Bahamas
Corporate Taxation

The Bahamas offers several significant corporate taxation advantages, making it an attractive jurisdiction for businesses and investors. Here are the primary corporate taxation benefits:

No Corporate Income Tax

Zero Corporate Tax: One of the most significant advantages of incorporating in the Bahamas is the complete absence of corporate income tax. Companies registered in the Bahamas do not pay taxes on their profits, regardless of the source or the amount.

No Capital Gains Tax

Tax-Free Capital Gains: There is no capital gains tax in the Bahamas. This means that any profits made from the sale of assets, such as real estate, stocks, or other investments, are not subject to taxation.

No Dividend Tax

Tax-Free Dividends: Dividends paid by a Bahamian company to its shareholders are not taxed. This is particularly advantageous for holding companies and investors who want to maximize returns on their investments.

No Wealth Tax

No Net Worth Tax: The Bahamas does not impose any wealth tax or net worth tax on individuals or corporations. This can be particularly beneficial for high-net-worth individuals and family offices managing substantial assets.

No Personal Income Tax

Tax-Free Personal Income: In addition to corporate tax benefits, the Bahamas does not have a personal income tax. This is advantageous for company directors, shareholders, and employees who reside in the Bahamas, as their income from the company is not taxed.

No Inheritance, Estate, or Gift Tax

No Transfer Taxes on Inheritance or Gifts: The Bahamas does not levy inheritance, estate, or gift taxes. This makes it a favorable jurisdiction for estate planning and wealth transfer strategies.

No VAT on International Services

Zero VAT on Exports of Services: The Value Added Tax (VAT) in the Bahamas is primarily applied to goods and services consumed within the country. International services, such as consulting or digital services provided to clients outside the Bahamas, are typically exempt from VAT.

Exemption from Import Duties

Duty-Free Imports for Certain Activities: Certain industries, especially those involved in tourism, manufacturing, and shipping, can benefit from exemptions or reductions in import duties, further reducing operational costs.

No Withholding Tax

No Withholding Tax on Payments: The Bahamas does not impose withholding tax on payments made to non-residents, such as dividends, interest, or royalties. This is particularly beneficial for international businesses and investors who want to repatriate profits without tax penalties.

Tax Neutrality

Neutral Tax Environment: The Bahamas offers a tax-neutral environment, meaning that it does not impose taxes on foreign-sourced income. This is particularly attractive for multinational companies that generate income globally.

No Exchange Controls

Freedom of Capital Movement: The Bahamas has no exchange controls, allowing businesses to freely move funds in and out of the country without restrictions. This flexibility is crucial for international businesses managing global operations.

Favorable Tax Treaties

Double Taxation Agreements (DTAs): Although the Bahamas does not levy taxes on income, it has entered into several tax information exchange agreements (TIEAs) and double taxation agreements (DTAs) with other countries. These agreements can help prevent double taxation for businesses operating in multiple jurisdictions.

Stability and Predictability

Consistent Tax Policy: The Bahamas has a long history of maintaining a stable and predictable tax regime, which provides certainty for businesses planning their long-term strategies.

Bahamas offers a highly favorable corporate taxation environment, characterized by the absence of corporate income tax, capital gains tax, and other common taxes. These advantages, combined with a stable and business-friendly environment, make the Bahamas an attractive location for companies looking to optimize their tax liabilities and enhance profitability.

Contact Us

For any matter you may need to discuss or clarify, in terms of the suitable package and services you may need to register your company, please do not hesitate to contact us. Our Business Manager allocated to your own file will get promptly in touch with you.