BAHAMAS Law and Practice Contributed by: Judith Whitehead KC, Michaela Sumner-Budhi, Sean McWeeney Jr., Charisma Romer-Cartwright and Hubert Edwards, GrahamThompson
The City of Nassau Revitalisation Act The City of Nassau Revitalisation Act allows incentives and duty concessions for owners of property situated in the city of Nassau (located on the island of New Providence) who are desirous of restoring, repairing, and upgrading the buildings, both commercial and residential. The Bahamas Vacation Plan and Time-Sharing Act The Bahamas Vacation Plan and Time-sharing Act allows duty-free concessions for persons who have been granted a developing owner’s licence with respect to building supplies for the construction of timeshare facilities. 5.4 Tax Consolidation This is not applicable in The Bahamas as there are no laws governing the same. 5.5 Thin Capitalisation Rules and Other Limitations In The Bahamas this is not applicable as there are no laws governing the same. 5.6 Transfer Pricing Transfer pricing is not applicable in The Bahamas as there are no laws governing the same. 5.7 Anti-Evasion Rules There are no anti-evasion rules in The Bahamas as there are no relevant laws. 5.8 Tariffs The Bahamas’ tariff regime is in the form of taxes imposed on goods imported into the country. Most of the goods purchased by Bahamian residents are imported. These import duties are a significant source of income for the Bahamian government, and in some instances, provide a level of protection for Bahamian businesses. Items imported into the country that com - pete with locally produced goods are typically taxed at a higher rate. The government has lowered or eliminated tariffs in the construction, agriculture, fisheries and renewable sectors to encourage economic activity.
alia, the construction, rehabilitation, remodelling, equipping, and furnishing of a new or existing hotel or resort (taking into account both large and small- scale projects) together with a concession from real property taxes for a prescribed period. Moreover, any entertainment facility, nightclub, restau - rant, and shop within a designated area (described by an order of the responsible minister) is also afforded the same concessions. The concessions under the Hotels Encouragement Act are geared towards any person or company or any group of persons or companies who are (acting in conjunction) prepared to undertake the construc - tion or remodelling of a new or existing hotel or resort. The Family Island Development Encouragement Act The Family Island Development Encouragement Act allows persons to receive duty concessions on the importation of building materials (inclusive of plumb - ing, electrical, mechanical, and construction materials of all kinds) for residential and/or commercial develop - ment on certain islands within The Bahamas. The Industries Encouragement Act The Industries Encouragement Act allows for duty- free concessions for the importation of machinery, building, and other materials or appliances for an approved manufacturer who is manufacturing an approved product together with an exemption from real property tax for 15 years concerning any relevant factory premises. The concessions under the Industries Encouragement Act are geared towards such manufacturers and prod - ucts approved by the responsible minister to encour - age the establishment and development of certain industries within The Bahamas. Hawksbill Creek, Grand Bahama (Deep Water Harbour and Industrial Area) Act The Hawksbill Creek, Grand Bahama (Deep Water Harbour and Industrial Area) Act allows for the Port Area known as Freeport, a free trade zone, to be free from certain taxes (eg, excise tax, stamp duties, and most customs duties) until 2054.
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