Bahamas, The

The Bahamas relies primarily on consumption-based taxation rather than income-based taxation. It does not impose personal income tax, corporate income tax, capital gains tax, or wealth tax. Government revenue is instead derived mainly from Value Added Tax (VAT), import and customs duties, real property tax, and business licence fees.

The Bahamas tax administration framework comprises the following:

• Department of Inland Revenue (DIR): The DIR is the central authority responsible for administering and collecting key domestic taxes, including VAT, real property tax, and business licence fees.
• Online Tax Administration System (OTAS): The OTAS portal supports taxpayer registration, return filing, payment processing, and ongoing management of tax obligations.
• National Insurance Board (NIB): The NIB administers mandatory national insurance contributions payable by employed and self-employed individuals, subject to the applicable wage ceiling.
• International tax cooperation arrangements: The Bahamas maintains Tax Information Exchange Agreements (TIEAs) and participates in global transparency initiatives, including FATCA and CRS, notwithstanding the absence of traditional double tax treaties.