Bahamas, The Commonwealth
of
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Capital:
Nassau
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Population:
300,000 (est. 2003)
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Languages:
English (official), Creole
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Area: 10,070
sq. km (land area)
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Currency:
Bahamian dollar (BSD)
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Fiscal year:
1 July - 30 June
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Independence
status: 10/07/1973 (from U.K.)
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BACKGROUND
THE COMMONWEALTH OF BAHAMAS, as they are officially
known, is made up of some 700 islands and 2,500
cays or islets scattered over 750 miles of the
Atlantic Ocean. Only about 25 of the Bahama
islands are inhabited, and three-fourths of
the people reside on just two islands; New Providence
(where Nassau the Capital is located) and Grand
Bahama Island (Freeport). The Bahamas is a stable,
developing nation with an economy heavily dependent
on tourism and offshore banking.
Legal System
Today, the Commonwealth of the Bahamas is a
constitutional monarchy with Queen Elizabeth
II of Great Britain the official head of state.
Under the 1973 Constitution, the British Monarch
appoints a Governor-General who ceremoniously
appoints other members to the 17 member Senate.
Effectively, the black majority, which control
the Assembly, now control the white minority
in the matters of political affairs in the Bahamas.
In regards to political stability, you have
to rate the Bahamas as one of the most stable
tax havens in the world. With strong ties to
Britain, protection from a foreign aggressor
is practically guaranteed by the British Royal
Navy.
Currency
The stability of the Bahamian economy is partially
due to the stablization of Bahamian Dollar.
The Bahamian Dollar has been pegged on a 1:1
ratio to the U.S. Dollar to facilitate the cash
transactions etc... The U.S. Dollar and the
Bahamian Dollar are used interchangeably throughout
the islands.
Confidentiality
Confidentiality is excellent with the English
common law duty of confidentiality being preserved
and expanded upon by statute imposing penalties
upon banks, attorneys, auditors and government
officials who are privy to private information.
Additionally, the Bahamas have no tax treaties
or agreements for the exchange of information
with any other state except agreements covering
mutual assistance in cases of drug trafficking.
Taxation
An International Business Company("IBC")
is a company, which is restricted from carrying
on business with persons resident in the Bahamas,
and cannot invest in real property situated
in the Bahamas, other than by holding a lease
of property for use as an office. An IBC cannot
carry on any banking, trust, insurance or reinsurance
business, or provide other restricted businesses.
An IBC is not taxed in the Bahamas. Maintaining
a bank account or retaining local professional
services etc.. is not considered carrying on
a business in the Bahamas under the Act.
New Legislations
The International Business Company ("IBC")
Amendment Act 2000 was introduced and repealling
the previous IBC legislation which allowed for
companies to be quickly and easily incorporated
for the purpose of transacting offshore business.
Main new enactment is:-
