Wednesday, June 5, 2019

Bahamas Announces VAT, Bank Tax Reforms In New Budget


by Mike Godfrey, Tax-News.com, Washington

The Bahamas announced a number of significant reforms in its 2019/20 Budget, released on May 29, 2019, including a new tax on banks, which will replace annual fees, and new VAT obligations on online marketplaces and the removal of VAT on exported services.

The Budget announces that all banks will no longer be subject to business licence fees. Instead, moving forward, all banks will be subject to supervisory fees and charges, and those with Bahamian dollar liabilities of over USD100m will incur a Domestic Systemically Important Institution (DSII) levy of 0.3 percent per year, which will be payable to the Central Bank of The Bahamas. The Government released no further details on the regime but said the new structure will result in a marginal increase in fees and tax from banks.

The Budget further announced that all online marketplaces that advertise and facilitate vacation rentals in The Bahamas will now be required to pay VAT on their rental and related sales to consumers in The Bahamas.  Read more >>