The Bahamas government has tabled legislation in the House of Assembly to update the jurisdiction's economic substance regime.

Corporate entities are already required to have a genuine economic presence in the Bahamas under the Commercial Entities (Substance Requirements) Act 2018 and some amendments made to it in 2019. However, in July 2022 the OECD made recommendations to the Bahamas as one of four jurisdictions whose enforcement of the substantial activities standard needed 'substantial improvement'. This was followed in October 2022 by the EU's addition of the Bahamas to its list of non-cooperative jurisdictions for tax purposes, because of deficiencies in enforcing its economic substance reporting regime combined with its zero- or nominal-only rate of corporate income tax...