Govt to begin issuing permanent resident tax certificates
The government has agreed in principle to begin issuing permanent resident tax certificates that will clarify the tax status of individuals who want to be considered residents in The Bahamas for tax purposes, Minister of Financial Services, Trade and Industry and Immigration Brent Symonette said yesterday.
Symonette said this has been a bone of contention for the Organization for Economic Cooperation and Development (OECD), a financial services watchdog.
According to Symonette, the permanent residency certificate will require the holder to spend a minimum of 90 days – not necessarily consecutively – and can spend no more than 183 days in one other country.
“That will offset any taxes required in another country or any other country in the world,” he said.
“The OECD has an issue will people using permanent residency as a way of avoiding tax requirements in their own country.”
The Bahamas before the introduction of this tax certificate would have no way for a person to prove their tax status in another country, so as to not suffer taxation in more than one country.
The OECD and other international financial services watchdogs have been cracking down on international financial centers like The Bahamas in order to ensure citizens of countries that are members of these international organizations pay taxes.
Education: Florida International University, BS in Journalism