The Bahamas has emerged from its OECD discussions on international financial services with a unilateral commitment premised on the establishment of a level playing field for all centers conducting international financial services activities. The Bahamas has agreed to keep pace with developments adopted by OECD and non-OECD centres, so ensuring preservation of the competitive status of The Bahamas. No changes are proposed to the longstanding tax-free environment for international business, including no income tax, no corporation tax, no capital taxes and no withholding taxes.
As one of the world's leading centres for international financial services, The Bahamas recognises the value of a robust and constructive relationship with the US and other OECD member countries. The Agreement outlines the measures that The Bahamas is prepared to take in steps with OECD member and other competitor countries to achieve transparency and exchange of information.
The Bahamas' commitment is also based on:
1. Participation by The Bahamas on an equal basis in any discussions in the Global Forum on the design of internationally accepted standards for the implementation of these and any similar commitment;
2. Co-ordinated defensive measures being taken against those jurisdictions, including OECD member countries and non-member jurisdictions with which The Bahamas competes materially in the provision of cross border financial services, that fail to make equivalent commitment or to satisfy the standards of the 1998 Harmful Tax Competition Report;
3. The detailed implementation of any commitments not already provided for under Bahamas law being subject to the approval of the Parliament of The Bahamas.
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