Bahamas - Other taxes and levies
Bahamas - Other taxes and levies
Taxation of international executives
Social security tax
Are there social security/social insurance taxes in the Bahamas? If so, what are the rates for employers and employees?
Employer and employee
Type of Insurance |
Paid by Employer |
Paid by Employee |
Total |
National Insurance |
5.9% |
3.9% |
9.8% |
Total |
5.9% |
3.9% |
9.8% |
All individuals working in the Bahamas are normally liable to pay national insurance on a maximum annual salary of BSD34,836. An employee rate of 3.9 percent and an employer rate of 5.9 percent is applied to the employee’s salary. The rates are applied up to a maximum ceiling of BSD670 weekly or BSD2,903 monthly (totaling a maximum annual salary of BSD34,836). This maximum level is effective from 1 July 2018 and is subject to a further increase every 2 years thereafter by the estimated increase in average wages. An update to the National Insurance rates and ceiling is scheduled for 1 July 2020. Details of the changes are currently not available.
The national insurance scheme is compulsory. It provides benefits in respect of sickness, industrial injury, disability, maternity, retirement, and death.
Gift, wealth, estate, and/or inheritance tax
Are there any gift, wealth, estate, and/or inheritance taxes in the Bahamas?
No, these do not apply in the Bahamas.
Real estate tax
Are there real estate taxes in the Bahamas?
A real property tax of between 0 percent and 2 percent is payable depending upon the value of the property and whether or not it is foreign owned. Property transactions are also subject to VAT of 10 percent.
Sales/VAT tax
Are there sales and/or value-added taxes in the Bahamas?
Yes, Value Added Tax (VAT), came into effect in The Bahamas on 1 January 2015 at a rate of 7.5 percent and was increased to 12 percent effective 1 July 2018.
Unemployment tax
Are there unemployment taxes in the Bahamas?
There are no unemployment taxes at present.
Other taxes
Are there additional taxes in the Bahamas that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.
Most imports are subject to customs (import) duties of between 0 percent and 220 percent. The average rate of import duty is 30 percent to 35 percent.
Stamp tax apply on certain instruments and transactions at rates that vary.
Excise duty is calculated and charged on locally produced products when put up for retail sale. Currently, excise duty is collected on locally produced alcoholic spirits, beer and vitamalt.
Work permit fees
All expatriates working in the Bahamas require work permits, which are generally paid for by the employer. Annual permit fees can vary depending on the industry, job title and the length of time the employee has resided in The Bahamas to date. The annual fees can range from BSD200 to BSD15,500.
Foreign Financial Assets
Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/jurisdiction’s fiscal or banking authorities?
No.
Disclaimer
All information contained in this publication is summarized by KPMG Advisory Services Ltd., a Bahamian company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the National Insurance Act of 1974 and its subsequent amendments; the website of The National Insurance Board of the Commonwealth of The Bahamas; the Immigration Act of 1967 and its subsequent amendments; the website of the Department of Immigration of the Commonwealth of The Bahamas; the website of the Custom’s Department of the Commonwealth of The Bahamas; the Value Added Tax Act of 2014 and its subsequent amendments; the Data Protection (Privacy of Personal Information) Act of 2007; the website of The Investment Authority of the Commonwealth of The Bahamas.
© 2021 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.
