Tax In Bahamas
One of the most consistently challenging aspects of contracting in the Bahamas is complying with the country’s tax system. As well as paying tax in the Bahamas, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.
If you’re working in the Bahamas under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in the Bahamas for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in the Bahamas, but contractors may not be offered this service because of their short stay with each employer.
Anybody who can’t pay their tax in the Bahamas through PAYE is left with the prospect doing everything themselves.
Do you know much about Bahamian Tax Law? Does the Bahamas have a tax treaty with your home country? You will need to find out or find someone who can help!
If you are a contractor and want a calculation on your tax and net retention in the Bahamas, we can supply it to you free of charge.
Contractors in the Bahamas are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Bahamian umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).
The companies are experts in Bahamian taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Bahamian tax office or tax department directly including processing your tax refund if you are eligible.
We work with numerous umbrella companies in the Bahamas, many of whom are experts in tax and immigration laws. If you have any questions about tax in the Bahamas, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Bahamian work permit.
Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in the Bahamas but without the overhead of directly dealing with the Bahamian tax authorities. Get in touch with us today for some reliable advice on tax in the Bahamas!
There are taxes on employment income in the Bahamas.
There are taxes on employment income in the Bahamas.
Social Security Contributions: Individuals in the Bahamas are required to make social security contributions. This Bahamas National Insurance Board contribution requires employers to pay 5.9% of wages, while the employee contributes 3.9% (capped at BSD33,804 annually).
No
Since there is no personal income tax in the Bahamas, residence is not defined for personal income tax purposes.
You become a resident in the Bahamas when:
- You make a minimum $500,000 investment in a real estate purchase (standard procedure); or
- You make a minimum $1,500,000 investment in a real estate purchase (fast-tracked procedure).
No