A total of approximately seven hundred islands and two thousand cays makes up the very popular tax have of the Bahamas. The Bahamas is located to the Southeast of the United States of America. Bahamas is also known as an offshore jurisdiction which provides offshore services such as offshore banking, the registration of offshore companies, investment fund, insurance, the registration of ships and vessels and trust management. The Bahamas offshore financial center is well monitored and is very secure. The offshore jurisdiction of Bahamas has a very stable economy which is maintained by its tourist industry and its offshore financial center.
Bahamas is known around the world for being a tax haven and an offshore center. Offshore services in the Bahamas gained momentum in the early 90’s when the Bahamas as a tax haven dominated the world of tax havens. In fact tax haven Bahamas was referred to as one of the 'big three' offshore financial centers. Today the Bahamas is still the offshore tax haven of choice among investors from the United States, Europe and other developed countries of the world.
In 1989, tax haven Bahamas passed legislation which give way for the incorporation of offshore companies or Bahamas International business companies (IBCs) in the offshore tax haven. Since then this legislation has been modified to keep the offshore jurisdiction competitive. As a tax haven Bahamas has measures put in place within company legislation which allows offshore companies to be tax exempt. Once the company is properly registered it becomes a legal entity and qualifies for tax exemptions for a period of twenty(20) years as guaranteed by the international business companies’ act of the offshore jurisdiction Bahamas. As a pure tax haven there is no capital gains tax, inheritance tax, withholding tax or gift tax in the Bahamas.
Bahamas has all the characteristics of a true tax haven. In the offshore tax haven the privacy of clients and investors in respected and protected. When incorporating international business companies in the tax haven of the Bahamas, the names of the beneficial owners, directors and the persons in charge of registering the Bahamas offshore company, although filed with the Registrar of Companies, is not made public. The offshore legislation governing the incorporation of Bahamas offshore corporations make provisions for these companies to be incorporated using nominee directors and shareholder. This adds further protection as the names of the rightful beneficial owners will not be known. Offshore companies in the tax haven of the Bahamas are awarded even more privacy by legislation. These companies are not mandated to prepare annual accounting records for presentation to the tax authorities thus preventing this information from being public. Accounting records for offshore companies in tax haven Bahamas can be kept at any location in the world and will only be accessed by company members.
The offshore banking sector in the tax haven of the Bahamas is well known around the world. Bahamas complies with international banking regulations and has strict laws in place regarding offshore banking in the jurisdiction. This makes offshore banking in the Bahamas very secure. There are no taxes applied to interest gained by offshore bank account in the tax haven of the Bahamas. Banking legislation in the Bahamas provides privacy to its offshore bank account holders. The tax haven of the Bahamas was the first in the Caribbean to adopt banking secrecy law. This is what increased the popularity of offshore banking in the tax haven and helped it to draw in many clients. Offshore banking laws in the Bahamas protect the information in offshore bank accounts in the Bahamas. Information in offshore bank account in the tax haven of the Bahamas can only be given out if the Supreme Court hands down a court order. Agents, bank employees and officers who disclose offshore bank account information are liable to pay fines and serve prison time.
Bahamas offshore trusts can be formed and are private and there is no law which requires that they be registered with the Registrar of Companies. Offshore trusts formed in tax haven Bahamas benefits from tax exemptions and exemption from Stamp Duty. Bahamas offshore trusts laws prevent forced hiership.
The offshore tax haven of the Bahamas has for many years provided confidentiality to clients. Tax haven Bahamas has given clients a safe means to reduce tax liabilities buy providing zero taxation. By putting capitals and wealth in the offshore tax haven of the Bahamas asset protection is guaranteed. Other benefits to the tax haven of Bahamas is that companies incorporated there can do business anywhere in the world and they are well recognized entities. Investing in an offshore bank in the tax haven of the Bahamas will bring in the definite result of growing capital thank to a tax free environment.