Changes in the Legislation of the Bahamas

In general, international financial centers, such as The Bahamas, have changed their investment fund standards and introduced the rules of funds to be part of bigger global transparency and to take part in international initiatives.

Despite the COVID-19 pandemic, The Bahamas attempted to continue with the activity of its economy in general. To that end, its regulators kept themselves under constant review of the country's business-related legal framework. Here are some of the most notable changes that have taken place over the past year.

The first changes that we would like to mention are related to the management of public debt and public finance. In that sense, the government introduced two bills for acts. These are the Public Debt Management Bill, 2021, and the Public Finance Management Bill, 2021. According to the official website of the government of The Bahamas, the first one is “A bill for an act to consolidate the law relating to the management and control of public debt in the Bahamas and to provide for Governance aspects, high-level policy objectives and institutional arrangements for the prudent management of the Government's debt, the giving of guarantees and granting of loans, and to provide for matters connected therewith or ancillary thereto”.

Then, the latest one is “A bill for an act to provide for the control and management of public finance, for the operation of the consolidated fund, for the authorization of expenditures, for the administration of special funds, for the investment of public money, for internal audit, for the management of government property, for the preparation of the financial statements and reports on public finances, for the accountability of public entities and government business enterprises, collection of revenue and for transitional matters and consequential amendments and to provide for matters connected therewith and incidental thereto”.

As you can see, the Bahamian government is concerned about the perception that not only foreign investors have about the management of public funds or debt, but also the national people. When a government has transparency in the management of these aspects, it gives a better sense of trust and allows better opportunities to grow within a country.

Likewise, we have the Statistics Bill, 2021. This is an act to repeal the Statistics Act of 1973. This new bill has been set to establish The Bahamas National Statistical Institute and The Bahamas National Statistical Institute Board. The objective with all of this is “to make provision for a national statistical system to facilitate the establishment of standards for collecting, compiling, analysing and publishing official statistics and for related purposes”. This is also great news, considering that once you are making a market opportunity analysis it can be really helpful to have statistical information, updated and well organized.

Finally, there has been an amendment to the Value Added Tax Bill of 2014 and now is known as Value Added Tax (Amendment) Bill, 2021. There, among other things, it is established that “A marketplace shall be liable to pay and account for VAT in respect of a vacation home rental and any services offered as part of that rental based on the total value of the rental and services and the commission earned by the marketplace”.

Also, this bill includes the VAT exemption on the collection of government revenue. This means that “Any supply of services relating to the authorized collection of government revenue on behalf of the government from the 1st day of July, 2020 is exempt from VAT”. If you want to get to know all of these amendments in detail you can check the official website of the government, or directly ask our experts about any inquiry you may have related to these topics.