BAHAMAS Law and Practice Contributed by: Judith Whitehead KC, Michaela Sumner-Budhi, Sean McWeeney Jr., Charisma Romer-Cartwright and Hubert Edwards, GrahamThompson
• consult with the Minister of Labour in writing and provide the Minister with the information contained in the said written statement. 4.5 Employee Representations Generally speaking, the role of an employee repre - sentative is not required by law. Where the workforce is unionised, industrial agree - ments provide for the appointment of a representa - tive, which would include, at a minimum, the purpose and functions as prescribed in the Industrial Relations Act. However, the extent of the rules and practices regarding employee representation depends on the terms negotiated between the relevant parties and thus may vary. For those employment relationships to which an industrial agreement applies, a workplace representa - tive is appointed who shall generally safeguard the interests of the employees and hear the collective views of the staff with a view of forwarding the same to the employer for their/its attention. Trade unions are required by law to co-operate in ensuring effective communication and consultation with the employer regarding the employees’ views and the problems they face in meeting the employer’s objectives. The trade union is also obligated to keep all employees adequately informed of the main terms and conditions of the employment, job requirements, reporting requirements, disciplinary and grievance procedures, safety and health rules, and the conclu - sions reached through negotiations and consultation with the employer.
1 July 2026 but not yet announced. The employable wage ceiling is BSD810 per week, from a previous ceiling of BSD740 per week. 5.2 Taxes Applicable to Businesses Business Licence Tax All persons (inclusive of companies) conducting busi - ness within The Bahamas must be granted a business licence. Although certain activities are exempt from the licence requirements under the Business Licence Act, generally, there is a modest business licence tax (calculated based on a percentage of the turnover for the preceding year) for companies conducting busi - ness within The Bahamas. Value Added Tax (VAT) All goods and most services supplied by a VAT-regis - tered business in The Bahamas that are neither sub - ject to the zero rate nor exempt from VAT are subject to VAT at the standard rate (presently 10%) or such other rate as prescribed by law for certain goods and services (eg, real estate transactions). Effective 1 April 2026, unprepared food items were exempted from VAT and the VAT charged on essential non-food items was reduced to 5%. The VAT charged on pre - scription and non-prescription drugs is also 5%. VAT is also charged on goods and some services that are imported from outside The Bahamas. Stamp Duty Stamp duty is payable in respect of certain transac - tions (namely transfers of personal property). A Stamp Duty may also arise on the conversion of funds from Bahamian dollars to United States dollars where such funds are to be used for remittance or transferred out of The Bahamas. Qualified Domestic Minimum Tax Top-Up The Domestic Minimum Top-Up Tax Act, 2024 came into force on 1 January 2024, applying to fiscal years of a Multinational Enterprise (“MNE Group”) that began after 31 December 2023. However, the Act does not apply to a fiscal year of an MNE Group beginning before 1 January 2025, unless that Group is affected by an Income Inclusion Rule or an Undertaxed Profits Rule of a jurisdiction outside The Bahamas.
5. Tax Law 5.1 Taxes Applicable to Employees/ Employers
Contributions to the National Insurance Board (the Bahamian equivalent to social security) are the only taxes that must be paid on behalf of employees. Employees currently contribute the equivalent of 4.65%, and employers contribute the equivalent of 6.65% of an employee’s salary up to the employable wage ceiling. New contribution rates anticipated from
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