A Tax Compliance Certificate (TCC) is necessary when doing business with the Government of The Bahamas and has been in effect since July 1, 2015. The Financial Administration and Audit (Amendment) Act 2015 part IIB lays out the legal basis for the provision of the TCC.
Businesses should note that the TCC will be issued only to taxpayers who are compliant with their tax obligations to the government
The certificate is required for individuals who:
- Wish to do business with the government or a public body,
- Wish to collect monies for services rendered to the government or a public body
- Wish to register ownership or change ownership of a taxable good;
- Receive allowances under the provisions of legislation (i.e. churches, schools, etc).
The certificate will be valid for a period of one month where the value of the contract is $10,000 or more or six months where the value of the contract is less than $10,000.00
Before the department can issue a TCC, several agencies are contacted to ensure that the taxpayer is current with all its obligations to the government:
- Business Licence Unit
- National Insurance
- Real Property Tax
- Road Traffic
- Value Added Tax (VAT)
All applications must be submitted online by visiting vat.revenue.gov.bs
NB: The public should be aware that a Tax Compliance Certificate will not limit the execution of audits and will not rule out taxes that are owed to the Government.
Download form A1 – Application for Tax Compliance Certificate here
This is just a sample copy of how the tax compliance certificate will look.