to adopting the Organisation for Economic Co-operation and Development Common Reporting Standard (CRS) and is expected to report for the first time in 2018 for the reporting year ended 31 December 2017.

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Bahamas institutions will be required to comply with both FATCA and CRS in accordance with the Bahamas tax law regulations that are enacted.

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To continue reading, and to obtain the full publication, please visit: https://www.ey.com

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The content is based on information current as of 1 January 2018, unless otherwise indicated in the text of the chapter. Changes to the tax laws and other applicable rules in various countries covered by this publication may be proposed. Therefore, readers should seek independent tax advice from their local and international firms to obtain further information.

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This publication contains information in summary form and is sourced from the Ernst & Young Worldwide Corporate Tax Guide, and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither Aston & Willson or EYGM Limited nor any other member of an organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.