Bahamas - Other taxes and levies

Bahamas - Other taxes and levies

Taxation of international executives

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Social security tax

Are there social security/social insurance taxes1 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%

Individuals working in the Bahamas are normally liable to pay national insurance on a maximum annual salary of BSD32,244. For employees earning more than BSD620 a week or BSD2,687 monthly, the rate is 3.9 percent. Employers’ contributions on the same earnings are at a rate of 5.9 percent.

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?

These do not apply in the Bahamas.

Real estate tax

Are there real estate taxes2 in the Bahamas?

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.

Sales/VAT tax

Are there sales and/or value-added taxes in the Bahamas?

No sales or VAT taxes at present although hotel room nights are subject to taxes and levies.

Unemployment tax

Are there unemployment taxes in the Bahamas?

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 duties and stamp tax at rates that vary. Property transactions are subject to stamp duties and property ownership is subject to property tax.

Work permit fees

All expatriates working in the Bahamas require work permits. Work permit fees are generally paid by the employer and can vary depending on the type of job.

Footnote

1National Insurance Act, 1972, Chapter 320, The Statute Laws of the Bahamas, 1987 Revision, Volume VIII.

2Real Property Tax Act, Chapter 339, The Statute Laws of the Bahamas, 1987 Revision, Volume VII.

1National Insurance Act, 1972, Chapter 320, The Statute Laws of the Bahamas, 1987 Revision, Volume VIII.



2Real Property Tax Act, Chapter 339, The Statute Laws of the Bahamas, 1987 Revision, Volume VII.

1National Insurance Act, 1972, Chapter 320, The Statute Laws of the Bahamas, 1987 Revision, Volume VIII.



2Real Property Tax Act, Chapter 339, The Statute Laws of the Bahamas, 1987 Revision, Volume VII.

1National Insurance Act, 1972, Chapter 320, The Statute Laws of the Bahamas, 1987 Revision, Volume VIII.



2Real Property Tax Act, Chapter 339, The Statute Laws of the Bahamas, 1987 Revision, Volume VII.

© 2016 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.

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