Economic Overview
The Bahamas is among the wealthiest nations in the Caribbean region. With autonomy in 1973, the nation liberated itself from the UK’s trade control enactment and set up a seaward banking and venture industry; it is presently a noteworthy monetary focus and ship vault, among the biggest on the planet as far as gross tonnage enlisted. Since 1717 there has been practically no assessment on people or organizations. Government income is raised through a scope of extract obligations and charges.
In spite of the fact that farming and ranger service creation and business angling extended from the 1990s, and the nation is an exporter of products of the soil just as fish, it by and by imports the greater part of its foodstuffs and buyer merchandise, and is firmly affected by the financial atmosphere in the USA, not least in light of the fact that most of its vacationer guests are from that nation.
From the mid 1990s, confronting extreme subsidence, the legislature presented a monetary change program which stressed financial obligation, privatization of government-possessed lodgings, venture advancement, foundation improvement and expansion of the economy. From the mid-1990s, as the USA left retreat, this brought about an extensive stretch of good development with unobtrusive expansion.
Main sectors of Industry
Agriculture and fishing
Agribusiness represents an extremely little segment of the GNP and utilizes a similar extent of the workforce. Just a modest division of the land is arable, and soils are shallow. Almost the majority of the nation’s foodstuffs are imported, generally from the United States. In any case, the bright atmosphere supports the development of numerous organic products, including tomato, pineapple, banana, mango, guava, sapodilla (the product of a tropical evergreen tree), soursop, grapefruit, and ocean grape. A few pigs, sheep, and cows are raised. The little angling industry’s catch is overwhelmed by barbed lobster, grouper, and conch.
Resources and power
Mineral ventures are restricted to the generation of salt and concrete. Power is created altogether from imported oil and condensed petroleum gas. Power-producing stations are situated all through the islands.
Manufacturing
Assembling ventures focus on the generation of rum and other alcohol. Different fabricates incorporate concrete and pharmaceuticals, and canned products of the soil barbed lobster are handled. The Industries Encouragement Act (1970) offers producers alleviation from taxes and different charges.
Trade
By a long shot the nation’s most critical exchanging accomplice is the United States. Other exchanging accomplices incorporate France, Finland, and Dominica. Real imports incorporate apparatus and transport gear, nourishment items, and mineral energizes. Significant fares are oil and shake lobster. The European Union and a few different nations absolved certain Bahamian items from obligations under the Generalized System of Preferences.
Services and finance
The travel industry represents more than 33% of the GNP and utilizes around two-fifths of the workforce. It focuses on New Providence and Grand Bahama islands; most voyagers originate from the United States. A few hundred banks and trust organizations have been pulled in to The Bahamas on the grounds that there are no salary or corporate duties and on the grounds that the mystery of money related exchanges is ensured. Open uses are obliged by the administration’s reliance on circuitous expenses, which are required principally on the travel industry and outside exchange. The national bank is the Central Bank of The Bahamas, set up in 1974. The national cash is the Bahamian dollar; U.S. money is additionally acknowledged all through the islands.
Transportation
Nassau and Freeport and their environs have cleared street frameworks, as do the vast majority of the possessed islands. An armada of little engine vessels known as mail water crafts conveys travelers, cargo, and mail among Nassau and the Out Islands. Nassau and Freeport are the nation’s two primary ports. Freeport likewise has an extensive compartment transshipment port. Various outside traveler and cargo ships visit Bahamian ports every year. All through the islands there are many air terminals, with changing housing and offices. The greater part of these serve just interinsular air ship, however global airplane terminals are situated at Nassau, Freeport, and Exuma, and universal flights additionally associate with a few of the other Bahamian islands.
Taxes in Bahamas
In the Bahamas there is no income tax, capital gains tax, capital transfer tax or estate tax.
Those in employment pay national insurance contributions – 3.9% paid by the employee and 5.9% paid by the employer. Self-employed pay the whole amount by themselves.
Organizations in the Bahamas pay business permit expenses, stamp obligation, property duties and import obligation. Normally seaward or non-occupant consolidated substances are excluded from business permit expenses and many are absolved from stamp obligation. Most organizations pay joining or enrollment expenses to the Government.
The Bahamas has no tax treaties but tax information exchange agreements are in effect with approximately 32 jurisdictions, including the US.
Investing in The Bahamas
The following incentives are open to any qualifying individual or firm:
The Hotels Encouragement Act — For duty free entry of approved construction materials, furnishings and fixtures for hotel development as well as provides for exemption/concession from real property tax for the first 20 years of operation of a hotel/resort, shops and restaurants with a touristic component.
The Industries Encouragement Act — Duty-free concessions for the importation of machinery, raw materials and building supplies for manufacturing entities in addition to exemption from Real Property Tax for a 15 year period.
Duty free concessions is valid for the first five years of operation. Thereafter, applicants would be required to pay a reduced rate of duty (10%) on all approved materials and equipment imported.
The Bahamas Vacation Plan and Time Sharing Act — Duty-free concessions for building supplies for the construction of timeshare facilities.
The Free Trade Zones Act — Designates areas within The Bahamas as free industrial and commercial zones.
The Hawksbill Creek Agreement Act — Allows the Port Area that is the free trade zone of Freeport, Grand Bahama, freedom from stamp duties and most customs duties until 2054.
The Tariff Act — Allows for customs duty exemption on specified raw materials, supplies and equipment for Agriculture, Floriculture, Horticulture, Fisheries, Forestry, Cottage and Light Industries, and Commercial Printing.
The Export Manufacturing Industries, Encouragement Act, The Agricultural Manufactories Act, The Spirits and Beer Manufacture Act — Investment incentives under these acts include exemption from the payment of customs duties on building materials, equipment and approved raw materials and real property taxes for periods up to 20 years.
The City Of Nassau Revitalization Act — Provides incentives and duty concessions in connection with the restoration, repair and upgrade of buildings, commercial and residential, in the City of Nassau.
The Family Island Development Encouragement Act — Provides duty concessions on the importation of building materials, equipment and supplies for commercial and/or residential developments on specified Family Islands.*
_______________
*The Government of Bahamas Investment Authority