🇧🇸 Bahamas (IBC)Company Establishment/Offshore Registration Highlights
The Bahamas International Business Company (IBC) has no corporate income tax, but starting in 2024, tiered tax fees will be introduced for revenues derived from overseas operations. Those engaged in specific activities must meet economic substance requirements under the Business Entities (Substance Requirements) Act and are subject to UBO and CRS. Large groups are also affected by Pillar Two. Rules are evolving; please refer to the latest announcements from the Bahamas authorities (Registrar/DIR).
| Common Company Types | IBC (International Business Company) |
|---|---|
| Corporate income tax | No corporate income tax; tiered tax fees on overseas operational revenue starting in 2024; pillar two for large groups at 15% |
| Estimated establishment costs | Approximately US$1,000–US$2,500 |
| Annual maintenance | Annual fee, registered agent; overseas revenue is taxed based on tiers (e.g., low fixed fee + excess proportionally). |
| Substance/Reporting Requirements | Economic substance (specific activities), UBO, CRS; accounting records required. |
| Suitable for purpose | Holding, wealth management, asset holding |
| Bank account opening | Offshore account opening is tightening, requiring comprehensive KYC. |
| Recent Changes | From 2024, taxes will be applied to overseas revenue of IBCs; Pillar Two will affect large groups. |
Key considerations
- While there is no corporate income tax, overseas revenue tax starting in 2024 makes the 'zero-cost' assumption no longer valid.
- Entities engaged in finance, insurance, IP, shipping, headquarters, group services, and similar activities must have economic substance.
- Home country CFC/substance taxation rules may still apply; should not be considered as overall tax exemption.
General Process
- Establish an IBC through a licensed registered agent.
- Register UBO and assess whether it falls within the economic substance scope.
- Taxes are calculated and paid based on the revenue tiers of overseas operations.
- Pay the annual fee annually and maintain the registered agent along with accounting records.
Frequently Asked Questions
Is the Bahamas IBC still completely tax-free?
The Bahamas does not impose corporate income tax; however, starting in 2024, a tiered tax fee will be introduced for IBC revenues generated from overseas operations. Additionally, large groups may be affected by Pillar Two, so it should not be understood as entirely tax-free.
Does a Bahamas IBC need to demonstrate economic substance?
Entities engaged in specific activities (such as finance, IP, shipping, headquarters, etc.) must meet local substance requirements according to substance laws; the scope of purely passive holdings must be confirmed by official rules.
Official sources：The Bahamas — Department of Inland Revenue · Data date：2026-06。This page serves as a neutral compilation of publicly available information for reference only, notTax / LegalRecommendations are based on the latest official announcements.