Bahamas Tax Overview

The Bahamian tax system at a glance

The Bahamas is a no-direct-tax jurisdiction: there is no personal income tax, no general corporate income tax (other than the new Pillar Two minimum top-up tax for very large multinationals), and no capital gains, inheritance, estate, or gift tax. Government revenue comes mainly from VAT, customs/excise duties, business licence tax, real property tax, and stamp duty.

• Standard tax/assessment year — Calendar year (1 January to 31 December) ((approx — confirm)) (Business Licence Act, 2023)
• Currency — Bahamian dollar (BSD), pegged 1:1 to the US dollar (Central Bank of The Bahamas Act)
• Principal tax authority — Department of Inland Revenue (DIR), Ministry of Finance (Department of Inland Revenue)
• Basis of taxation — No tax on worldwide or domestic income of individuals; The Bahamas does not levy income tax on the basis of residence or source (PwC Worldwide Tax Summaries — Bahamas)
• Headline personal income tax rate — 0% — there is no personal income tax % (PwC Worldwide Tax Summaries — Bahamas (Individual))
• Headline corporate income tax rate — 0% general rate; a 15% Domestic Minimum Top-up Tax applies only to in-scope large multinational groups % (Domestic Minimum Top-Up Tax Act, 2024)
• Does a VAT/GST exist? — Yes — Value Added Tax at a standard rate of 10% % (Value Added Tax Act, 2014)
• Capital gains tax — None — there is no capital gains tax (PwC Worldwide Tax Summaries — Bahamas)
• Inheritance / estate / gift tax — None — there is no inheritance, estate, or gift tax (PwC Worldwide Tax Summaries — Bahamas)
• Business licence renewal / return filing deadline — Renew by 31 January; business licence tax payable by 31 March each year (Business Licence Act, 2023)
• Main payroll / social security remittance deadline — National Insurance contributions due by the 15th of the month following the contribution month (National Insurance Act)