Bahamas: Tax measures in 2016/17 budget | KPMG | GLOBAL

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.


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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

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