The Bahamas is tax neutral, with no Income, Capital Gains, Estate or Inheritance taxes, and no withholding tax on dividends or interest. On January 1, 2015 a new Value Added Tax ("VAT") system came into force. VAT is an indirect tax which is considered a broadly based consumption tax charged on the value added to goods and services. It applies to almost all goods and services that are imported, bought and sold for use or consumption in The Bahamas. Crowe Horwath Bahamas offers advice and services with respect to registering, filing and accounting for VAT.
The Bahamas also requires an annual Business Licence fee for all entities obligated to pay this charge under the Business Licence Act, 2010. The Business Licence fee charged is based on the top line revenues of each filing entity. The Business Licence Unit of the Government of The Bahamas requires entities with revenues in excess of $100,000 to have their turnover certified by public accountants licenced by the Bahamas Institute of Chartered Accountants. Crowe Horwath Bahamas provides this certification service under a review engagement.