Page 48 - Caribbean-Central America Profile 2018

BAHAMAS

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

FREE TRADE ZONES TAXES The Bahamas has signed Tax Information
The Free Trade Zones Act designates areas Value Added Tax (VAT) was introduced in The Exchange Agreements (TIEAs) with several
within The Bahamas as free industrial and Bahamas in January 2015 as part of a broader countries whereby arrangements to co-operate
commercial zones. There are free trade zones on reform of the tax system. The broad based for the exchange of information in relation to
the islands of New Providence (Bahamas Free consumption tax is applied to almost all goods tax matters are carried out.
Trade Zone) and Grand Bahama. and services that are imported, bought and sold
for use in The Bahamas. Two rates of VAT are GOVERNMENT
The Hawksbill Creek Agreement Act allows the applied which is the standard rate of 7.5% and The Bahamas is a member of the Commonwealth
Port Area that is the free trade zone of Freeport, a zero rate of 0%. Goods exported to customers of Nations. Legislative power is vested in
Grand Bahama, tax concessions granted by the abroad are classified as exempt from VAT or a bicameral parliament, which consists of a
Government for a period of 20 years which zero rated. 38-member House of Assembly, with members
commenced on May 04, 2016 to existing elected from single-member districts, and a
licensees of the Grand Bahama Port Authority TRADE AGREEMENTS AND 16-member Senate, with members appointed by
on an individual basis, subject to certain INVESTMENT TREATIES the governor-general, including nine on the advice
conditions and under a framework that would • The Lome Convention: Preferential of the prime minister, four on the advice of the
provide for the maintaining of performance treatment of certain goods exported to EEC leader of the opposition, and three on the advice
through periodic reviews every five years. countries. of the prime minister after consultation with the
Excise taxes, stamp duties and most customs • Generalized System of Preference (GSP): leader of the opposition. The House of Assembly
duties are exempted until 2054. preferential treatment of certain goods carries out all major legislative functions.
entering the United States. As under the Westminster system, the prime
Freeport is operated by the private Grand minister may dissolve parliament and call a general
Bahama Port Authority under the terms of the • Caribbean Basin Initiative (CBI): election at any time within a five-year term.
agreement, which was extended recently to the preferential treatment of certain goods
year 2054. entering the United States. ELECTIONS
• Caribcan: Preferential treatment of certain General elections were held in the Bahamas
Grand Bahama Port Authority goods entering Canada. on 10 May 2017. The result was a victory for
P.O. Box F-42666, • CARIFORUM: a subgroup of African, the opposition Free National Movement led
Freeport, Grand Bahama Island Caribbean and Pacific Group of States and by Dr. Hubert Minnis, which defeated the
Bahamas serves as a base for economic dialogue with ruling Progressive Liberal Party led by Prime
Tel: (242) 350-9000 the European Union Minister Perry Christie. The next election is
Fax: (242) 352-6184 constitutionally due in May 2022.
• CARICOM

Starting a Business - Registration Requirements:
No: Procedure Time to complete: Costs
Search for a company name and reserve the
1 Less than one day (online procedure) USD 25
proposed name online
A lawyer prepares and notarizes the company
2 documents (memorandum and articles of 1 day on average Usually about USD 650 (USD 100 to public
treasury + USD 550 register of company)
association)
USD 100 stamp duty is payable on the first
Stamp duty on the memorandum paid to the USD 5,000 authorized capital of the company
3 1 day
Public Treasury and USD 5 for every additional USD 1,000
authorized capital
USD 1000 for the incorporation + USD 50 for a
File the company documents at the Companies
4 3 days Certified copy of the Memorandum and Articles
Registry
of Association
Obtain the National Insurance Number from the
5* 1 day no charge
National Insurance Board
Register the company for a business license at
6* the Department of Inland Revenue - the Ministry 10 days USD 100 (flat fee)
of Finance
Register for Tax Identification Number for Value
7 5 days no charge
Added Tax
2 days on average (simultaneous
*8 Obtain a company seal USD 35
with previous procedure)
* Takes place simultaneously with another procedure. Source: The World Bank Group

B-12 Caribbean-Central American Action