New Legislation
The Bahamas New Business License Act, 2023 (the “New Act”), which repeals and replaces the Business License Act, 2010 (the “Repealed Act”), is now in force along with the ancillary Business License Regulations, 2023 (the “New Regs”). The New Act is a consolidation and amendment of the law relating to business licenses from 2010 to 2022. To download the New Act, CLICK HERE.
Who does the New Act apply to?
The New Act's applicability has not changed; it is the same as in previous years. It applies to persons carrying on business in or from within The Bahamas.
Exemptions
Entities that do not engage in commercial activities, such as holding financial assets, real estate assets, or pure equity, are not subject to the New Act. Foundations are also not subject to this legislation, and the New Act does not apply to Smart Funds.
Does the New Act also apply to Financial Services entities?
Yes. Financial services entities are those subject to the payment of a licensing or other fee and are regulated under the Banks and Trust Companies Regulation Act, 2020 (“BTCRA”); the Securities Industry Act, 2011 (“SIA”); the Financial and Corporate Services Providers Act, 2020 (“FCSPA”); the IFA; the Digital Assets and Registered Exchanges Act, 2020 (“DARE”); the Insurance Act (Ch. 350); the External Insurance Act (Ch. 348).
When is the business license tax due?
Business licenses expire on 31 December yearly and must be renewed before 31 January. The applicable business license tax must be paid no later than 31 March.
Penalties
Please note that the above is a general summary, not legal advice. For further assistance or clarification, please get in touch with our team at Contact@viss.com.hk.
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