The Deputy President of the Bahamas has broadcast that the country will start adhering to EU and OECD regulations to end the so-called ‘ring-fencing’ that is occurring whereby preferential tax regimes are granted to the following entities:
• International conglomerates.
• Non-resident entities.
• Shell companies.
• Foreign investors.
However, the Removal of Preferential Exemptions Bill currently being reviewed will include loose provisions for existing foreign investors to avoid any Bahamas registered companies suffering from losses. Both the EU and the OECD will blacklist all jurisdictions that still have tax regimes to favour non-resident companies over local and residential entities.