Category Taxation in Bahamas

Bahamas Implements VAT

January 5, 2015 Taxation in Bahamas

NASSAU – Value Added Tax has been implement in the Bahamas, despite concerns that it will negatively impact the islands’ poorest citizens.

On January 1st the new VAT system in the Bahamas came into effect with a rate of 7.5 percent, and businesses now have until February 28th to ensure that they are fully compliant with the new system.

The enforcement of the VAT system is accompanied by the removal of several excise duties on goods and products, and the drop of the previous tax on hotel accommodation, with the cumulative changes expected to make tax compliance easier, while, at the same time, making tax evasion harder.

The VAT rate of 7...

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VAT Will Help Bahamas

July 21, 2014 Taxation in Bahamas

BahamasNASSAU – The extra tax revenues that the Bahamas will see after implementing VAT will help the country reduce its budget deficit by 0.5 percent this year alone.

Over the weekend the International monetary Fund issued a statement describing the results of a recent on-site visit of the Bahamas, showing that the national government is making progress towards improving its fiscal position, but the growth is dependent on the smooth implementation VAT in the near future.

According to the IMF, the fiscal deficit in the country has now reached 4.5 percent of GDP, compared to a level of 5.4 percent last year.
If the government does not run into any delays in implementing VAT, over the course of the 2014/2015 fiscal year, the fiscal deficit may drop as low as 4 percent.

If the VAT is implemented ...

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Australia Signs Eight Tax Agreements

April 7, 2010 International Tax CooperationTaxation in AustraliaTaxation in BahamasTaxation in Cayman IslandsTaxation in MonacoTaxation in Turks & Caicos Islands

Sydney Opera House by nightThe Australian Government has signed eight new bilateral Tax Information Exchange Agreements (TIEA) in a concentrated effort to enhance global tax transparency and reduce offshore tax evasion.

On April 6th-7th Senator Nick Sherry, Assistant Treasurer of Australia, announced the signing of TIEA agreements with The Cayman Islands, The Bahamas, Belize, Dominica, Grenada, Saint Lucia, Monaco, and the Turks and Caicos Islands. With the signing ceremonies complete, the TIEAs will be implemented upon the completion of legal ratification by both signatories. The new agreements raise Australia’s TIEA total to 22.

Explaining Australia’s pursuit to expand its TIEA network, Nick Sherry said, “As Chair of the Global Forum on Transparency and Exchange of Information, Australia is playing a leading rol...

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Bahamas Out of Grey List

March 11, 2010 International Tax CooperationOffshore BankingOffshore TaxationTax HavensTaxation in Bahamas

2008 Bahamian Government Buildings, Nassau, BahamasThe Commonwealth of the Bahamas has signed 7 more Tax Information Exchange Agreements (TIEA), bringing its total to 18, enough to be raised from the Organization for Economic Development and Cooperation’s (OECD) Grey List of nations.

On March 10th the OECD announced that the Bahamas, a small Caribbean island nation previously regarded as a tax haven and offshore banking center, has entered into TIEAs with Denmark, Finland, Greenland, Iceland, Norway, Sweden and the Faroe Islands. Having passed the OECD threshold of 12 implemented TIEAs, the Bahamas will now be considered a nation that has substantially implemented the internationally agreed upon standards on taxation transparency...

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