background image
2.2. Tax Consequence of Contributions

There are no tax consequences of contributions in cash or in kind. There are no capital duties or transfer taxes.

The Stamp Act, Chapter 370, as amended, provides for stamp duty, which is basically a tax on:

  • instruments executing certain transactions, mainly financial;
  • certain court formalities; and
  • certain acts.

In principle, no unstamped instruments may be used in a Bahamian court of law or may be formally filed with the Registrar General. To validate such documents stamp duty may be paid retrospectively, with or without penalty. Payment of the duty is generally shown by adhesive or embossed stamps on the instrument. Payment for the stamp is made to the Treasurer.

The duties are basically levied on the person executing the instrument concerned. Where, however, the purchaser, assignee or transferee is a non-Bahamian, or where the stamp duty is at least twice the amount payable or involves a deed of exchange of realty or personality, the responsibility for stamping the instrument lies equally with the vendor, assignor or transferor and with the purchaser, assignee or transferee.

The Treasurer may adjudicate the amount of stamp duties payable in doubtful cases.