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Bahamas: Domestic Corporate Taxation

Business Licence Fees

Under the Business Licenses Act 1980 (as amended) enterprises operating in the Bahamas are liable to pay annual license fees. Non-resident entities, International Business Companies, Limited Duration Companies and Exempted Limited Partnerships are not liable for these fees; nor are banks, trust companies, insurance companies, mutual funds or ship holding companies, all of which have their own separate fee regimes (see Offshore Legal and Tax Regimes).

Business License Fees depend on annual turnover and gross profit percentage; the rules are complicated and professional advice is necessary. Some illustrative situations are as follows:

  • Businesses with turnover below BSD50,000 pay BSD100 annually;
  • Businesses with turnover between BSD50,000 and BSD500,000 pay 0.5% of turnover;
  • Larger businesses with turnover exceeding BSD500,000 pay 0.75% of turnover;
  • Banks and Trust Companies pay tax on a sliding scale depending their assets.

 

 

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