NASSAU, BAHAMAS — The government does not anticipate any fallout or loss of business due to its decision to introduce a 15 percent corporate tax to comply with the OECD’s Pillar Two tax framework, noting that up to 50 multinational companies will likely be impacted.
Speaking at a weekly press conference at the Office of the Prime Minister, Halkitis stated: “Regarding the OECD 15 percent minimum tax and the 750 million Euro threshold under Pillar II, we estimate there might be a maximum of 50 multinational companies that fall into that category. We have made some estimates of possible revenue that might accrue. We intend to lay the legislation to bring that into effect.”
He added: “Our intention is to present the legislation at budget time, allowing the summer period between the budget presentation and when we go back to Parliament in September for additional consultation, and then we intend to bring that into effect. We have had a lot of consultation with companies that fall within the range, and we don’t expect any negative fallout in terms of pushback or exodus of business.”
The Bahamas is one of 140 countries that have signed on to the G-20/Organisation for Economic Co-Operation and Development (OECD) drive for a minimum 15 percent global corporate tax. Initially, this applies only to corporate groups and their subsidiaries with a minimum annual turnover of over 750 million euros.
