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:-
