Cabinet approves further extension on SERZ tax breaks for GB, Abaco

Cabinet approves further extension on SERZ tax breaks for GB, Abaco

NASSAU, BAHAMAS — Following the extension of a number of tax concessions under the Special Economic Recovery Zone (SERZ) last month, the Ministry of Finance announced yesterday that zero-rated construction services and the import of vehicles VAT-free will also receive extensions.

Minister of State for Finance Kwasi Thompson said: “Construction activities remain a critical item for the recovery process. The SERZ Extension Order approved in December provided tax relief on the local sale and importation of construction supplies.

“The latest amendment order allows for the zero-rating of construction services, which will render these activities VAT-free within the zone until June 30, 2021.”

He added: “The government is listening and responding to the needs of the people. The road to recovery is not an easy one for residents in the islands devastated by Hurricane Dorian, and we are doing everything we can to provide support where we can.”

According to the Ministry of Finance, Cabinet “approved the Disaster Reconstruction Authority (Special Economic Recovery Zone) (Relief) (Amendment) Order, 2021, which includes construction services in the list of tax exempted activities until June 30, 2021”.

“There is a provision that specifically requires these services to be invoiced before June 30 and paid in full by September 31, 2021,” it noted.

“The latest amendment also extends the time allowance for the import of VAT-free vehicles. Replacement vehicles must be purchased and shipped prior to January 31, 2021, representing a one-month extension, and arrive in The Bahamas by April 30, 2021.”