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Bahamas: Offshore Legal and Tax Regimes

Tax Treatment of Offshore Operations

In the Bahamas there is no income or corporation tax, no capital gains tax, no VAT or sales tax, and no withholding tax. Companies and partnerships pay annual fees to the Government depending on their nature and capitalisation. There is stamp duty and there are some property taxes. Exempted Limited Partnerships are exempt from both, as are Trusts provided that their beneficiaries are non-resident. Banks and Trust Companies (ie administrators of trusts) are also exempt provided that they have non-resident licenses (this is a matter of practice - a license is issued as resident or non-resident depending on circumstances). All of the offshore entities, and non-resident domestic companies, are exempt from exchange controls. Mutual Funds are exempt from taxes and exchange controls if they have an appropriate corporate form; in practice therefore they are exempt. For further details of stamp duty and property taxes see Domestic Corporate Taxation.



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