Business Barbados

Overview

The manufacturing sector comprises mainly of light industry which includes the production of cement blocks, clay tiles, garments and textiles, paint, paper products, furniture, electronic components, chemicals, edible oils, soap and food products. Manufacturing enterprises involved in the production of an “approved product” are entitled to special incentives under the Fiscal Incentives Act on approval of their application by the Ministry of Finance and Economic Affairs. Tax holidays are granted according to the percentage of local value added to the item being manufactured. Enterprises considered to be highly capital-intensive with an investment of BB$25m (US$12.5m) or higher may be eligible for up to 20 years tax holiday. Companies involved in manufacturing exclusively for export outside of Barbados can qualify for benefits as an International Business Company (IBC) or International Society with Restricted Liability (ISRL). These benefits include a tax rate ranging from 2.5% down to 0.5%. In addition to the low tax rates these benefits include exemption from exchange controls and the duty-free import of plant machinery, equipment and raw materials used in the manufacturing process.

Web & Other Resources

Barbados Manufacturers’ Association
http://www.bma.bb
Barbados Investment & Development Corporation
http://www.bidc.com
Ministry of Trade, Industry & Commerce
http://www.commerce.gov.bb
Barbados Private Sector Trade Team
http://www.tradeteam.bb
Barbados Coalition of Service Industries
http://www.bcsi.org.bb
National Council for Science & Technology
http://ncst.gov.bb
Caribbean Export Development Agency
http://www.carib-export.com