The Bahamas Issues a QDMTT Amendment Bill for Compliance Amendments

In June 2026, The Bahamas issued the Domestic Minimum Top-Up Tax (Amendment) Bill, 2026 to provide for various administrative amendments to its DMTT regime. If enacted the law would come into force on July 1, 2026. 

Overview

The key changes in the Bill are:

1. Mandatory filing even where no DMTT is payable. Every Bahamas Constituent Entity of an in-scope MNE Group would have to file, or have filed on its behalf, a GloBE Information Return and relevant notifications, or a prescribed return, whether or not tax is payable.
2. Dual-residence notification. A Bahamas Constituent Entity that claims it is resident in both The Bahamas and another jurisdiction, but located in the other jurisdiction for GloBE Article 10.3.4 purposes, would have to notify the Secretary and provide supporting information, records and documentation.
3. Currency and instalments. DMTT, penalties, interest and other amounts would be payable in Bahamian dollars or U.S. dollars, and new section 7A would introduce a prescribed instalment-payment system based on prior-year DMTT liability.
4. Broader but less permanent advance rulings. The Secretary’s ruling jurisdiction would expand from proposed transactions, ventures or activities to “any matter relevant to this Act”, but rulings would be time-limited and would cease to apply to the extent inconsistent with the GloBE Model Rules or later Commentary or Agreed Administrative Guidance.
5. Expanded reassessment exposure. The Bill would remove the ordinary assessment time limitation where a misrepresentation is attributable to neglect, carelessness, fraud, wilful default or wilful misstatement.
6. Regulation-making powers. The Minister would be empowered to make regulations on payment methods, instalment mechanics, due dates, computation protocols, penalties and interest.

Filing a GIR or return even where no tax is payable

The proposed change

Clause 2 would replace section 6(1) of the principal Act. The new provision would require every Bahamas Constituent Entity of an MNE Group within the scope of the GloBE Rules to file with the Secretary, or have filed on its behalf, whether or not tax is payable, either:

– a GloBE Information Return and any applicable notifications in accordance with Articles 8.1 and 9.4 of the GloBE Model Rules; or

– a prescribed return.

Therefore, this removes any doubt that a nil DMTT position, safe-harbour position, absence of residual top-up tax, or lack of current payment obligation excuses a Bahamas filing obligation.

Dual residence: a new notification and obligation

The proposed change

Clause 2 would also insert a new section 6(3). It applies where a Bahamas Constituent Entity asserts that, for GloBE purposes, it is resident in both The Bahamas and another jurisdiction, and that its location under Article 10.3.4 of the GloBE Model Rules is in the other jurisdiction. In that case, the entity must notify the Secretary and provide such information, records and documentation as the Secretary may require to verify that position.

Interaction with the principal Act and Article 10.3

The principal Act adopts GloBE terminology and provides domestic rules for location. Among other things, an entity other than a flow-through entity is treated as resident in The Bahamas if it is incorporated, created or organised in The Bahamas, or has its place of effective management in The Bahamas.

Article 10.3 of the OECD Model Rules deals with the location of entities. It includes rules for determining the location of non-flow-through entities and tie-breaker rules for entities that could be located in more than one jurisdiction.

The amendment targets an entity with Bahamas nexus that seeks to locate outside The Bahamas under the GloBE tie-breaker rules. This has a significant GloBE impact because the location of a Constituent Entity affects jurisdictional blending, DMTT allocation, safe-harbour analysis, GIR reporting and the interaction between the Bahamas DMTT and other jurisdictions’ IIR or UTPR rules.

Payment currency and instalments