Bahamas issues Green Paper on corporate income tax strategies

The Ministry of Finance today announced the release of the Green Paper on “Corporate Income Tax Strategies for The Bahamas”, which aims to solicit feedback from stakeholders on the government’s proposals to achieve greater efficiency and equity in the business tax regime and achieve alignment with global tax developments. 

The CIT strategies identified by the government in the Green Paper include four (4) options: Option 1 represents the OECD 15% compliant Pillar Two regime; Option 2 adds to Option 1 a 10% rate for other firms; Option 3 adds to Option 1 a 12% rate for firms above B$0.5 million and maintains the BLF for firms below this threshold and Option 4 applies a 15% CIT across all firms, except for those below the B$0.5 million which would attract a 10% rate.

The Green Paper contains a series of questions, intended to help with refining these options and other design features of the proposed CIT regime in the next phase of the exercise.
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Interested parties are invited to comment on the proposals by July 3, 2023.