tax havens [bahamas].pptx

7/29/2019 Tax Havens [Bahamas].pptx

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Tax Havens:

BahamasEmile Justin CebrianFar Eastern University Institute of Law


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The State Full designation:

o The Commonwealth of theBahamas

Nature of territory:o Archipelago

Location:o The Americas (Atlantic side) Capital city:

o Nassau

Population:o 353,658 (2010 estimate)

Currency:o Bahamian Dollar (BSD)

GDP per capita:o $22,832 (2012 estimate) // Total:

$8.043 billion


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The Haven Overview:

o The Bahamas is often described as both an off-shore financialcenterand a pure tax haven.

o The Bahamas is likewise touted as the perfect no-tax haven,

and for good reason: "Countries like the Bahamas make taxhaven status an integral part of their marketingrelocate toNassau, and youll fear no tax man. Thats because, forBahamians and resident aliens there are no taxes on personalincome, capital gains, inheritance or gifts. (Woosley and Eaves, "TaxHavens of the World", Forbes [2007])

o The Bahamas is the off-shore tax haven of choice for investorsfrom the US, Europe, and other developed countries.


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The Haven What makes the Bahamas a

tax haven?o The Bahamas has:

No personal or company incometax

No capital gains tax No withholding tax

No business tax

No estate tax

No gift tax

No inheritance tax

No death duties

No employment tax

No sales taxes

No exchange controls

No tax treaties

No probate fees

o This freedom from taxes is enjoyed byresident corporations, partnerships,individuals, non-resident and non-resident controlled Bahamian entitiesand trusts

o The only direct tax in the Bahamas isa real property tax (rate depends onwhether the property is commercialor owner-occupied)

Its not just a haven, its practically heaven. huehue

Assessed Value Commercial Owner-Occupied

~ US$50,000 0.50% exempted

US$50,000 US$100,000

0.50% forfirst 50K //1.00% for

next 50K

0.75% for next 50K

US$100,000+ Same asimmediately

precedingbut + 1.50%on all value

> 100K

Same asimmediately

preceding but +1% on all value >

100K


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The IBCA The International Business Companies Act

o Passed on Jan. 11, 1990

o Purpose: providing for the incorporation, registration and operation of International BusinessCompanies ("IBCs")

What does the law require for one to be an IBC?o Substantially, to prove non-resident status

o Any company may be incorporated as an IBC unless: It carries on business with persons resident in the Bahamas

it owns an interest in, or a lease of, real estate situated in the Bahamas (unless a lease ofoffice space)

it carries on banking or trust business,

it carries on insurance or reinsurance business

it carries on the business of providing the registered office for companies

o Minimum number of shareholders required to form a company: 2

o The incorporation process takes a measly 24-48 hours

Benefits that come with IBC status:o Shareholders of IBCs are exempt from all income taxes, capital gains taxes and corporate taxes

o There is likewise an exemption from inheritance, succession and gift taxes, stamp duties in respectof transfers, and foreign exchange control regulations

o No limit to capital, exemption from payment of business license fees, etc.


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Thank you for listening! SOURCES:

o http://taxhaven.dunway.com/html/bahamas.html

o http://www.mondaq.com/x/7406/Environmental+Law/A+Guide+To+International+Business+Companies+In+The+Bahamas

o http://www.forbes.com/2007/03/15/havens-international-tax-forbeslife-cx_mw_ee_0315taxhavens.html

o http://www.taxhavens.biz/caribbean_tax_havens/tax_haven_bahamas/

o http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/Tax/Taxation%20and%20Investment%20Guides/2013/dttl_tax_highlight_2013_Bahamas.pdf

o http://www.geographia.com/bahamas/investment/inbsco01.htm

o http://www.geographia.com/bahamas/investment/trade01.htm

o http://www.globalpropertyguide.com/Caribbean/Bahamas/Taxes-and-Costs

Yes, its over. You can wake up now.