The Bahamas is now the fourth country to buckle under OECD pressure and introduce taxes in a matter of months. As of 01/01/2024, a capital gains tax will be due in the Bahamas.
The shock is deep-seated and is likely to jolt many out of their slumber of tax exemption. If the Bahamas was previously considered a top jurisdiction to save on accounting and tax returns, that will now change abruptly as of Jan. 1, 2024.
It is astonishing with what power the OECD acts against the territorial rights of foreign recognized states. If we used to think that each country made its own laws, we are now clearly seeing a new global power. In the Bahamas, there is already open talk of a new kind of colonial rule and racism.
With the EU’s tax haven defense law, the EU is now interfering with its own freedom of decision with a sharp blade against states recognized under international law. The state power of foreign countries thus undermined. Many are looking with fear at what may lie ahead.
Currently, there is talk of a capital gains tax, which is expected to be between 10% and 15%. Although it is currently not clear exactly how high this tax will be, income taxes are not yet under discussion for the time being. Thus, initially only profits are due on corporations. However, it is now only a small step to introduce an income tax as well.
It will also be interesting to see how the collection of the newly introduced taxes will be handled. Since there were no taxes until now, there was no tax office or tax advisor for it. As an elegant solution, banks are apparently to help out as bookkeepers directly via incoming and outgoing payments. A corresponding corporate account in the Bahamas will thus be necessary in the future to comply with the new requirements.
Despite this news, the Bahamas remains an interesting emigration destination from our point of view. With a US LLC, profits can be distributed tax-free in the Bahamas in the future.
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