How corporate tax works in Bahamas
The Bahamas does not currently impose a general corporate income tax on ordinary domestic businesses. That makes the country attractive for trading, holding, service and investment structures that are not in the Pillar Two scope.
The main corporate-level exception is the Domestic Minimum Top-Up Tax regime for multinational enterprise groups with annual consolidated revenues of at least EUR 750 million. The 2024 Act applies to relevant fiscal years beginning after 31 December 2023, subject to its transition rule.
Company compliance does not stop at CIT. Businesses in The Bahamas generally need a business licence, VAT registration once the threshold is met, real property tax where relevant, and National Insurance / payroll administration.
Tax rates at a glance
- Corporate income tax
- 0%General rate
- DMTT for large MNEs
- 15%
- Oil and gas tax
- 0%
- Withholding tax
- 0%
- Dividend remittance stamp duty
- 5% over BSD 500,000
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Holding companiesFoundersInvestorsRegional operatorsFamily offices
Watch out for
- The Bahamas has no general corporate income tax, but that does not eliminate VAT, customs duty, excise tax, stamp duty, real property tax or business licence tax.
- In-scope MNEs need to track the DMTT timetable and the GloBE information return deadline, and they may also need to check whether business licence tax credits apply under the 2025 amendments.
- Dividends are generally not subject to withholding tax, but a 5% stamp duty can apply when annual funds of BSD 500,000 or more are converted to foreign currency and remitted to a related party as dividends.
Frequently asked questions
Does The Bahamas have corporate income tax?
Not generally. Ordinary companies usually do not pay corporate income tax in The Bahamas, but in-scope multinational groups can fall under the 15% DMTT and businesses still face other taxes and fees.
What businesses pay corporate tax in The Bahamas?
The main corporate-level tax is the Domestic Minimum Top-Up Tax for large multinational enterprise groups. Most local companies outside that scope do not pay a general corporate income tax.
Is The Bahamas good for holding companies?
It can be, because the headline corporate tax rate is 0% and withholding tax is generally absent. The planning trade-off is substance, DMTT exposure for large groups, business licence tax and foreign tax risk.