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Bahamas - Special considerations for short-term assignments

Bahamas - Special considerations for short-term...

Taxation of international executives

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For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than 1 year.

Residency rules

Are there special residency considerations for short-term assignments?

A “Short Term Work Permit / Visa” is required for any non-Bahamian who wishes to work in the Bahamas for up to 90 days.

Payroll considerations

Are there special payroll considerations for short-term assignments?

Normal payroll requirements apply except that exchange control approval is required to remit a portion of salary to the home country/territory.

Taxable income

What income will be taxed during short-term assignments?

There is no income tax established in The Bahamas, however, the social security deductions are applied up to BSD34,836 of income.

Intra-group statutory directors

Will a non-resident of Bahamas who, as part of their employment within a group company, is also appointed as a statutory director (i.e. member of the Board of Directors in a group company situated in Bahamas trigger a personal tax liability in Bahamas, even though no separate director's fee/remuneration is paid for their duties as a board member?

No, as there are no income, company, capital gains, wealth, succession, or gift taxes applicable in The Bahamas.

a) Will the taxation be triggered irrespective of whether or not the board member is physically present at the board meetings in Bahamas?

No, as there are no income, company, capital gains, wealth, succession, or gift taxes applicable in The Bahamas.

b) Will the answer be different if the cost directly or indirectly is charged to/allocated to the company situated in Bahamas (i.e. as a general management fee where the duties rendered as a board member is included)?

No, as there are no income, company, capital gains, wealth, succession, or gift taxes applicable in The Bahamas.

In the case that a tax liability is triggered, how will the taxable income be determined?

This is not applicable, as there are no income, company, capital gains, wealth, succession, or gift taxes applicable in The Bahamas.

Additional considerations

Are there any additional considerations that should be considered before initiating a short-term assignment in the Bahamas?

The prospective employer should be consulted for documents required to be submitted with work permit application.

© 2020 KPMG, the Bahamas partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity.  Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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