BAHAMAS Law and Practice Contributed by: Judith Whitehead KC, Graham Thompson
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 Encour - agement Act are geared towards such manufac - turers and products approved by the responsi - ble minister to encourage 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. 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 desir - ous 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.
The first filings are expected to occur within 18 months after 31 December 2025. 5.3 Available Tax Credits/Incentives The following is a non-exhaustive list of various pieces of legislation that provide tax conces - sions to persons who engage in business in The Bahamas. The Hotels Encouragement Act The Hotels Encouragement Act allows duty-free entry within The Bahamas of approved materi - als for, inter 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, restaurant, and shop within a designated area (described by an order of the responsible minis - ter) is also afforded the same concessions. The concessions under the Hotels Encourage - ment Act are geared towards any person or company or any group of persons or compa - nies who are (acting in conjunction) prepared to undertake the construction 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 (inclu - sive of plumbing, electrical, mechanical, and construction materials of all kinds) for residen - tial and/or commercial development on certain islands within The Bahamas.
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