Bahamas Enforced Regulatory Requirements

Bahamas is now part of the EU list of non-cooperative jurisdictions for tax purposes (the ‘Blacklist’).

The Bahamian government seeks to align itself with EU requirements to be removed from the Blacklist.

New regulatory requirements will be implemented:

1 - Business License tax; and

2 - Economic substance-enhanced requirements. 

Under the new Regulations - The Business License Act, 2023 - a business license is required for entities and persons carrying on an active business in or from within The Bahamas. Persons or entities that are only holding assets (of any kind) and are not operating a business within The Bahamas are not required to have a business license or to pay business license taxes.

Further, on September 1, 2023, CESRA (The Act) replaced the Economic Substance requirements for the Bahamas and changed the concept of “relevant activity” and its reporting.

The Clients should seek tax advice to assess the impact of the blacklist on their structure and seek advice on any modification.