There is no corporate tax in the Bahamas. However, resident and non-resident companies seeking to conduct business in the Bahamas must apply to the governing authorities and be granted approval for a business license.

The Bahamas government has published the Business License Bill 2023, replacing the Business License Act 2010, establishing new rules for the business license tax, including an expanded scope of taxable turnover

As per the new rules, turnover includes total revenues in money and money’s worth accruing from business activities within the Bahamas during the year of assessment, without any deductions on account of the cost of property sold, the cost of materials used, the cost of services used, labor costs, taxes, royalties paid in cash or in kind or otherwise, interest or discount paid or any other deductions whatsoever.

Taxable turnover includes:

All cash, credit sales, and commissions;
The gross amounts receivable as compensation for personal services;
The gross receipts derived from trade, business, commerce, or sales;
The total value proceeding or accruing from the sale of tangible or intangible property or service, or both including all deposits and progress payments received in relation to such sale;
The gross receipts by reason of the investment of the capital of any business engaged in by the taxable person, including rentals, royalties, fees, reimbursed costs, or expenses;
In relation to an IBC, all revenues recorded by the IBC in its books and records in the Bahamas, whether or not any portion of such revenues is attributable to activities conducted outside the Bahamas;
The gross premiums payable to an insurer under an insurance contract;
Revenue accruing from proprietary trading;
Revenue accruing from operations as a family office; and
Any other emoluments however designated, including all interest, carrying charges, fees, or other like income, however denominated, derived by a taxable person from the repetitive carrying of accounts, in the regular course and conduct of his business, and extension of credit in connection with the sale of any tangible or intangible property or service.

Further, it clarifies that revenue generated by IBCs from the following activities is considered to be generated within the Bahamas:

The sale or exploitation of tangible or intangible property that is located or registered in the Bahamas;
The export of goods;
The sale or other provision of goods or services to persons:

deemed resident for exchange control purposes; or
who are within the Bahamas at the time that the goods or services are sold or otherwise provided; and

Professional services, including legal services, architectural services, consultancy services, engineering services, accountancy services, and advisory services.

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