NASSAU, BAHAMAS — The government’s newly implemented multinational corporate tax generated just $68.6 million during the 2025/2026 fiscal year, falling $61.5 million short of its $130.1 million revenue target, according to the Ministry of Finance’s latest fiscal report.
The June 2026 Monthly Fiscal Summary Report reveals that the Domestic Minimum Top-Up Tax (DMTT), introduced as part of the international framework establishing a 15 percent minimum tax on qualifying large multinational groups, generated just 52.7 percent of its budgeted revenue.
The shortfall comes despite the government recording its first fiscal surplus since independence, with Prime Minister Philip Davis announcing Wednesday that the country ended the fiscal year with a $39.3 million surplus.
The $68.6 million collected under the new tax exceeded the government’s entire annual fiscal surplus, highlighting the significance of the revenue stream to the country’s public finances.
According to the Ministry of Finance report, the entire $68.6 million was collected in June, with no revenue recorded under the category of taxes on income, profits and capital gains during the preceding 11 months of the fiscal year.
The report lists $130.1 million as the budgeted amount for that category, compared to actual collections of $68.6 million.
Addressing Parliament, Davis highlighted the introduction of the new tax as part of the government’s efforts to strengthen revenue collection and bring the country’s tax framework into alignment with international standards.
“The Domestic Minimum Top-Up Tax applies the globally agreed fifteen percent minimum rate to large multinational groups operating in The Bahamas. Newly implemented this year, it contributed $68.6 million in June, revenue that would otherwise have been collected by other jurisdictions,” Davis said.
However, neither the Prime Minister’s parliamentary communication nor the monthly fiscal report provided an explanation for the $61.5 million difference between projected and actual collections.
The documents also did not indicate how many multinational companies made payments under the new regime or whether the government anticipates higher collections during the current fiscal year.
The revenue shortfall is significant given the government’s efforts to strengthen its fiscal position while maintaining expenditure on public services, infrastructure and debt servicing.
The Ministry of Finance report shows that total tax revenue reached $3.42 billion during the fiscal year, representing 99.4 percent of the government’s $3.44 billion budget target.
Despite the multinational tax shortfall, stronger-than-expected collections in other revenue categories helped support the government’s overall fiscal performance.
VAT collections reached $1.65 billion, exceeding the $1.52 billion budget allocation by approximately $127.5 million.
Non-tax revenue also outperformed projections, reaching $543.3 million against a budget of $447.9 million.
Total government revenue consequently reached $3.96 billion, exceeding the $3.90 billion budget projection.
Nevertheless, the government recorded a fiscal surplus of $39.3 million, below its original $75.5 million target, as expenditure exceeded budgeted levels.
The Prime Minister maintained that the government’s approach to revenue generation has focused on improved compliance and the collection of taxes already owed.
“This Government chose to strengthen revenue by improving collection and compliance rather than by imposing new burdens on households already under pressure,” Davis told Parliament.
He also pointed to the country’s improving standing with international credit rating agencies, citing Moody’s April 2026 upgrade of The Bahamas to Ba3 with a stable outlook.
Davis acknowledged that further fiscal reforms remain necessary, including improving the performance of public enterprises, reducing the cost of national debt and strengthening financial reporting.