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Taxation

Taxes in the Bahamas

The Bahamas has absolutely no personal income tax, no corporate income tax, no capital gains tax, and no inheritance tax. (HOO-RAY!)

Presently there is no direct taxation, i.e. on capital gains, corporate earnings, personal income, sales, inheritance or dividends. Though their now is a stamp tax of 7% on goods imported for business use. The absence of income, corporate, and inheritance taxes means that import duties are the main source of Bahamas government revenue.

As a result, tariff rates are very high; the Bahamas raises some 65 percent of its revenues from import tariffs. The general rate of duty charges on imports is 32 percent, though there are numerous exemptions (for example the duty rate on computer equipment is 0%). In 1998, the government eliminated duties on computer software, discs, and some medical goods. In 2000 it eliminated duties on all computer hardware. This duty can be considered a tax.

There is also licensing fee for businesses which can also be considered a “tax” as this license fee can vary with earnings (“gross receipts”).

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