CERTAIN RELIEF AND INCENTIVES under the Real Property Tax Act were introduced in July 2015 that are important to be reminded of for the tax year 2016.
Tax reduction for pensioners1
A citizen of The Bahamas over the age of 65 years or a retirement beneficiary under the National Insurance Act is entitled to a fifty percent (50%) reduction in real property taxes regarding his/her owner-occupied property on that portion of the tax payable with respect to the first One Million dollars of the assessed value. However, no reduction applies regarding the tax assessed on that part of the assessed value exceeding One Million dollars.
Tax Reduction for current account2
Persons paying before 31 March the full amount of all taxes and surcharges due will be entitled to a ten percent (10%) reduction on the amount paid.
All real property owned by a non-profit company incorporated in The Bahamas for the purpose of promoting religious objects is exempt from Real Property Tax.4
1. S4 of the Real Property Tax (Amendment) Act, 2015 which introduces a new s20A into the Real Property Tax Act (Ch 375)
2. S4 of the Real Property Tax (Amendment) Act. 2015 which introduces a new s20B into the Real Property Tax Act (Ch 375)
3. S7 of the Real Property Tax (Amendment) Act. 2015 which introduces a new s42(aa) into the Real Property Tax Act (Ch 375)
4. Previously exemption applied only to property used for religious worship.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.