Bahamas Corporate Income Tax

Corporate income tax — general position

There is no general corporate income tax in The Bahamas. Companies instead pay an annual business licence tax measured on turnover (covered separately) plus VAT, customs duties, stamp duty, and real property tax where applicable. Since 2024 a 15% Domestic Minimum Top-up Tax applies, but only to in-scope large multinational enterprise groups.

• General corporate income tax rate — 0% % (no general corporate income tax) (PwC Worldwide Tax Summaries — Bahamas (Corporate) (https://taxsummaries.pwc.com/the-bahamas/corporate/taxes-on-corporate-income))
• Withholding tax on dividends, interest, royalties — 0% % (The Bahamas imposes no withholding tax on dividends, interest, or royalties paid to residents or non-residents) (PwC Worldwide Tax Summaries — Bahamas (Corporate) (https://taxsummaries.pwc.com/the-bahamas/corporate/withholding-taxes))

Domestic Minimum Top-up Tax (Pillar Two)

The Domestic Minimum Top-Up Tax Act, 2024 implements the OECD/G20 Pillar Two global minimum tax. It applies a 15% effective minimum tax only to constituent entities of in-scope multinational groups; ordinary Bahamian companies remain outside its scope.

• Domestic Minimum Top-up Tax rate — 15% % (minimum effective tax rate) (Domestic Minimum Top-Up Tax Act, 2024 (https://opm.gov.bs/bahamascitpillar2/))
• In-scope groups — Multinational enterprise (MNE) groups with consolidated global revenue of EUR 750 million or more in at least two of the four fiscal years immediately preceding the tested year (Domestic Minimum Top-Up Tax Act, 2024 (https://opm.gov.bs/wp-content/uploads/2024/08/Introduction-of-a-Domestic-Minimum-Top-Up-Tax-in-the-Bahamas.pdf))
• Effective date / first in-scope fiscal year — Applies to fiscal years beginning on or after 1 January 2025 (Act effective for fiscal years beginning after 31 December 2023, with constituent entities generally first captured from 1 January 2025) (Domestic Minimum Top-Up Tax Act, 2024 (https://higgsjohnson.com/the-domestic-minimum-top-up-tax-act/))
• Tax base — GloBE income (Pillar Two model rules) of in-scope constituent entities, computed per the OECD GloBE rules with the substance-based income exclusion ((approx — confirm)) (Domestic Minimum Top-Up Tax Act, 2024 (https://oecdpillars.com/a-review-of-the-bahamas-pillar-2-domestic-minimum-tax/))
• Interaction with business licence tax — Entities subject to the DMTT receive a credit for business licence tax paid, per the Business Licence (Amendment) Act, 2025 (deemed in operation from 1 January 2024) (Business Licence (Amendment) Act, 2025 (https://www.legal500.com/developments/thought-leadership/the-domestic-minimum-top-up-tax-act-2024/))
• DMTT registration / filing — In-scope groups must register and file a GloBE Information Return / top-up tax return with the competent authority; specific deadlines set by regulation (confirm current filing dates) ((approx — confirm)) (Domestic Minimum Top-Up Tax Act, 2024 (https://opm.gov.bs/bahamascitpillar2/))