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Business License
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HIGHLIGHTS OF THE BUSINESS LICENSE ACT 2010 AND RELATED AMENDMENTS
A new Business Act is now the law of the land, replacing the old Business License Act of 1980.
Highlights are as follows:
· The new Act becomes effective January 1, 2011 and requires making application and payment of fees no later than March 31.
· There is now a new Form A, which replaced the old Form A & B.
· The requirement to have certification by an accountant licensed to practice under the Public Accountants Act for turnover of $500,000 has now been removed and replaced by certification of businesses with turnover of $1,000,000 or more.
· Fees are now based on turnover (sales or revenues) only.
· Fees vary by business category. Hotels, construction companies, wholesalers of petroleum products and food wholesalers are now subject to fees of ½ of 1% of their turnover.
· Agricultural and animal husbandry/mixed farming, fishing/fish farms and food/meat/fruit processing are now subject to fees of ½ 1% of their turnover.
· Professional service firms and individuals are now subject to fees of 1% of their turnover.
· Businesses with turnover greater than $50,000 but not more than $500,000 are now subject to fees of ½ of 1% of their turnover.
· Other businesses with turnover of $500,000 or more are now subject to fees of 3/4 of 1% of their turnover.
· Retail petroleum service stations are subject to fees ranging from $1,000 to as high as $35,000 for turnover up to $500,000 to over $15,000,000.
· With the exception of businesses with turnover under $50,000 all other businesses are required to keep proper accounting records for at least 5 years.
· Businesses and individuals applying for a new Business Licence are now legally required to show proof that their National Insurance and Real Property Taxes are paid up to date.
· Foreign persons with contracts in The Bahamas are subjected to fees of 1 ½% of the value of the contract, payable in advance of the issuance of the Licence and must be in possession of a “Tempory Licence”.
· An “Occassional Licence” is now required by foreign travelling salesperson, entertainment groups or their promoters, trade shows, expos to vend at a regatta or farmer’s market.
· The Secretary of Revenue has the power to assess Business Licence fees in cases where there may be questionable reporting, no notice has been given to the Secretary that the business is no longer operating and there has been no annual filing of Business Licence and/or payment of fees. The Secretary of Revenue has the power to summons any person, including their accountants or persons with significant knowledge of the business transactions to assist with any investigations, including requiring the production of a business accounting and financial records. The cost of this audit to be borne by the business.
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