BUSINESS LICENCE BILL, 2023
Consolidates and amends law relating to business licences from 2010 to 2022
Repeals the Business Licence Act, 2010
BUSINESS
- A trade, profession, vocation, venture or undertaking;
-
- The provision of personal services, or technical and managerial skills, and any adventure or concern in the nature of trade that does not include employment;
- The provision by a club, association or organization, for a subscription or other consideration, of the facilities or advantages available to its members;
- The admission, for consideration of persons to any premises, save and except for fairs, sporting & charitable events;
- The exploitation of tangible or intangible property for the purpose of obtaining income on a continuing basis from such property.
REQUIREMENTS FOR A BUSINESS LICENCE
- Anyone carrying on a business in or from within The Bahamas
EXCEPTIONS:
- An investment fund regulated under the IFA
- The carrying out of activities as a pure equity holding entity
FSE DEFINITION
- A business that is subject to the payment of a licensing or other fee and is regulated in accordance with: Banks and Trust Companies Regulation Act, 2020 (BTCRA); Securities Industry Act, 2011 (SIA); Financial and Corporate Services Providers Act, 2020 (FCSPA); Investment Funds Act, 2019 (IFA); Digital Assets and Registered Exchanges Act, 2020 (DARE)
- Insurers regulated under the Insurance Actor External Insurance Act
- Co-operative credit unions under the Bahamas Co-operative Credit Unions Act, 2015 (BCCUA)
- Carbon Credit Trading Act, 2022 (CCTA)registrants
| Type of financial services entity | Annual tax | ||
|---|---|---|---|
| Authorized Dealers | 2.25% of total revenues net of interest expenses | ||
| Authorized Agents under the BTCRA | $10Kor 1.25% of turnover (whichever is greater). $100K max | ||
| Other Public Banks and Trust Companies | $25Kor 1% of turnover (whichever is greater). $100K max | ||
| Non-bank Money Transmission Businesses (MTBs) | $10K or 1.25% of turnover (whichever is greater). $100K max | ||
| CCTA, DARE, IFA & SIA registrants or licensees | 2.25% of turnover from operations in
the domestic market* 0.25% of turnover from operations outside of the domestic market. $100K max |
||
| Moneylenders | 2.25% of turnover | ||
| Other financial services entities | $2.5K or 1.25% of turnover (whichever is greater). $100K max | ||
OPERATIONS IN THE DOMESTIC MARKET
- Dealing in BSD denominated instruments
- Dealing in BISX products
- Providing products or services to Bahamian residents for exchange control purposes
FSE TAX
- Where an FSE carries on:
-
- more than one category of financial services
- other activities that are not financial services
Tax will be calculated at the highest of the applicable rates
BL TAXES OTHER BUSINESSES
| Turnover | Tax rate |
|---|---|
| Greater than $100K up to $500K per annum | 0.5% of turnover |
| Greater than $500K up to $5M per annum | 0.75% of turnover |
| Greater than $5M per annum | 1.25 % of turnover |
IBCs
- Revenue attributable to operations outside The Bahamas
-
- $2,500 for revenue up to $1M
- 0.25% up to $100K if revenue exceeds $1M
- Revenue attributable to operations within The Bahamas
-
- Refer to FSE schedule
- IBC revenue derived from the following is deemed to be from operations within The Bahamas
-
- Sale of or commercial benefit from property registered or located in the Bahamas
- Export of goods
- Sale or provision of services to persons within The Bahamas or resident* in The Bahamas
- Professional services
PROPRIETARY TRADING
- $15K or 0.25% of revenues derived from proprietary trading up to a maximum of $100K (whichever is greater)
- On all revenues derived from activities other than proprietary trading, refer to FSE schedule
FAMILY OFFICES
- $10K or 0.25% of turnover up to a maximum of $100K (whichever is greater)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.