Bahamas: Tax measures in 2026-2027 budget include amendments to domestic minimum top-up tax (DMTT) rules; electronic notification of real property tax bills announced
2026-2027 budget measures became effective July 1, 2026.
The 2026–2027 National Budget was presented on May 27, 2026, and multiple amendment bills were introduced in the House of Assembly. The measures—which became effective July 1, 2026—include:
- Various amendments to domestic minimum top-up tax (DMTT) rules (i.e., requirement that DMTT be paid in installments and return be filed regardless of tax liability, introduction of notification requirements for certain multinational enterprise positions, and clarification regarding payment currency requirements)
- Changes to the real property tax threshold for owner-occupied property
- New category of foreign owner-occupied property
- Expansion of VAT withholding regime
- Increased business license tax rates for very large businesses
- Inclusion of cash and monies on deposit in the value of a business subject to stamp duty in a sale of business transaction
The Department of Inland Revenue (DIR) also announced, as part of the “One Tax Bahamas” Plan, that they will soon issue all real property tax notifications, including bills, electronically and has asked property owners to update their email addresses. VAT registrants and business license holders must update contact details by logging into their VAT account; other property owners may use an online form. Digital property tax bills are expected from October 2026, when the 2027 assessment lists are legally due for publication.
For more information, contact a KPMG tax professional in the Bahamas:
Patricia Jackson | patriciajackson@kpmg.com.bs