Bahamas: Tax measures in 2016/17 budget

Bahamas: Tax measures in 2016/17 budget

The 2016/17 budget, presented in early June 2016 to the House of Assembly, reflects that tax reform and modernization efforts have resulted in improvements in revenue yields for the government. With this positive momentum, the budget keeps the rate of value added tax (VAT) at 7.5%, but introduces certain reductions in customs duties on numerous items and eliminates and adjusts the stamp (tax) duties imposed on certain transactions.

Related content

Among the tax measures announced in the budget are items that would: 

  • Extend real property tax concessions granted to residential properties last year to most commercial properties 
  • Provide customs duty exemptions and real property tax concessions to owners of derelict buildings in New Providence, who intend to demolish and or renovate these buildings for commercial, educational or social purposes
  • Reduce the duty rate on computer peripherals, routers and related items, and replace all remaining rates of customs duty (7%) with a 5% rate
  • Allow for waiver of stamp tax and VAT on deeds of exchange in instances when there are errors in property description; amend the stamp tax law to clarify meaning of transaction values, reduce the stamp tax rate to 2.5% on marina slips, and grant stamp tax exemptions for certain first-time homeowners
  • Exempt from VAT certain ancillary fees that are paid along with tuition
  • Adjust dates for submission of VAT payments to 21 days after end of the month, effective 1 January 2017

 

Read a June 2016 report [PDF 73 KB] prepared by the KPMG member firm in the Bahamas

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform